Dixon and Taiwan’s Gemtek Form Joint Venture to Manufacture Telecom Components in India
India’s electronics manufacturing sector received a boost as Dixon Technologies announced that its subsidiary, Dixon Electroconnect, has signed a binding term sheet with Taiwan-based Gemtek Technology to establish a joint venture in India. Under the proposed arrangement, Dixon will hold a 60% stake and Gemtek 40%. The venture will manufacture optical transceivers, bidirectional optical subassemblies (BOSA), and other telecom-related products, supporting the growing demand for high-speed networking and communication infrastructure.
The companies stated that the partnership aligns with India’s “Make in India” initiative and aims to strengthen domestic electronics manufacturing capabilities while building globally competitive technology supply chains. Dixon highlighted that its participation in the government’s Electronics Components Manufacturing Scheme (ECMS) further enhances the venture’s strategic positioning. Gemtek noted that the collaboration supports its global expansion plans and is intended to address rising demand for cloud, edge computing, AI-driven data centers, and optical communication infrastructure. For non-Indian companies, the development signals increasing opportunities to partner with Indian manufacturers, leverage government-backed incentives, and establish a local production base for serving both the Indian market and global telecom supply chains.
Editor’s Note: Dixon Technologies’ subsidiary Dixon Electroconnect has signed a joint venture agreement with Taiwan’s Gemtek Technology, with Dixon holding 60% and Gemtek 40%, to manufacture optical transceivers and telecom products in India. The partnership supports the “Make in India” initiative, strengthens domestic electronics manufacturing, and targets rising demand from cloud, edge computing, AI‑driven data centres, and global telecom supply chains.
MSI Eyes Laptop Exports from India, Explores Expansion into AI Servers and Enterprise Solutions
Taiwanese PC manufacturer MSI is evaluating the possibility of exporting laptops manufactured in India to international markets as part of its broader growth strategy. Speaking at Computex 2026, Bruce Lin, Senior Executive at MSI India, said the company is in discussions regarding exports, although a timeline has not yet been finalized. MSI currently produces most of its laptops for the Indian market locally through contract manufacturing partners, including Syrma SGS, and was among the first brands to manufacture laptops in India featuring Nvidia’s latest RTX 50-series graphics processors. The company also plans to deepen its presence in India by expanding beyond consumer devices into areas such as AI computing servers, enterprise solutions, EV charging systems, and robotics.
MSI remains optimistic about India’s PC market, citing device replacement cycles and growing adoption of generative AI applications as key demand drivers. The company has doubled its investments in India between 2022 and 2025, expanded its retail and service network, and now operates around 50 exclusive stores, with increasing focus on Tier-2 and Tier-3 cities. At Computex 2026, MSI also highlighted opportunities arising from Nvidia’s new RTX Spark AI-focused computing platform, which is expected to power next-generation AI-enabled PCs. For non-Indian companies, MSI’s plans underscore India’s growing role as both a manufacturing hub and a market for advanced computing technologies, while also signaling potential opportunities for global suppliers, component makers, and enterprise technology firms seeking partnerships or production bases in the country’s expanding electronics ecosystem.
Editor’s Note: MSI is considering exporting laptops made in India to global markets, building on its local production with partners like Syrma SGS and its early adoption of Nvidia’s RTX 50‑series processors. The company has doubled investments in India, expanded to 50 exclusive stores, and plans to move into AI servers, EV charging, and robotics, underscoring India’s growing role as both a manufacturing hub and advanced computing market.
India–US Trade Deal Hinges on Outcome of Section 301 Tariff Probe
India and the United States are moving closer to finalizing an interim trade agreement, but the deal is expected to be concluded only after the completion of the U.S. Trade Representative’s (USTR) Section 301 investigation into alleged unfair trade practices. According to an Indian trade official, New Delhi is seeking preferential tariff treatment from Washington and wants tariff rates that are competitive with those offered to rival manufacturing economies. India is also seeking assurances that it will not face additional tariffs after the agreement is signed. Trade discussions have accelerated following recent meetings in New Delhi between Indian officials and a U.S. delegation led by Assistant U.S. Trade Representative Brendan Lynch, with both sides aiming to complete the first phase of the agreement by mid-July.
The negotiations have been complicated by proposed U.S. tariffs linked to the Section 301 probe, including a proposed additional 12.5% duty on imports from India and concerns over alleged excess capacity in sectors such as textiles and steel. India has pushed back against these allegations while continuing to negotiate for more favorable market access and tariff terms. The outcome of the probe is expected to play a key role in determining the final contours of the agreement and the competitiveness of Indian exports in the U.S. market. For non-Indian companies, the evolving trade framework is significant because it could reshape supply-chain strategies, sourcing decisions, and investment plans across Asia, particularly for manufacturers seeking to serve the U.S. market through India or compete with Indian exports under a potentially preferential tariff regime.
Editor’s Note: India and the U.S. are advancing toward an interim trade deal, but finalization hinges on the outcome of the USTR’s Section 301 investigation into alleged unfair practices and proposed tariffs, including a 12.5% duty on Indian imports. India is pushing for preferential tariff treatment and assurances against new duties, with the agreement expected to reshape supply chains and investment strategies across Asia.
Indian Firms Showcase Electronics and Software Capabilities at COMPUTEX 2026 in Taipei
Indian companies including Sahasra Electronics and Zoho Corporation participated as exhibitors at COMPUTEX 2026 in Taipei, one of the world’s largest technology trade exhibitions, which featured around 6,000 booths from 1,500 exhibitors across 33 countries. Sahasra Electronics showcased its microSD card products and reported strong interest from customers from China, the United States, Europe, and the United Kingdom. The company stated that it was using the event to explore new customer relationships, technology collaborations, and potential joint ventures that could support the implementation of advanced technologies in India.
Zoho highlighted Taiwan as an increasingly important growth market, citing rising digital adoption and stronger engagement from local businesses with its cloud-based software solutions. Company representatives noted that India’s reputation in software development and technology services has helped build trust among Taiwanese customers. Organizers of COMPUTEX also encouraged greater participation from Indian firms in future editions, reflecting expanding India–Taiwan cooperation in areas such as semiconductors, AI infrastructure, and electronics supply chains. For non-Indian companies, the event underscores growing opportunities to collaborate with Indian technology and electronics firms, leverage India’s manufacturing and software capabilities, and participate in cross-border partnerships as India and Taiwan deepen their roles in global technology ecosystems.
Editor’s Note: Indian firms Sahasra Electronics and Zoho Corporation showcased their products at COMPUTEX 2026 in Taipei, with Sahasra promoting microSD cards to global customers and Zoho highlighting Taiwan’s growing adoption of its cloud solutions. Organizers encouraged greater Indian participation, reflecting deepening India–Taiwan cooperation in semiconductors, AI, and electronics supply chains, and signaling opportunities for cross‑border partnerships.
AirTrunk Commits Over $30 Billion to Expand Data Center Infrastructure in India by 2030
Australia-based data center operator AirTrunk has announced plans to invest more than ₹3 trillion (approximately US$30 billion) in India by 2030 to support growing demand for artificial intelligence and cloud computing services. The commitment was announced following meetings between AirTrunk founder and CEO Robin Khuda and Indian government officials, including Prime Minister Narendra Modi. The company aims to develop around five gigawatts of data center capacity across the country, with its largest project being a three-gigawatt data center hub in the western state of Maharashtra. The project, located in Raigad near Mumbai, is expected to involve investment of approximately ₹2 trillion and marks one of the largest data center developments announced in India to date.
AirTrunk stated that India’s large population, rapid digital adoption, and growing AI ambitions make it a strategically important market for long-term expansion. The company recently strengthened its presence in the country through the acquisition of Lumina CloudInfra, which is developing additional data center capacity across India. The announcement comes amid increasing competition in India’s digital infrastructure sector, with major domestic groups such as Reliance Industries and Adani Enterprises also pursuing large-scale investments in data centers and related infrastructure. For non-Indian companies, AirTrunk’s expansion highlights the growing opportunities in India’s AI, cloud computing, and digital infrastructure ecosystem, creating potential demand for global technology providers, equipment suppliers, renewable energy developers, and investors seeking participation in one of the world’s fastest-growing data center markets.
Editor’s Note: AirTrunk will invest over ₹3 trillion (US$30 billion) in India by 2030 to build around 5 GW of data center capacity, including a massive 3 GW hub in the Raigad district of Maharashtra. The expansion, strengthened by its acquisition of Lumina CloudInfra, underscores India’s growing role in AI, cloud, and digital infrastructure, creating opportunities for global technology providers and investors.
India Moves to Eliminate Capital Gains Tax on Foreign Investment in Government Bonds
India has announced plans to remove capital gains tax on foreign portfolio investments in government securities as part of efforts to attract overseas capital and support the rupee amid external economic pressures. The move, first reported by The Economic Times and later confirmed through government action, exempts eligible foreign investors from taxes on gains and interest earned from government bond investments. Foreign investors had previously been subject to a 12.5% long-term capital gains tax and a 20% withholding tax on interest from government securities. The measure is intended to improve post-tax returns for overseas investors and make Indian government debt more attractive in global markets.
The policy forms part of India’s broader strategy to increase foreign participation in its debt market, which has gained greater international visibility through inclusion in major global bond indices. Officials have indicated that the tax exemption could also strengthen India’s case for inclusion in additional international bond benchmarks, potentially unlocking further capital inflows. While analysts do not expect an immediate surge in investment, they believe the reform could support medium-term inflows, broaden the investor base for government securities, and enhance financial market stability. For non-Indian companies, particularly global asset managers, pension funds, sovereign wealth funds, and financial institutions, the tax change improves the attractiveness of Indian government bonds as an investment destination and may encourage greater allocation of capital to India’s fixed-income market.
Editor’s Note: India has exempted foreign portfolio investors from capital gains and interest taxes on government securities to boost overseas capital inflows and support the rupee. The reform, tied to India’s inclusion in global bond indices, aims to broaden the investor base and enhance financial stability, making Indian government debt more attractive to global asset managers and institutions.
AI Stock Rally Pushes Indian Companies Out of MSCI Emerging Markets Top 10
Indian companies have dropped out of the top 10 constituents of the MSCI Emerging Markets (EM) Index for the first time in at least 26 years, as a global surge in artificial intelligence and semiconductor-related stocks redirected investor capital toward markets such as Taiwan, South Korea, and China. India’s largest constituents in the benchmark, HDFC Bank and Reliance Industries, have slipped to the 11th and 12th positions, respectively, after weaker share price performance reduced their weightings in the index. The shift reflects the strong performance of AI-linked companies such as Taiwan Semiconductor Manufacturing Company, Samsung Electronics, and SK Hynix, which have benefited from growing global demand for AI infrastructure and semiconductor technologies.
India’s overall weight in the MSCI EM Index has fallen to a multi-year low, despite continued additions of Indian companies to the benchmark, as investors increasingly favor economies with greater exposure to the AI and semiconductor value chain. Analysts cited in the report noted that the concentration of capital in a handful of AI-related stocks has significantly reshaped emerging market investment flows and benchmark composition. While the trend has boosted returns in technology-focused markets, it has also raised concerns about concentration risk should sentiment toward AI stocks weaken. For non-Indian companies, the development highlights the growing influence of AI and semiconductor industries on global capital allocation, underscoring the strategic importance of participating in AI-related supply chains, advanced manufacturing, and digital infrastructure sectors that are attracting a disproportionate share of international investment.
Editor’s Note: Indian companies have exited the top 10 of the MSCI Emerging Markets Index for the first time in 26 years, with HDFC Bank and Reliance Industries slipping to 11th and 12th as AI‑linked firms like TSMC, Samsung, and SK Hynix dominate. India’s overall weight in the index has fallen despite new additions, reflecting investor preference for semiconductor‑driven markets and raising concerns about concentration risk if sentiment toward AI stocks shifts.
India’s Fertility Rate Falls Below Replacement Level, Signaling Major Demographic Shift
India’s total fertility rate (TFR) has fallen to 1.9 children per woman, dropping below the replacement level of 2.1 for the first time, according to the country’s latest demographic data. The decline reflects a long-term trend driven by greater access to education and contraception, lower infant mortality rates, increased female participation in decision-making, and the rising cost of raising children. Significant regional differences remain, with states such as Bihar and Uttar Pradesh continuing to record higher fertility rates, while Delhi and several southern states have among the lowest rates in the country.
Experts cited in the report warn that the trend could eventually reduce the size of India’s future workforce and accelerate population ageing, potentially affecting long-term economic growth. While India is still benefiting from its demographic dividend—a period characterized by a large working-age population—the country may face increasing pressure to strengthen healthcare, pension, and social security systems as the population ages. The demographic shift could also influence political representation and resource allocation among states due to differing population growth rates. For non-Indian companies, the development is particularly relevant as India’s long-term attractiveness as a labor-intensive manufacturing and services hub will increasingly depend on productivity gains, automation, AI adoption, and workforce development rather than population growth alone. Companies with investments in consumer markets, healthcare, education, retirement services, and workforce technologies may also find new opportunities emerging from India’s evolving demographic profile.
Editor’s Note: India’s fertility rate has fallen to 1.9, below the replacement level of 2.1, driven by education, contraception access, and rising child‑rearing costs, though states like Bihar and Uttar Pradesh still record higher rates. Experts warn this could shrink the future workforce and accelerate ageing, making productivity gains, automation, and stronger healthcare and pension systems critical for sustaining economic growth and attracting investment.