Fraunhofer IPMS Eyes India Expansion Amid Semiconductor Push
Germany-based Fraunhofer Institute for Photonics and Microsystems (IPMS) is expanding its engagement with India’s electronics and semiconductor ecosystem as the country accelerates efforts to build a stronger domestic microelectronics industry. Speaking to EE Times, Michael Scholles, corporate business development manager at Fraunhofer IPMS, said the institute views India as an emerging force in semiconductor technologies, supported by government-backed initiatives aimed at strengthening the sector. He noted that the organization sees India transitioning toward a more active role in semiconductor and microelectronics development through increased industrial and research collaboration.
At a recent trade exhibition in Noida, Fraunhofer IPMS showcased sensor technologies focused on industrial digitalization and received encouraging responses from Indian companies interested in its offerings. Scholles added that areas such as MEMS and photonics are gaining momentum in India, although identifying the right industry and research partners remains a challenge. Discussions with companies in Bengaluru reportedly reflected strong interest in collaboration opportunities. The institute’s growing engagement with India also signals broader opportunities for non-Indian technology firms seeking partnerships, contract research support, and access to India’s expanding semiconductor and electronics manufacturing ecosystem.
Editor’s Note: Fraunhofer IPMS is deepening its engagement with India’s semiconductor and electronics ecosystem, viewing the country as an emerging force in microelectronics backed by government initiatives. The institute showcased sensor technologies in Noida and found strong interest in areas like MEMS and photonics, with collaboration discussions in Bengaluru highlighting broader opportunities for global firms to partner with India’s expanding industry.
Yotta, Gorilla Technology Expand India AI Infrastructure Partnership with $2.8 Billion Project
UK-headquartered Gorilla Technology Group has expanded its artificial intelligence infrastructure collaboration with Yotta Data Services through a project valued at approximately $2.8 billion, according to a company statement reported by The Economic Times. Under the agreement, an additional 20,736 B300 GPU cards will be deployed across India to strengthen large-scale AI compute infrastructure, with deployment expected to be completed by September 30, 2026. The expansion builds on an earlier framework between the two firms involving around 640 high-performance servers equipped with more than 5,000 GPUs for AI workloads. NVIDIA is expected to account for nearly half of the offtake under the latest tranche through a four-year commitment linked to establishing one of the Asia-Pacific region’s largest NVIDIA DGX Cloud clusters in India.
Sunil Gupta, co-founder, managing director and CEO of Yotta Data Services, said the collaboration is helping accelerate the company’s AI infrastructure development to meet growing hyperscale, sovereign and enterprise demand within India. Yotta currently operates hyperscale data centre parks in Panvel near Navi Mumbai and Greater Noida in Delhi NCR. The project highlights India’s growing importance as an AI infrastructure hub in the Asia-Pacific region and signals increasing opportunities for non-Indian technology firms, chipmakers, cloud providers and infrastructure companies seeking partnerships in India’s rapidly expanding AI and semiconductor ecosystem.
Editor’s Note: Gorilla Technology Group has expanded its AI infrastructure partnership with Yotta Data Services through a $2.8 billion project that will deploy over 20,000 GPUs across India by September 2026, including one of Asia-Pacific’s largest NVIDIA DGX Cloud clusters. The initiative strengthens Yotta’s hyperscale data centres in Panvel and Greater Noida, positioning India as a rising AI infrastructure hub and opening new opportunities for global technology firms and chipmakers.
India Intensifies Talks with US, Anthropic Over Access to Advanced AI Model ‘Mythos’
India has intensified discussions with the United States administration and AI company Anthropic after being excluded from the initial access programme for Mythos, the company’s advanced artificial intelligence model that has raised concerns over cybersecurity and critical infrastructure protection. According to officials cited by Economic Times, the Centre is exploring mechanisms to ensure Indian firms receive fair access to the model while safeguarding sensitive sectors such as banking, telecom and power infrastructure. Anthropic reportedly claims Mythos is capable of rapidly identifying and exploiting zero-day vulnerabilities — hidden software flaws that attackers can misuse before developers detect them — across operating systems, browsers and other widely used digital platforms.
Finance Minister Nirmala Sitharaman said the issue was being addressed at the highest levels, with the Ministry of Electronics and IT holding discussions with the US administration, Anthropic and companies currently testing the model under Project Glasswing, a restricted programme involving around 40 firms, most of them based in the United States. Indian officials and cybersecurity experts have expressed concern over the possibility of powerful AI tools being concentrated among select private players despite their implications for national security. Agencies including CERT-In and the National Critical Information Infrastructure Protection Centre have reportedly been asked to strengthen preparedness measures and review vulnerabilities in critical systems. The developments also highlight growing challenges for non-Indian companies operating globally, as advanced AI systems with dual-use cybersecurity capabilities are expected to reshape international regulations, cross-border technology access, corporate cyber defence strategies and critical infrastructure risk management.
Editor’s Note: India is pressing the US administration and Anthropic for fair access to Mythos, the company’s advanced AI model with powerful cybersecurity capabilities, after being excluded from its initial testing programme. Officials and experts warn that concentrating such tools among select private players poses national security risks, prompting agencies like CERT-In to strengthen preparedness while global firms face new challenges in regulations, technology access, and critical infrastructure protection.
AI-Driven Deflation Pressures Indian IT Sector Even as Innovation Opportunities Expand
Artificial intelligence-led deflation is beginning to weigh on India’s information technology services industry, with analysts warning of slower growth, pricing pressure and weaker demand for traditional outsourcing work. According to a report highlighted by ETCIO, AI adoption is reducing the need for conventional IT services as enterprises increasingly automate workflows and optimise operations using generative AI tools. Kotak Institutional Equities estimated a base-case deflation impact of around 3.5% on the industry, while some firms indicated even steeper pressure in specific segments. March-quarter earnings from major IT companies reflected the trend, with softer revenue growth and delayed programme ramp-ups contributing to cautious guidance across the sector.
Despite the near-term challenges, the report noted that AI-driven disruption is also opening new avenues for innovation and technology spending. Demand is expected to grow in areas such as data architecture, AI governance, automation frameworks and agentic workflows, with mid-tier firms viewed as better positioned to adapt quickly to these shifts. Industry leaders believe that while AI is compressing margins in routine IT services, it is simultaneously creating opportunities for high-value transformation projects and product-led offerings. The evolving landscape is also relevant for non-Indian companies, particularly global enterprises and technology providers that rely on Indian IT partners, as AI-led restructuring is expected to reshape outsourcing models, pricing strategies, talent requirements and cross-border digital transformation investments worldwide.
Editor’s Note: AI adoption is creating deflationary pressure on India’s IT services industry, with slower growth, pricing challenges, and weaker demand for traditional outsourcing. At the same time, it is driving new opportunities in areas like data architecture, AI governance, and automation frameworks, positioning mid-tier firms to adapt faster and enabling high-value transformation projects and product-led offerings.
UPI Completes Decade of Growth, Reshaping India’s Digital Payments Ecosystem
India’s Unified Payments Interface (UPI) has completed a decade of operations, emerging as one of the world’s largest and fastest-growing digital payment systems while significantly transforming the country’s financial ecosystem. According to an ETGovernment report, UPI has evolved from a digital payments initiative into critical public digital infrastructure, enabling seamless real-time transactions across banks, merchants and consumers. The platform has seen exponential adoption across urban and rural India alike, driven by smartphone penetration, fintech innovation and government-backed digital inclusion efforts. UPI’s ease of use, interoperability and low transaction costs have helped accelerate cashless payments, supporting millions of small businesses, street vendors and consumers in daily transactions.
The report noted that UPI’s success has also strengthened India’s position as a global model for digital public infrastructure, with several countries and financial institutions studying or partnering on similar frameworks. The system continues to expand through innovations such as credit integration, cross-border payments and enhanced merchant services, further deepening its role in India’s digital economy. The rapid scale and maturity of UPI are also increasingly relevant for non-Indian companies, including global fintech firms, banks, payment processors and technology providers, as India’s digital payments architecture is influencing international discussions around interoperable payment systems, financial inclusion, low-cost transaction networks and public digital infrastructure models.
Editor’s Note: UPI has completed 10 years as one of the world’s largest digital payment systems, transforming India’s financial ecosystem through real-time, low-cost transactions that support millions of businesses and consumers. Its success has positioned India as a global model for digital public infrastructure, with ongoing innovations like credit integration and cross-border payments influencing international frameworks and fintech partnerships.
India-New Zealand Free Trade Agreement Opens Path for $20 Billion Investment Push
India and New Zealand have signed a landmark Free Trade Agreement (FTA) aimed at strengthening bilateral trade, investment and workforce mobility while deepening economic ties in the Indo-Pacific region. According to an ETGovernment report, the agreement grants duty-free access for 100% of Indian exports to New Zealand from the date the pact comes into force, benefiting sectors such as textiles, apparel, leather, footwear, engineering goods, processed foods and gems and jewellery. The deal was signed in New Delhi by Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay. India has also secured access to critical manufacturing inputs including coking coal, wooden logs and metal scrap, while sensitive sectors such as dairy, onions, sugar and edible oils remain protected from tariff liberalisation.
The agreement also expands opportunities in services and talent mobility, with New Zealand offering market access across 118 service sectors and creating visa pathways for 5,000 Indian professionals, alongside extended post-study work opportunities for Indian students. A major highlight of the pact is New Zealand’s commitment to facilitate investments worth $20 billion into India over the next 15 years in areas including manufacturing, renewable energy, infrastructure, startups and emerging technologies. The FTA reflects India’s broader strategy of pursuing targeted bilateral trade agreements amid shifting global supply chains and economic uncertainty. The development is also significant for non-Indian companies, particularly multinational manufacturers, exporters, logistics firms and technology providers, as the agreement is expected to create new cross-border investment opportunities, diversify Indo-Pacific supply chains and improve market access for businesses operating across India, Oceania and related regional trade networks.
Editor’s Note: India and New Zealand have signed a landmark FTA granting duty-free access to all Indian exports to New Zealand while protecting sensitive sectors like dairy and edible oils. The pact also expands services and talent mobility, includes $20 billion in planned New Zealand investments, and is expected to boost Indo-Pacific supply chains and cross-border business opportunities.
India Eases FDI Rules for Foreign Firms with Limited Chinese Stakes
India has relaxed foreign direct investment (FDI) norms for overseas companies with up to 10% Chinese or Hong Kong shareholding, allowing them to invest through the automatic route in sectors where such investments are already permitted without prior government approval. According to an Economic Times explainer, the revised rules came into effect from May 1, 2026, through amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. The move marks a calibrated easing of restrictions introduced under Press Note 3 in 2020, when India tightened scrutiny of investments from countries sharing a land border with India following heightened geopolitical tensions and concerns over opportunistic acquisitions during the Covid-19 pandemic.
The updated framework clarifies that foreign entities with non-controlling Chinese or Hong Kong ownership below the 10% threshold can invest without seeking government clearance, although the relaxation does not apply to companies registered in China, Hong Kong or other neighbouring countries sharing land borders with India. The government has also introduced expedited approvals for certain manufacturing-related sectors including electronic components, capital goods and polysilicon, while maintaining requirements that majority ownership and control remain with Indian residents in sensitive cases. Officials and industry experts believe the changes could improve capital inflows, ease investment bottlenecks and support India’s manufacturing ambitions without fully diluting national security safeguards. The policy shift is also significant for non-Indian multinational firms, private equity investors and global funds with minority Chinese participation, as it offers greater regulatory clarity and easier access to India’s growing market while reshaping investment structuring strategies for companies operating across global supply chains.
Editor’s Note: India has eased FDI rules to allow overseas firms with up to 10% Chinese or Hong Kong shareholding to invest via the automatic route in permitted sectors without prior approval. The move, effective May 1, 2026, aims to boost capital inflows and manufacturing while maintaining national security safeguards, offering greater clarity for global investors with minority Chinese participation.