Weekly News Updates-December 20 to December 26

India among the top 10 best-performing stock markets in the world; Government approved 746 applications under PLI scheme; DPIIT to collaborate with 24 subsectors; Tower resubmits semicon proposal; Government considers extending FAME II scheme for EV: EV adoption increases in India

India among the top 10 best-performing stock markets in the world in 2023

Indian stock markets got off to a rough start in early 2023, with a significant loss that resulted in a 52-week low. Subsequently, the benchmark indices experienced a remarkable comeback, bringing India into the list of top 10 globally performing markets.

The significant entry of both local and foreign capital is responsible for the Indian market’s boom. After substantial withdrawals in 2022, foreign portfolio investors increased their holdings of Indian shares by over $22 billion in 2023. In the same period, domestic institutional investors made additions totaling about $20 billion.

Indian stocks became the world’s second-best performing in 2022 despite large withdrawals of Foreign Portfolio Investments (FPIs). The achievement can be attributed to advantageous macroeconomic circumstances within the country and a record-breaking flow of $23 billion from institutional investors within the country.


Government approved 746 applications under PLI scheme till Nov for various sectors

Up till November 2023, the Union government has approved 746 applications for 14 important sectors under the production-linked incentive (PLI) scheme.

To improve India’s industrial capacity and exports, the ₹1.97 lakh crore PLI initiative for 14 sectors was announced.

According to the ministry of commerce and industry, beneficiary enterprises have established units in more than 150 districts spread across 24 states, and as of September, investments of ₹95,000 crore have been reported.

The ministry stated that the investments have generated around 6.4 lakh direct and indirect jobs and ₹7.80 lakh crore in sales or output.


Editor’s Note: The Indian government’s approval of 746 applications under the Production Linked Incentive (PLI) scheme until November is noteworthy. This initiative reflects India’s commitment to boost manufacturing across various sectors, signaling potential opportunities for collaboration and investment. Taiwanese businesses may find this development interesting, as it could open doors for partnerships and participation in India’s growing market, fostering economic ties between the two nations.

Make in India 2.0: DPIIT to collaborate with 24 subsectors to increase manufacturing, exports, cut imports

According to an official statement, the department for promotion of industry and internal trade (DPIIT) is collaborating with 24 sub-sectors, such as textiles, aluminium, furniture, and agrochemicals, to increase exports, decrease imports, and support homegrown production.

As of Tuesday, the ministry of commerce and industry stated that ‘Make in India’ has achieved “significant” strides since its inception and is currently concentrating on 27 areas under ‘Make in India 2.0’.

The Department of Commerce is coordinating action plans for 12 service sectors, while the DPIIT is handling coordination for 15 manufacturing sectors.


Editor’s Note: Make in India 2.0, with the Department for Promotion of Industry and Internal Trade (DPIIT) collaborating with 24 subsectors, signifies a strategic move by the Indian government to bolster manufacturing, boost exports, and reduce dependency on imports. This initiative aligns with global economic trends and reflects India’s commitment to self-reliance and economic resilience. By fostering collaboration across diverse subsectors, the government aims to create a more robust and integrated manufacturing ecosystem. Such comprehensive efforts are likely to enhance India’s competitiveness on the global stage and attract increased foreign investment, potentially contributing to the country’s economic growth and stability.”

Israeli chipmaker Tower resubmits semicon proposal

According to reports, Tower Semiconductors has resubmitted its bid to build a 65 nm and 40 nm semiconductor fabrication facility in India. According to a report by The Economic Times (ET), Next Orbit Ventures, Tower Semiconductors’ former joint venture partner, has taken legal action in response to the move. It is considering suing the company for presenting a new proposal with a different partner.

According to reports, Tower Semiconductors’ most recent proposal would involve a joint venture with the BC Jindal group, a significant producer of goods for packaging and labelling. While acknowledging that it is working on a semiconductor project, the BC Jindal group has not disclosed any further information. This is Tower Semiconductors’ second effort to open a facility in India for the production of semiconductor chips.


Editor’s Note: It reflects the continued interest of global players in India’s semiconductor ecosystem. India has been actively working to promote semiconductor manufacturing through various initiatives. The resubmission could potentially align with India’s goals of attracting foreign investments, technology collaborations, and fostering a robust semiconductor industry domestically. This development may be seen as a positive indicator of India’s attractiveness as a destination for semiconductor manufacturing and technological advancements.

Government considers extending FAME II scheme for EV to FY25

According to a report released on Monday, the Centre may decide to continue the second phase of FAME (Faster Adoption and Manufacturing Electric Vehicles) for EV manufacturing beyond the upcoming fiscal year in an effort to support manufacturers until the FAME III scheme is authorised. According to Economic Times, the administration is probably going to ask for more funding for the flagship scheme in the interim budget.

The Center’s eagerness to promote electric mobility is evident from the extension. The FAME initiative, which offers subsidies for the purchase of electric vehicles, is essential in fostering sustainable growth.


Editor’s Note: The reported decision to extend the second phase of FAME (Faster Adoption and Manufacturing of Electric Vehicles) in India beyond the upcoming fiscal year reflects the government’s ongoing commitment to promoting electric mobility. By providing continued support for electric vehicle manufacturers until the authorization of FAME III, the administration acknowledges the pivotal role of subsidies in driving sustainable growth in the electric vehicle sector. The anticipated request for additional funding in the interim budget underscores the importance of sustained financial backing to accelerate the adoption of electric vehicles and advance India’s goals in the realm of clean and green transportation.

EV adoption increases to 14.33 lakh out of total 2.27 crore vehicles sold in 2023

The adoption of electric cars (EVs) in India has increased dramatically, accounting for 14.33 lakh of the 2.27 crore vehicles sold in 2023—a notable step towards sustainable mobility. Leading the charge on the electric vehicle (EV) revolution, the Ministry of Heavy Industries has put in place three effective schemes to boost demand and encourage the production of EVs.

The minister stated that the number of EVs manufactured and used this year has climbed from 10,25,118 to 14,33,545 due to various incentive schemes. Compared to other conventional vehicles, the ratio of EVs to other vehicles was 0.0631, a marginal increase from 0.0475 the year before.