Weekly News Updates-December 26 to January 2

India fastest-growing major economy in 2024; Electronics manufacturing sector to be worth $115 bn in 2024; Plans are underway to create India-centric generative AI; Israel's chipmaker Tower resubmits proposal to set up chip fab; New EV policy to benefit global car makers; India to switch 800k diesel buses with electric over 7 years; Foxconn invests Rs. 461 crore in Bengaluru unit

India to remain fastest-growing major economy in 2024

India is expected to grow at a 6.2% in 2024, according to UN estimates, with significant growth in the industrial and services sectors as well as strong domestic demand.

According to the UN World Economic Situation and Prospects (WESP) 2024 study, which was released on January 4, South Asia’s gross domestic product is expected to grow by 5.2% in 2024, led by India, the region’s largest and fastest-growing economy.

By 2025, the GDP of India is expected to have increased to 6.6%. According to the report, India’s economy is expected to develop “strongly” at a rate of 6.2% this year, primarily due to robust public investment and resilient private consumption.


Editor’s Note: The UN’s projection that India will continue to be the fastest-growing major economy in 2024, with an estimated growth rate of 6.2%, is encouraging. The anticipated expansion, driven by robust public investment, resilient private consumption, and growth in the industrial and services sectors, reflects India’s economic resilience and potential. This positive outlook aligns with the country’s efforts to foster sustainable development and positions India as a key driver of economic growth in the South Asian region. The projected increase in India’s GDP to 6.6% by 2025 further underscores the nation’s promising economic trajectory.

Electronics manufacturing sector to be worth $115 bn in 2024

India’s electronics manufacturing industry is expected to increase by 15% by 2024 and reach a valuation of $115 billion. The focus of the industry’s players is on improving value addition concerning product development and components.

It is projected that mobile phone production, a major contributor to India’s electronics industry, will reach more than $50 billion by March 2024, from roughly $42 billion in the previous fiscal year.

With Google starting to manufacture Pixel smartphones in India in the first quarter of 2024, all of the big global players would be fully present in this country.


Editor’s Note: The projected growth of India’s electronics manufacturing sector to reach $115 billion by 2024, with a 15% increase, signifies the sector’s substantial potential and attractiveness for major players from Taiwan. The emphasis on enhancing value addition in product development and components aligns with India’s goal of becoming a hub for high-value electronics manufacturing. The anticipated surge in mobile phone production, particularly with major global players like Google manufacturing Pixel smartphones in India, reflects the country’s increasing importance in the global electronics market. This development bodes well for India’s economic landscape and underscores its role as a key player in the rapidly evolving electronics industry.

Plans are underway to create India-centric generative AI

A collaborative effort by eminent Indian academic institutions, government agencies, and private enterprises is currently in progress to create a multilingual, India-focused generative artificial intelligence (AI) system similar to ChatGPT.

The National Association of Software and Service Companies (Nasscom), Seetha Mahalaxmi Healthcare Private Ltd., Reliance Group’s Jio Infocomm, and other private companies back BharatGPT.

Jio is searching for large language model (LLM) and generative pre-trained transformers (GPT)-based solutions for its retail and telecom companies, though this is a big project. The company intends to use open-source GPTs that have been customized to meet its needs.


Israel’s chipmaker Tower resubmits proposal to set up 65 nm, 40 nm chip fab

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 bid with a different partner.

In late October, Minister of State for IT and Electronics and four to five Indian companies were met by a Tower management team led by CEO Russell C. Ellwanger.

As per the ET report, Tower Semiconductors’ most recent proposal would involve. While acknowledging that it is working on a semiconductor project, the BC Jindal group has not disclosed any further information.


New EV policy to benefit global car makers

According to a senior official, the Union government is engaging with global carmakers before releasing its new electric vehicle (EV) legislation.

An official stated that talks for a new EV policy to increase manufacture and investment are now in progress. The goal of the negotiations is to include all countries, including Indian, Italian, and Korean carmakers. The official did not provide a date for the new policy’s introduction, which intends to increase EV production and draw investors to the industry.

In order to establish a manufacturing base in India and support the growth of the EV ecosystem there, New Delhi is in talks with the massive EV manufacturer Tesla. Apple and smartphone manufacture employ a similar approach.


India to switch 800k diesel buses with electric over 7 years: FAME III

According to a report by The Economic Times (ET), government is planning to replace 800,000 diesel buses—roughly one-third of all buses on the road—with electric ones over the course of the next seven years. With this project, the public transport system will be transformed, environmental sustainability efforts will be supported, and India’s EV industry will grow.

According to government sources cited by ET, the replacement plan would entail deploying 200,000 electric buses for state transport undertakings (STUs), 550,000 for commercial operators, and 50,000 for employee and school transit by 2030.

Along with addressing environmental issues, replacing diesel buses would help India’s EV industry grow and will be in line with the larger Faster Adoption and Manufacturing Electric Vehicles (FAME) incentive plan. The Ministry of Heavy Industries launched the FAME India scheme in 2015.


Editor’s Note: The above 2 reports are on potentials in EV sector. The inclusive strategy involving discussions with Indian, Italian, and Korean carmakers, as well as negotiations with major EV manufacturer Tesla, signals India’s commitment to creating a conducive environment for global players in the burgeoning EV market. Additionally, the ambitious plan to replace 800,000 diesel buses with electric ones over seven years under FAME III not only underscores India’s commitment to environmental sustainability but also presents a significant opportunity for growth in the country’s EV industry. This move aligns with broader efforts to transform public transport and aligns with the objectives of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) incentive plan initiated by the Ministry of Heavy Industries in 2015.

Foxconn invests Rs. 461 crore in Bengaluru unit

According to a regulatory filing, Foxconn has invested USD 55.29 million, or around Rs 461 crore, in Bengaluru-based Foxconn Precision Engineering Private Limited. Through Foxconn Singapore Pte Limited, a subsidiary established in Singapore, the company has made the investment.

According to the filing, Foxconn Singapore has acquired about 46,08,76,736 shares at a price of Rs 10 each, for a total of around USD 55.29 million (Rs 460.87 crore). Approximately six months ago, Foxconn Precision Engineering was incorporated.

Foxconn proposed in July to establish a Rs 8,800-crore supplementary plant at the Devanahalli Information Technology Investment Region in Karnataka, in addition to its existing operation.https://www.moneycontrol.com/news/business/foxconn-invests-rs-461-crore-in-bengaluru-unit-11965041.html