Delta Electronics Invests $500 Million in India, Expands Krishnagiri Facility
Taiwan-based Delta Electronics is reinforcing its commitment to India with a $500 million investment under the Make in India initiative, announced in 2015, to enhance its local manufacturing and innovation capabilities. Speaking at Elecrama 2025 in Greater Noida, Benjamin Lin, President of Delta Electronics India, emphasized India’s strategic importance in the company’s growth. The investment includes expanding its Krishnagiri facility, which will support electric mobility solutions such as fast EV charging infrastructure, telecom industry solutions like direct current converters and rectifiers, and energy-efficient solutions for data centers. A part of this expansion is expected to be operational by the end of 2025.
This investment not only strengthens India’s role in smart manufacturing and energy transformation but also sets a benchmark for global industry standards. Delta Electronics also showcased its latest automation solutions, including the D-Bot series collaborative robots designed for safer factory automation and a high-efficiency 240kW direct current fast EV charger with advanced connectivity features. For non-Indian companies, this move underlines India’s growing potential as a global manufacturing hub, providing opportunities for collaboration and supply chain integration in the rapidly expanding industrial and clean energy sectors.
Editor’s Note: Delta Electronics is investing $500 million in India under the Make in India initiative to expand its Krishnagiri facility, focusing on electric mobility, telecom, and energy-efficient solutions. The investment highlights India’s strategic importance for smart manufacturing and energy transformation, with part of the expansion expected by the end of 2025. Delta also showcased new automation solutions, including collaborative robots and a high-efficiency EV charger, emphasizing India’s role as a global manufacturing hub.
Murata Eyes India for Expansion Amid Global Supply Chain Shift
Kyoto-based Murata Manufacturing Co., a leading supplier of Multilayer Ceramic Capacitors (MLCCs), is considering expanding its production to India as part of a broader realignment of global supply chains. With increasing demand in India and its key clients, including Apple and Samsung, diversifying their manufacturing beyond China, Murata has rented a facility in Tamil Nadu’s OneHub Chennai Industrial Park. The company plans to begin packaging and shipping capacitors by April 2026, assessing long-term demand before committing to a full-scale factory. However, Murata President Norio Nakajima cited infrastructure challenges as a key reason for delaying integrated production. The move aligns with India’s growing consumer electronics market and government incentives aimed at boosting domestic manufacturing.
For non-Indian companies, Murata’s shift highlights the growing importance of India as a manufacturing hub, particularly for electronics and AI-driven components. With smartphone production projected to grow 3% annually and AI-driven server demand on the rise, companies across sectors may benefit from India’s skilled workforce, improving infrastructure, and policy support. However, the decision not to expand in the U.S. underscores the continued dominance of Asia as the core assembly region for electronic components before global distribution.
Editor’s Note: Murata Manufacturing is considering expanding its production to India, renting a facility in Tamil Nadu’s OneHub Chennai Industrial Park to meet growing demand from clients like Apple and Samsung. The move aligns with India’s growing electronics market and government incentives, though infrastructure challenges have delayed full-scale production plans.
India’s Roadmap to a $23–$35 Trillion Economy by 2047: Key Sectors and Strategies
India is poised for a major economic transformation, aiming for an annual growth rate of 8%–10% to transition into a globally competitive, export-driven economy. A strategic focus on five key sectors—electronics, energy, chemicals, automotive, and services—could drive this shift, aligning with global trends and sustainability goals. Advancements in AI, quantum technology, and digital manufacturing are expected to play a crucial role, alongside infrastructure investments and workforce development. By 2047, services are projected to contribute 60% of GDP, while manufacturing growth could position India as a global industrial hub. Addressing skill gaps, enhancing female workforce participation to 40%–50%, and reducing reliance on imports through local production are critical enablers of this vision.
For non-Indian companies, this transformation presents significant opportunities and strategic imperatives. India’s expanding manufacturing base and policy focus on Free Trade Agreements (FTAs) could open doors for global partnerships in high-tech sectors. Multinational firms investing in AI-driven R&D, green energy, and smart mobility solutions could benefit from India’s innovation ecosystem and cost advantages. As the country strengthens its role in global supply chains, businesses worldwide may find new avenues for collaboration in India’s growing economy.
https://www.bain.com/insights/india-2047-transforming-india-into-a-tech-driven-economy
Editor’s Note: India aims for an annual growth rate of 8%-10% to become a globally competitive, export-driven economy by 2047, focusing on sectors like electronics, energy, chemicals, automotive, and services. Advancements in AI, quantum technology, and digital manufacturing, along with infrastructure and workforce development, are key to this transformation, with services contributing 60% of GDP. This shift offers global opportunities for multinational firms in high-tech sectors, as India strengthens its manufacturing base and integrates into global supply chains.
India Slashes EV Import Tariffs to 15%, But Ties Incentives to Local Manufacturing
India has announced a significant reduction in import tariffs for electric vehicles (EVs), cutting them from nearly 100% to 15% for automakers willing to invest at least $500 million in domestic production. However, the government’s draft policy restricts how much of this investment can go toward charging infrastructure, capping it at 5%. This move underscores India’s push to develop local manufacturing while limiting immediate expansion of charging networks, a decision that could impact companies like Tesla, which is set to enter the Indian market through direct imports. The new policy also mandates automakers to achieve a minimum turnover of $577 million by the fourth year and $866 million by the fifth year to qualify for reduced tariffs on up to 8,000 EVs annually.
For non-Indian companies, this policy presents both opportunities and challenges. The lower import duties could ease market entry for global EV makers, but the stringent local investment requirements may necessitate long-term commitments. Automakers looking to establish a footprint in India will need to balance manufacturing priorities with the country’s evolving charging infrastructure. Companies investing in India’s EV ecosystem could benefit from a rapidly growing market but must navigate regulatory constraints and localized production mandates to capitalize on the incentives.
Editor’s Note: India has reduced EV import tariffs from nearly 100% to 15% for automakers investing at least $500 million in local production, with strict limits on charging infrastructure investment. The policy requires automakers to meet specific turnover targets to qualify for reduced tariffs on up to 8,000 EVs annually. This presents both opportunities and challenges for global EV makers, as they must balance local manufacturing with the country’s developing charging network and regulatory requirements.
India Launches $57.58 Million Fund to Boost Private Space Innovation
India’s space regulator, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), has introduced a ₹500 crore ($57.58 million) Technology Adoption Fund to support early-stage space technology commercialization and reduce dependence on imports. The fund will cover up to 60% of project costs for startups and small businesses and 40% for larger companies, with a funding cap of ₹250 million per project. This initiative aligns with India’s broader strategy to open its space sector to private investment, a move that has already seen regulatory approvals for satellite internet providers and increased contracts for private firms in ISRO’s launch vehicle program.
For global space companies, India’s liberalized space policies present a significant opportunity to collaborate with local startups, form joint ventures, or invest in emerging technologies. With increasing government-backed funding, a growing private sector, and an emphasis on global partnerships, India is positioning itself as a competitive player in the commercial space market—offering cost-effective solutions and a skilled workforce for international firms looking to expand their presence.
Editor’s Note: India’s space regulator, IN-SPACe, has launched a ₹500 crore ($57.58 million) Technology Adoption Fund to support space technology commercialization, covering up to 60% of project costs for startups. This initiative is part of India’s strategy to open its space sector to private investment, with a focus on reducing import dependence and encouraging local innovation. For global space companies, India offers opportunities to collaborate with startups, invest in emerging technologies, and leverage government-backed funding and a skilled workforce.
India Keeps AI Regulations Flexible, Still in “Beta Phase”
India’s artificial intelligence (AI) regulations remain in a “beta phase,” with key government bodies—including the Ministry of Electronics and Information Technology (MeitY), Reserve Bank of India, NITI Aayog, Competition Commission of India, Department of Commerce, and the Telecom Engineering Centre—actively engaging in discussions on safe and ethical AI deployment. Rather than implementing strict laws, the government is focusing on “soft law” frameworks, emphasizing guidelines and principles that allow flexibility as AI technology evolves. A sector-specific regulatory approach is also under consideration, ensuring that AI governance aligns with industry-specific risks and requirements.
For international businesses, India’s evolving AI policy presents both opportunities and uncertainties. The absence of rigid regulations allows foreign AI firms to operate with fewer compliance barriers, fostering innovation and investment. However, as discussions continue, companies should stay prepared for sector-specific regulations that could impact data privacy, competition, and financial applications. With India positioning itself as a key player in the global AI landscape, multinational firms have a crucial window to engage with policymakers and help shape future AI governance in the country.
Editor’s Note: India’s AI regulations are still in a “beta phase,” with government bodies collaborating on safe and ethical AI deployment through flexible “soft law” frameworks. A sector-specific regulatory approach is being considered to align AI governance with industry risks and needs. For international businesses, this evolving policy presents opportunities for innovation, though companies should stay prepared for potential future regulations in areas like data privacy and competition.