India limits import of laptops and PCs with immediate effect
According to government notice, imports of laptops, tablets, and personal computers have been stopped with immediate effect. This action was done to promote domestic manufacturing. Minister of State of information technology announced that new rules governing the import of laptops and tablets will be announced soon and that there will be a transition period. Along with extending the deadlines for import restrictions, it is anticipated that the government will grant businesses additional time to apply for licenses to import laptops and other equipment.
In the months of April to June, imports of electronics, which include laptops, tablets, and personal computers, totaled $19.7 billion, an increase of 6.25% from the same time last year. A significant majority of the laptops sold in the Indian market are imported from nations like China by Dell, Acer, Samsung, LG, Panasonic, Apple Inc., Lenovo, and HP Inc.
Editor’s Note: Update: On August 4, the Indian government announced it would defer the implementation of import restrictions on laptops, tablets, personal computers (PCs), and other electronic items falling under the HSN 8741 category to October 31, 2023. These are amendments to the DGFT notification dated August 3, 2023. Taiwanese companies who are into business which covers the items mentioned would need to be followed as per the guidelines.
India analyses its production incentive scheme amid overhaul push: Report
According to reports, India’s top bureaucrat evaluated a production-linked incentive (PLI) scheme in response to business demands for quicker payouts to enhance the program that seeks to increase investment in manufacturing. The scheme is essential to growing India’s overall economy, which has been suffering from a lack of private investment for almost ten years and is having difficulty producing enough jobs, particularly in manufacturing.
Up to March of this year, incentives totaling 34.20 billion rupees ($413.29 million) had been claimed. According to a government study seen by Reuters, little has been paid out to companies in six industries, including specialty steel products, solar modules, and automobile components.
The government met with major international companies like Foxconn, Samsung Electronics, Wistron, and Reliance Industries as well as others who stand to gain from the scheme’s incentive payouts in June as part of the ongoing examination.
The $24 billion scheme which was introduced in 2020 and covers 14 sectors from electronic goods to pharmaceuticals, has so far only proved successful in a few of them.
44 IT hardware manufacturers sign up for PLI sops
It has recently been reported that up to 44 hardware manufacturers have registered to manufacture in India under the production-linked incentive (PLI) plan, a few days after the government placed limitations on the import of laptops and tablets.
According to sources, these hardware manufacturers also include major international companies that have applied to establish a base in the nation.
Sources state that August 30 has been set as the deadline for submitting applications for the INR 17,000 Cr PLI plan for producing IT gear in the nation. Reports suggest that the government is optimistic that the hardware being produced under the PLI scheme would replicate the “success” attained in the manufacturing of mobile phones.
Editor’s Note: This news is reportedly emerged a few days after the government imposed restrictions on import of laptops and tablets. August 30 is the last date to apply for the PLI sops. The above 3 news articles show the move from India Government to increase local manufacturing with incentivization under PLI.
Draft National Deep Tech Startup Policy open for public consultation
A draft of the National Deep Tech Startup Policy (NDTSP) has been made available for public consultation till September 15, 2023.
In its 21st meeting, held on July 7, 2022, the Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC) recommended the formation of a National Consortium and a Working Group to develop a comprehensive policy framework to support the ecosystem for deep tech startups in India.
A draft version of NDTSP has been developed through an extensive multi-stakeholder consultative process involving startups, incubation centers, industry associations, academic institutions, and pertinent government agencies under the overall direction of the National Consortium, guided by the Expert Working Group.
Editor’s Note: Deep Tech is an area where Taiwan and India can collaborate for technology as well as for sourcing of components. Hence this Policy gets importance to be watched and followed in terms of its development and implementation, although the policy is now at a stage for public consultation.
Foxconn to invest $600 million in Karnataka to produce iPhone components and chip equipment
According to the government of the state of Karnataka, Foxconn would invest more than $600 million in India as part of a phone manufacturing project and separately a semiconductor equipment plant.
M. B. Patil, the minister of commerce for Karnataka, announced in a tweet that a Taiwanese company and the US chipmaker Applied Materials had committed to investing more than $360 million in a factory producing phone casing components and around $240 million in a project to manufacture semiconductor equipment.
According to Patil, the phone project will offer 12,000 people jobs, whereas the semiconductor factory will employ 1,000 people.
Tesla rents space in Pune for its first office in India
Tesla India Motor & Energy, a company run by Elon Musk, has rented office space in Viman Nagar’s Panchshil Business Park. This development occurs a short time after its senior executives allegedly met with Invest India representatives last week to discuss intentions to enter India and establish an electric vehicle manufacturing facility. With Tablespace Technologies, the business has a five-year lease for a 5,850 square foot office.
According to reports, both companies agreed on a 36-month lock-in period with a 5% annual escalation clause.
Apple India’s sales grow double digits to set a record for the June quarter
India is a top-performing market for iPhone maker Apple despite a 1% year-over-year (y-o-y) decline in Q3 revenue. Apple’s chief executive officer, Tim Cook, claims that the country’s operations saw double-digit y-o-y growth and established a quarterly record in the June quarter, driven by strong iPhone sales.
Cook revealed that Apple set a record in the June quarter, with revenues growing by double digits overall.
The company announced quarterly earnings per diluted share of $1.26, representing a 5% y-o-y gain, and quarterly revenue of $81.8 billion, a 1% y-o-y drop. The company also reported $94.8 billion in revenue and $1.52 in earnings per diluted share for the second quarter.