Weekly News Updates-India Aug 30 to Sep 5

Laptop licensing to be extended by a year; Global IT manufacturers pushing for the removal of import restrictions; licenses to ease importers of laptops and PCs; Apple, Samsung may not make laptops in India; New postings of IAS officers announced, S. Krishnan named as MeitY secretary; Optiemus and Corning form a JV to establish the production of finished cover glass in India; India's GDP growth at a four-quarter high of 7.8% in Q1 FY2

Laptop licensing likely to be extended by a year

The government is expected to extend the existing deadline, which begins on November 1, for implementing the licensing of laptops, tablets, personal computers, and servers by an additional 9 to 12 months. A year should pass before results on the domestic manufacturing front become apparent, according to sources who claim that discussions between the government and industry are at an advanced stage on this front. This is due to the fact that the response to the Rs 17,000 crore IT hardware production-linked incentive scheme has been quite positive.

The growth in smartphone and electronic exports in FY23 might be negatively impacted if any form of equivalent retaliatory import restrictions are imposed by nations. This has weighed in favor of delaying the November 1 deadline.


Global IT hardware manufacturers call for the easing of import restrictions

Major manufacturers of IT hardware are pushing for the removal of import restrictions in order to promote more efficient international trade. Computer makers HP, Dell, Acer, and Asus have urged the government to remove the import restrictions on IT hardware or to give enough time for a local ecosystem to form before enforcing the licensing requirement. These companies have submitted applications for the revised production-linked incentive (PLI) scheme.

Industry experts stress the requirement for a supportive trading environment to guarantee the continuous availability of essential technological components.

The demand for more relaxed import laws, as the sector navigates supply chain difficulties, highlights the coordinated efforts to sustain the flow of IT gear and support the sector’s growth and innovation.


Comm min developing standards for laptop and computer importers to provide licenses in an efficient manner

According to an official, the DGFT division of the commerce ministry is developing criteria to make it easier for importers of laptops and PCs to obtain licenses. The Directorate General of Foreign Trade (DGFT) will need importers to obtain a license as of November 1 as a result of the government’s decision to place import restrictions on these electronic devices.

India will be able to keep a close watch on the countries from which the products are coming, thanks to the import restrictions.

At a time when India has identified electronics manufacturing as a key priority sector for its future growth objectives and is expecting to attract investments from multinational corporations trying to diversify their operations outside of China, the move will also boost domestic manufacturing.


Apple, Samsung may not make laptops in India owing to small market

Two of the largest global tech corporations, Apple and Samsung, have again decided not to take part in a government scheme in India. The IT Hardware production-linked incentive (PLI) scheme is a scheme that encourages businesses to produce their goods in India. These tech giants, though, have opted not to apply. About 40 electronics businesses, including Dell, Lenovo, and HP, among others, just recently consented to take part in the government’s PLI  scheme.

The main reason they decided against qualifying for the PLI scheme is that there is a far smaller market for laptops and personal computers in India than there is for smartphones, according to a Financial Express report. Only 2.4% of the country’s total demand is for laptops and desktop computers, compared to a far higher market share for smartphones. Additionally, Apple and Samsung don’t rely primarily on laptops and PCs, so moving their manufacture from China and Vietnam to India wouldn’t be financially advantageous.


New postings for 18 IAS officers announced, S. Krishnan is the MeitY secretary

The Appointments Committee of the Cabinet (ACC) approved new postings for as many as 15 IAS officers at the Centre while upgrading three IAS to the position of special secretaries. S Krishnan and Neeraj Mittal have been appointed as secretary the Electronics and Information Technology Ministry (MeitY) and the Department of Telecommunications respectively.

Alkesh Kumar Sharma, an IAS officer from the 1989 batch, retired on August 31. S Krishnan took over as his replacement, while Neeraj Mittal assumed the charge as the secretary of the Department of Telecommunications. In the past, Mittal has also served as the managing director and CEO of Guidance Tamil Nadu as well as the principal secretary for the government of Tamil Nadu’s information technology department.


Editor’s Note: The Secretary of MeitY(Ministry of Electronics & IT) is changed. MeitY works very closely with TCA and Taiwan as Electronics and IT are integral in the bilateral business relations.

Optiemus and Corning form a JV to establish the production of finished cover glass in India 

In order to develop the nation’s first production facility for creating finished cover glass for the mobile consumer electronics market, Corning and Noida-based manufacturing business Optiemus launched their joint venture (JV) on Friday.

According to Ashok Kumar Gupta, Chairman of Optiemus Infracom Limited, Optiemus will control 70% of the shares in this JV and Corning, a company based in the United States, would purchase the remaining shares.

The new manufacturing facility for finished cover glass is anticipated to open in 2024, and Noida is most likely the location. The finished cover glass will be used in the consumer electronics sector in items like the front and back of smartphones, smartwatches, laptops, and other devices.

Additionally, Mr. Gupta stated that Optiemus would submit an application for incentives that are crucial to the project.


Editor’ Note: This is going to boost the local manufacturing on items such as Smartphones, smartwatches, laptops, and other devices. It is also going to be viewed as attracting more global players in the device segment to consider make in India.

India’s GDP growth accelerated to a four-quarter high of 7.8% in Q1 FY24

According to figures issued by the National Statistical Office (NSO) on Thursday, India’s Gross Domestic Product (GDP) increased to a four-quarter high of 7.8 percent on an annual basis in the June quarter of FY24, in line with predictions.

Stronger consumer demand, more activity in the services sector, and increased spending by the federal and state governments are all factors contributing to the expansion.

As opposed to a growth of 27.7% in the first quarter of FY23, the nominal GDP or GDP at Current Prices in the quarter increased by 8.0%.


Editor’s Note: Keeping a watch on the economic development of India. The data shows a strong positive economic outlook.