Weekly News Updates-India May 17 to May 23

IT hardware market to grow 2.5 times; Centre approves the updated PLI plan; Wistron departs the Indian Apple business; Center intends to regulate AI platforms; Taiwan conducts its first Mandarin TOCFL test in India; India’s PC Market Declined by 30.1% YoY; 27% of Indian businesses are confident they are ready for ESG; 2000 Rs notes to be discontinued; No TCS on debit card, credit card forex payments of up to Rs 7 lakh

IT hardware market to grow 2.5 times to $25bn

According to Rajeev Chandrasekhar, minister of state for IT and electronics, India will emerge as the engine that will power the growth of products like laptops, computers, and servers as the IT hardware industry emerges from recession in Europe and the US. The market is anticipated to grow more than 2.5 times in the next three years and cross $25 billion in size.

Top global manufacturing businesses may consider manufacturing investments in India due to initiatives like the PLI plan for IT hardware and a high demand.

Last fiscal, the market for IT hardware reached a close of almost $10 billion. The growth from here is now between 17 and 18%.

‘IT hardware mkt to grow 2.5x to $25bn’ – Times of India (indiatimes.com)

IT hardware PLI 2.0: The Centre approves the updated PLI plan with an investment of Rs 17,000 crore

A revised production linked incentive (PLI) scheme for IT hardware was approved by the Union Cabinet on Wednesday with an investment of Rs 17,000 crore, more than tripling the amount for the original 2021 approval of the scheme. The programme will go into effect on July 1 with a cap on the maximum incentives offered to participating businesses.

Only two businesses, Dell and Bhagwati, were able to reach the goals for the first year (FY22) of the scheme’s first iteration, and the industry demanded a revised scheme with a larger budgetary investment.

The revitalised programme, according to Union Minister of Electronics and IT Ashwini Vaishnaw, might attract major international producers of IT gear to move their bases of operations to India and enhance domestic production of items like laptops, servers, and personal computers.

IT hardware PLI 2.0: Centre approves revised PLI scheme with Rs 17,000 cr outlay | Business News,The Indian Express

Wistron departs the Indian Apple business due to scale and work culture

Wistron is preparing to exit India. The Tata Group, which is conducting trials for building next iPhone 15 models in India, will soon purchase the company’s iPhone assembly facility in Kolar, close to Bengaluru.

Of Apple’s three international contract manufacturers, Wistron was the first to begin building iPhones in India in 2017. One of the main reasons the Taiwanese contract maker is leaving India, the second-largest smartphone market in the world, is that it is unable to enter further into Apple’s supply chain, including component production and vendor-managed inventory storage

There was also the problem of adjusting to the local workplace culture, which had previously emerged. Workers were protesting against allegedly unpaid salaries and long hours in December 2020 when violence broke out at the recently opened Kolar facility. According to a report, 400 senior production staff members staged a protest against management last week and demanded pay equity with junior contractual employees.

Wistron exits India Apple biz over scale, work culture, Telecom News, ET Telecom (indiatimes.com)

Center intends to regulate ChatGPT and other AI platforms: Ashwini Vaishnaw

At a time when authorities in several locations, including Europe and the US, have pushed for AI regulation, India is considering a legal framework for governing technology and AI-enabled platforms, such as ChatGPT.

According to IT Minister Ashwini Vaishnaw, the Union Government is apparently exploring a framework for AI regulation that handles issues including algorithm bias and copyrights.

The IT minister stated that several nations are investigating the expanding impact of AI platforms and that, following international discussions, a legal framework is required.

India planning to regulate AI platforms like ChatGPT: IT minister Ashwini Vaishnaw (organiser.org)

At IIT-Ropar, Jammu, Taiwan conducts its first Mandarin TOCFL test

Taiwan held the inaugural Test of Chinese as a Foreign Language (TOCFL) separately in Punjab and Jammu in the middle of May in response to Chandigarh University students’ requests for the Mandarin Chinese language test. As the global supply chain begins to move to India, demand for Mandarin in India has increased. Additionally, more and more work opportunities are appearing in businesses owned by Taiwanese enterprises with offices in India. To work at the managerial level, these companies are looking for Indian talent who can speak Mandarin Chinese. As a result, more students begin to practice their Mandarin.

On May 13, 2023, Chandigarh University and Indian Institute of Technology Ropar jointly administered the Test of Chinese as a Foreign Language (TOCFL) in India, which was hosted by the Education Division of the Taipei Economic and Cultural Centre in India. Of the 15 Indian students who took the test, 8 were from Chandigarh University and the other 7 were from Indian Institute of Technology Ropar.

Taiwan conducts its first Mandarin test TOCFL at IIT-Ropar, Jammu – Asian Community News

India’s PC Market Declined by 30.1% YoY: IDC

According to fresh data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, the India traditional PC market, which includes desktops, notebooks, and workstations, continued to drop ship only 2.99 million units, a decline of 30.1% year-over-year (YoY) in 1Q23 (Jan-Mar).

While there was increased demand for desktop computers in 1Q23, the notebook market continued to struggle as it fell by 40.8% year over year. Consumer spending fell by 36.1% YoY, mostly as a result of sluggish demand and negative market mood, while commercial spending fell by 25.1% YoY as a result of decreased/delayed procurement by large businesses and small businesses.

India’s PC Market Declined by 30.1% YoY in 1Q23 as Demand Continued to Drop, According To IDC

27% of Indian businesses are confident they are ready for ESG: Deloitte

According to a Deloitte poll on ESG preparedness in India, which was issued on Thursday, only 27% of Indian businesses are confident in their ability to meet ESG criteria. Only 15% of companies think their suppliers are ready to meet their ESG standards.

The findings were released at a time when ESG has transformed from a peripheral conversation to a crucial factor in investment decision-making and the need for green and sustainable growth has unquestionably become a pressing issue across sectors.

Over 70% of the 150 organizations in the study that were evaluated for their readiness for ESG policies, rules, disclosures, and compliance were listed on Indian stock markets. The analysis highlighted the difficulties facing Indian organizations, where there is a high level of commitment to ESG principles but a large gap in real implementation readiness.

Less than a third of Indian businesses confident of ESG preparedness: Deloitte Survey | Deccan Herald

India’s economy decides to discontinue the use of the Rs. 2000 note

The Central Bank announced that the highest denomination currency note currently in use in India will be discontinued. The 2016-released 2000-rupee note will continue to be accepted as legal money, however, individuals are urged to deposit or trade these notes by September 30, 2023.

In order to quickly replenish the amount of currency in circulation in the Indian economy after demonetization, 2000-rupee notes were issued in 2016.

The central bank has often stated that it wants to minimize the amount of high-value notes in circulation, and over the past four years, it has stopped producing 2000-rupee notes. The Reserve Bank of India explained its decision to discontinue these notes in its message by stating that “this denomination is not commonly used for transactions.”

What India’s decision to scrap its Rs 2000 note means for its economy – The Economic Times (indiatimes.com)

No TCS on debit card, credit card forex payments of up to Rs 7 lakh from July 1, 2023

The Ministry of Finance stated on Friday, May 19, that as of July 1, 2023, there will be no tax collected at source (TCS) on individual payments made with international debit and credit cards up to a total of Rs 7 lakh in a fiscal year, in response to complaints and concerns regarding the 20% TCS on credit card spending outside of India.

Concerns have been expressed about the application of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) starting on July 1, 2023, according to a statement issued by the finance ministry on May 19, 2023. It has been decided that payments made by an individual using their overseas debit or credit cards up to Rs 7 lakh per financial year will be exempt from the LRS limitations and as a result, will not incur any TCS in order to avoid any procedural uncertainty.

No TCS on LRS transactions upto Rs 7 lakh via international debit, credit cards from July 1, 2023 (adda247.com)