Retain Import Duties on Smartphone Components: GTRI
According to a GTRI report, the government shouldn’t cut import duties on electronic components used to make smartphones in the upcoming budget because the current tariff structure has already shown to be effective and modifying it might harm domestic production.
According to the Global Trade Research Initiative (GTRI), keeping tariffs at current levels will support long-term development in India’s expanding smartphone market while balancing industrial expansion.
The suggestion runs counter to the industry group India Cellular and Electronics Association (ICEA), which claims that lowering import duties on parts for mobile phones can help strengthen domestic manufacturing, enhance exports, and raise domestic handset production by 28% to $82 billion.
Editor’s Note: The Global Trade Research Initiative’s (GTRI) report presents a contrasting perspective on the government’s potential decision to reduce import duties on electronic components for smartphone manufacturing in the upcoming budget. The GTRI argues that maintaining the current tariff structure is essential for supporting long-term development in India’s smartphone market and ensuring a balanced industrial expansion. This stance diverges from the viewpoint of the India Cellular and Electronics Association (ICEA), which advocates for a reduction in import duties on mobile phone components.
Exports of electronics increased by a record 22% between April and December
India’s electronics exports saw an impressive 22.24% growth in the first nine months of FY24, breaking the US$ 20 billion mark. Shipments of smartphones, led by Apple’s iPhone, increased significantly, which was the main cause of the spike. The India Cellular and Electronics Association (ICEA) reports that from April to December 2023, mobile phone exports made up 52% of all electronics exports, or US$ 10.5 billion. By contrast, the value of electronics exported in FY23 was US$ 23.6 billion, of which US$ 11.1 billion, or 43%, came from mobile phones.
Notably, the significant increase in electronics and mobile exports during the current fiscal year can be attributed in large part to iPhones.
Exports of iPhones exceeded US$ 7 billion in December 2023, accounting for 35% of all electronics exports and a remarkable 70% of all mobile exports from the country in the nine months preceding December.
https://www.ibef.org/news/electronics-exports-grow-at-record-22-in-april-december
India’s first indigenous GenAI ‘BharatGPT’ launched
BharatGPT, India’s first Large Language Model (LLM), was unveiled by CoRover.ai with the goal of revolutionizing AI conversations in 22 Indian languages. BharatGPT, positioned as an Indigenous Generative AI platform, is claimed by CoRover.ai to interface with both speech and text modalities, providing a distinctive answer to language diversity issues.
Thanks to the partnership with the National Hub of Language Technology (NHLT) under the Ministry of Electronics and Information Technology’s National Language Translation Mission (NLTM), the model claims integration for voice modality in over 12 Indian languages and text modality in 22 languages.
The CEO of BHASHNI, Amitabh Nag, emphasised the scalability and innovative use cases that were showcased in partnership with CoRover. He said that language tech innovations that leverage AI, ML, and NLP, like BharatGPT, would continue to drive new projects.
https://www.cnbctv18.com/business/coroverai-unveils-bharatgpt-genai-as-a-service-18862941.htm
Editor’s Note: CoRover.ai has launched BharatGPT, India’s first Large Language Model (LLM), aiming to transform AI conversations in 22 Indian languages. BharatGPT, positioned as an Indigenous Generative AI platform, supports both speech and text modalities. Through collaboration with the National Hub of Language Technology, it integrates voice modality in over 12 Indian languages and text modality in 22 languages, contributing to language diversity solutions.
Kerala, Karnataka, and Gujarat excel in startup ranking
Tamil Nadu, Kerala, Gujarat, and Karnataka were the top-performing states with a population of more than ten million. Of the states with less than 10 million people, Himachal Pradesh was adjudged the best.
As the number of unicorns has increased to 112 with a collective valuation of $350.71 billion, Commerce Minister Piyush Goyal stated on Tuesday that startups are essential to India’s goal of becoming a developed country by 2047.
According to figures from the commerce ministry until December 31, the number of registered start-ups in India increased to 117,254 across 57 business groups, with at least one woman director in 48% of them.
Samsung not to get incentive for smartphone production in FY22
According to reports, Samsung is unlikely to get production-linked incentives (PLI) for making smartphones in the scheme’s second year (fiscal 2022) since the South Korean electronics giant failed production targets.
However, the company stated that it has met its targets for that period and is currently in the process of making claims for the third year (FY23).
Hence, Samsung would lose incentives for FY22 that might have reached around ‘900 crore. Additionally, the development suggests that the corporation will only receive cashbacks for four years rather than the possible five years under the scheme.
Editor’s Note: Samsung is reportedly ineligible for production-linked incentives (PLI) in fiscal year 2022 for smartphone manufacturing in India due to falling short of production targets. While the company asserts it has met its goals for the period and is claiming incentives for the third year (FY23), the setback implies a potential loss of incentives amounting to around ₹900 crore for FY22. This development also suggests that Samsung may only receive cashbacks for four years instead of the anticipated five years under the PLI scheme.
Foxconn and HCL Group of India to partner for a chip testing plant
HCL Group and Taiwan’s Foxconn, opens new tab, will collaborate to build a semiconductor assembly and testing facility in India, the firms announced on Thursday.
The companies plan to establish an Outsourced Assembly and Testing (OSAT) facility in the South Asias nation.
An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductor chips.
With an investment of $37.2 million, Foxconn’s India division will hold a 40% share in the joint venture, according to a regulatory filing. HCL withheld their own financial details.
Editor’s Note: Foxconn, the Taiwanese multinational electronics contract manufacturer, is set to collaborate with the HCL Group of India to establish a chip assembly and testing plant. This strategic partnership aims to address the growing demand for semiconductor testing and contribute to India’s efforts in bolstering its electronics manufacturing ecosystem.