Weekly News Updates-January 3 -January 9

India rises ranks second at MSCI EM index weightage; Tamil Nadu in $4.4 billion deal with Pegatron and Tata; Foxconn is losing its long-time country head; India to host an EV battery plant for VinFast; Quality norms for electrical accessories get regulations; Indian Railways to get assistance from USAID/India

India rises to second spot in MSCI EM index weightage

In the MSCI Emerging Markets index, India has surged second place after China and confirm its appeal as an emerging market investment.

According to a new analysis from Nuvama Institutional Equities, India’s position in the MSCI Emerging Markets index increased significantly over the course of eight years, from 7% to 17.1%. It is expected to rise even more, to 20% by early 2024.

In the MSCI EM pack, India’s share remained constant at approximately 8% from October 2015 and October 2020. Nonetheless, India’s share has almost doubled since November 2020 and is now 17.1%.


Editor’s Note: The increased weightage in the index reflects India’s growing appeal as an emerging market investment destination. This development is likely to attract greater attention from international investors, signaling confidence in India’s economic prospects and stability. As India’s share in the MSCI EM index is anticipated to rise further, reaching 20% by early 2024, it presents a compelling case for FDI inflows. Investors seeking diversification and exposure to dynamic emerging economies are likely to view India as an attractive destination, potentially leading to an influx of foreign capital that can contribute to economic growth and development.

Tamil Nadu in $4.4 billion deal with Pegatron and Tata among other investors

Tamil Nadu, a state in southern India, announced on Sunday that it signed investment agreements totaling more than $4.39 billion with companies like Hyundai Motors, a major automaker, and Tata Electronics and Pegatron, suppliers to Apple.

As the tech giant prepares to shift some production away from China, Apple is depending on India as the next big growth engine. Pegatron is working towards a second factory in the country, where Tata Group started assembling iPhones last year.

At the time of signing of agreements, the state government said that Tata Electronics, a division of the Indian conglomerate, had committed to investing 120.8 billion rupees for mobile phone assembly operations.


Foxconn is losing its long-time country head Foulger

Just as the company is seeking to expand in South Asia, Foxconn Technology Group is losing a longstanding executive in India.

According to reports, Josh Foulger, the country head of Foxconn’s Bharat FIH division, is leaving the company after nine years. Reports stated that his last day will be this month and his future plans were not immediately apparent.

Bharat FIH gradually lost market share to Xiaomi as the Chinese company looked for more regional partners. As the government of the nation pushed manufacturers to collaborate more with Indian suppliers, Xiaomi added local competitor Dixon Technologies India Ltd. as a smartphone assembler last year.


India to host an EV battery plant for VinFast

According to Reuters and TechCrunch, VinFast, a Vietnamese company, plans to open its first production unit in Thoothukudi district, Tamil Nadu, India. This plant will include an EV and battery manufacturing facilities.

With a potential annual production capacity of up to 150,000 automobiles, the construction is anticipated to start in 2024 and generate between 3,000 and 5,000 job possibilities in the area. The battery facility’s capacity was not mentioned in the statement.

Tamil Nadu, the southernmost state of India, is a major center for the country’s automobile industry. Facilities are already in place for well-known businesses like BMW, Hyundai Motor, Renault-Nissan, and BYD as well as regional producers of electric two-wheelers like Ather Energy and Ola Electric.


Editor’s Note: As reported by Reuters and TechCrunch, this facility is set to encompass both EV and battery manufacturing, reflecting the growing importance of India in the global electric mobility landscape. Tamil Nadu, already recognized as a major center for the country’s automobile industry, hosts facilities for renowned global players like BMW, Hyundai Motor, Renault-Nissan, and BYD. This move by VinFast further solidifies Tamil Nadu’s status as an attractive destination for automotive investments, aligning with India’s broader push towards sustainable and eco-friendly transportation solutions.

Regulations imposed by the government on quality norms for electrical accessories

To reduce the import of sub-standard goods and increase domestic production of electrical accessories such as switch socket outlets and cable trunking, the government has established mandated quality standards.

On January 1st, 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) published the Electrical Accessories (Quality Control) Order, 2023.

This order prohibits the production, sale, trade, importation, and stocking of goods without the Bureau of Indian Standards (BIS) mark.


Editor’s Note: On January 1st, 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) introduced the Electrical Accessories (Quality Control) Order, 2023. This order aims to curtail the import of sub-standard electrical goods by mandating adherence to quality standards. A crucial aspect of the regulation is the prohibition of production, sale, trade, importation, and stocking of electrical accessories lacking the Bureau of Indian Standards (BIS) mark. This mark serves as a certification of adherence to specified quality norms, ensuring consumers have access to safe and reliable products. The government’s initiative aligns with the ‘Make in India’ campaign and is poised to foster a competitive landscape for domestic manufacturers.

Indian Railways to get assistance from USAID/India to fulfil Mission Net Zero Carbon Emission by 2030

The United States for International Development/India (USAID/India) and India signed a Memorandum of Understanding on June 14, 2023, to support Indian Railways in achieving Mission Net Zero Carbon Emission by 2030.

Through the MoU, Indian Railways has a forum to communicate and exchange the most recent advancements and industry information.  The MoU facilitates training and seminars/workshops focusing on specific technology areas like Renewable Energy, energy efficiency, and other interactions for knowledge sharing; utility modernization; advanced energy solutions and systems; regional energy and market integration; and private sector participation and engagement.

Earlier, IR collaborated with USAID/India with a focus on the installation of rooftop solar power throughout railway platforms.


Editor’s Note: This initiative signifies a progressive step towards a more sustainable and eco-friendly future for the railway sector. The focus on utility modernization, advanced energy solutions, regional energy integration, and private sector engagement showcases a holistic approach to sustainability.