Weekly News Updates- July 3 – July 9

Gaming industry expected to reach Rs 25,300 crore by the end of 2024–2025; TAITRA Urges Foreign Firms to Adapt to India's Business Environment Amid Foxconn Hiring Controversy; India Needs Infrastructure Overhaul to Become Semiconductor Hub; Taiwan Expo in India 2024 Kicks Off in New Delhi; Centre to Unveil Electric Vehicle Policy Guidelines by September-End; 7 Tech Firms to invest in Electronics Cluster In Mysuru; Union budget to be announced on July 23; Centre may use Indian intel on the A(I) Mission

Gaming industry expected to reach Rs 25,300 crore by the end of 2024–2025: report

The Indian gaming industry is set to experience significant growth, expanding by 20% year-on-year to reach Rs 25,300 crore by the end of the 2024-25 financial year, according to a report titled “Guardians of Safe Play: Ethical Gaming for Vibrant Bharat” by Grant Thornton Bharat in collaboration with the E-Gaming Federation (EGF). The report emphasizes the necessity for a detailed code of conduct to establish ethical standards, ensuring accountability and transparency within the industry. This code aims to address critical risks such as cyber threats, regulatory uncertainties, and financial risks, thus supporting the industry’s sustainability and growth.

The industry has garnered substantial investment, raising $2.8 billion from domestic and international investors over the past five years. Notable investments include South Korean game developer Krafton’s $140 million in Indian gaming and content ventures, with plans for an additional $150 million investment in the next two to three years. The report also advocates for third-party certification to encourage self-regulation and uphold industry standards. It stresses the importance of strong player protection mechanisms and calls for collaboration among industry players, regulators, and policymakers to create a safer gaming environment, positioning India as a global leader in ethical gaming practices.

https://economictimes.indiatimes.com/tech/technology/gaming-industry-to-grow-to-rs-25300-crore-by-end-of-2024-25-report/articleshow/111601396.cms?from=mdr

Editor’s Note: The Indian gaming industry is poised for substantial growth, projected to reach Rs 25,300 crore by the end of the 2024-25 fiscal year, driven by a robust 20% year-on-year expansion. This growth is supported by significant investments totaling $2.8 billion over the past five years, highlighting increasing confidence from both domestic and international investors. The industry’s focus on ethical standards, outlined in the Grant Thornton Bharat report, underscores efforts towards sustainability through rigorous self-regulation and collaboration among stakeholders, aiming to mitigate risks and enhance player protection.

TAITRA Urges Foreign Firms to Adapt to India’s Business Environment Amid Foxconn Hiring Controversy

Amid the controversy surrounding Foxconn’s hiring practices, the Taiwanese trade promotion organization TAITRA stated on Monday that all foreign companies, including Taiwanese firms, must adapt to India’s business environment. This comment comes in response to media reports alleging that Foxconn, a contract manufacturer of Apple iPhones, discriminates against married women by not hiring them at its Tamil Nadu unit.

Foxconn has denied these allegations, informing the government last month that 25% of its new hires are married women. The company clarified that its safety protocol, which requires all employees to avoid wearing metal regardless of gender or religion, is not discriminatory. TAITRA acknowledged potential cultural issues but emphasized the importance of foreign firms adapting to local business practices in India.

https://www.ptinews.com/story/business/all-foreign-taiwanese-firms-need-to-adapt-to-india-s-biz-envt-taitra-on-foxconn-hiring-row/1640941

Editor’s Note: TAITRA has called on foreign companies, including Taiwanese firms like Foxconn, to adjust to India’s business norms amidst the controversy over hiring practices. The organization’s statement follows allegations against Foxconn regarding discrimination against married women at its Tamil Nadu facility, which the company has refuted while emphasizing adherence to safety protocols applicable to all employees.

India Needs Infrastructure Overhaul to Become Semiconductor Hub: New Taipei City Deputy Mayor

India must improve its land, water, and electricity supply ecosystem and provide excellent rail, road, and water connectivity to develop a robust electronics and semiconductor manufacturing sector, according to Chu Tih Ju, Deputy Mayor of New Taipei City, Taiwan. Speaking at the Taiwan Expo 2024, Ju highlighted the challenges India faces, such as litigation-free land availability and uninterrupted power and water supply, as critical infrastructure requirements for the industry.

Ju emphasized that countries aiming to build domestic semiconductor and electronics manufacturing ecosystems should not work in isolation but should foster allied industries to support growth. With Taiwan being a significant player in electronics and semiconductor manufacturing, bilateral trade with India reached $8.2 billion last year and saw a 28% increase in the first quarter of 2024. James C F Huang, Chairman of Taiwan’s trade body TAITRA, stressed that all companies, regardless of size, must comply with local laws in their operational countries.

https://m.economictimes.com/tech/tech-bytes/india-needs-to-work-on-infra-ecosystem-to-be-a-semicon-hub-dy-mayor-of-new-taipei-city/amp_articleshow/111586877.cms

Editor’s Note: At the Taiwan Expo 2024, New Taipei City Deputy Mayor Chu Tih Ju underscored India’s need for substantial infrastructure improvements, including reliable land availability and robust utilities, to establish itself as a hub for semiconductor and electronics manufacturing. Highlighting Taiwan’s strong bilateral trade with India and emphasizing compliance with local laws, Ju emphasized the importance of integrated efforts to foster a thriving manufacturing ecosystem in India.

Taiwan Expo in India 2024 Kicks Off in New Delhi, Showcasing Top Taiwanese Products

The “Taiwan Expo in India 2024” has returned to New Delhi after a five-year hiatus, inaugurating its 7th edition at Bharat Mandapam (Pragati Maidan) with about 120 Taiwanese companies participating. The event, which serves as a key platform for Taiwan-India economic and cultural exchanges, was led by Cynthia Kiang, Director General of the International Trade Administration (TITA), and James Huang, Chairman of the Taiwan External Trade Development Council (TAITRA). Notable attendees included Mizoram Chief Minister Lalduhawma, FICCI Chairman Manish Sharma, and Rajoo Goel, Secretary General of ELCINA, among others.

James Huang highlighted India’s rise as a global manufacturing hub and Taiwan’s intent to collaborate with India on initiatives such as establishing a wafer fab to bolster supply chain resilience. Cynthia Kiang noted India’s significant position in the global manufacturing landscape, particularly in footwear and textiles. The expo features various pavilions, including the “Smart Manufacturing Pavilion” and the “Sustainable & Innovation Textile Pavilion,” showcasing Taiwan’s advanced solutions. The three-day event also includes a “Taiwan-Japan Business Cooperation Seminar and Matchmaking” session, emphasizing cross-industry alliances and promoting Taiwan’s intelligent and efficient manufacturing capabilities to capture business opportunities in India.

https://theprint.in/economy/three-day-taiwan-expo-in-india-kicks-off-in-new-delhi-showcasing-top-taiwanese-products/2165537

Editor’s Note: The “Taiwan Expo in India 2024” commenced in New Delhi at Bharat Mandapam, marking its 7th edition with participation from 120 Taiwanese companies. Led by TAITRA Chairman James Huang and TITA Director General Cynthia Kiang, the expo aims to strengthen Taiwan-India economic ties through showcases of advanced Taiwanese products and discussions on collaborative initiatives like establishing a wafer fab to enhance supply chain resilience. International Cooperation Center of Taipei Computer Association has also put up TCA Innovation Pavilion at the Taiwan Expo featuring 6 companies viz., Goldkey Technology, Keypasco, Netio Technologies, Phison Electronics, Ubestream, and, Volktek and have exclusive B2B sessions with NASSCOM and FAIITA member companies from India.

Centre to Unveil Electric Vehicle Policy Guidelines by September-End

The Centre is set to release the policy guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI) by the end of September, according to government officials. These guidelines include provisions for reduced customs duties on imported electric cars in exchange for investment commitments in India. The scheme, aimed at boosting electric vehicle manufacturing in the country, will allow OEMs to submit applications through a dedicated portal after the guidelines are issued. The notification for the scheme was initially issued on March 15, 2024, providing a 120-day window for applications.

The delay in releasing the guidelines has been attributed to the Lok Sabha elections and Budget preparations. However, industry insiders suggest that the lack of response from automakers, particularly Tesla, has also contributed to the postponement. The scheme proposes a reduction in import duties from 70% to 15% for electric-vehicle makers who invest at least $500 million and establish a manufacturing plant within three years. The initiative aims to attract investments from global players like Tesla and BYD, as well as existing manufacturers such as VinFast, Kia, Škoda, BMW, and Mercedes-Benz. VinFast has expressed concerns about the investment criteria and is advocating for the inclusion of its prior investments in India to qualify for the incentives.

https://www.discountmags.com/magazine/business-standard-july-09-2024-digital-m/in-this-issue/s2nLcgddipjNDiWnsuwsys

Editor’s Note: The Indian government plans to unveil the guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” by the end of September, aimed at boosting the country’s electric vehicle (EV) sector. These guidelines will offer reduced customs duties on imported EVs in exchange for substantial investments in local manufacturing. The delay in issuing the guidelines, initially slated for March, was partly due to electoral processes and industry response dynamics, including feedback from global automakers like Tesla.

7 Tech Firms to invest in Electronics Cluster In Mysuru

The Karnataka government has allocated 235.5 acres in Kochanahalli Industrial Area, Mysuru district, to establish an electronics manufacturing cluster (EMC) with a total project cost of Rs 245.67 crore, excluding land costs. Kaynes Technology India, Gopalan Aerospace, Krypton India Solutions, Virtulive Technologies, Wuerth Elektronik India, Proxelera, and LeePra Technologies are the seven domestic tech companies planning investments in the cluster. Kaynes Technology will invest Rs. 1.5 billion on 20 acres, Gopalan Aerospace Rs. 2 billion on 50 acres, and Krypton India Solutions Rs. 1.75 billion on 10 acres. The other companies are also making significant investments, and the cluster is set to promote semiconductor manufacturing with support from the Ministry of Electronics and Information Technology (MeitY).

Priyank Kharge, the State IT minister, emphasized that while Bengaluru will remain India’s primary semiconductor design hub, Mysuru will complement it with semiconductor-related activities. The state has sought production-linked incentives and fiscal support from MeitY, and the application and detailed project report have been submitted to the Centre. A site inspection was conducted on May 28, and the application is under review for approval by MeitY. Mysuru’s proximity to the Kabini River ensures an adequate water supply for semiconductor manufacturing, and the region benefits from transportation facilities like the Mangaluru port and skill centres such as the Lahari Common Facility Centre. The EMC scheme, launched in April 2020, aims to enhance India’s electronics manufacturing ecosystem, with Karnataka applying for an EMC under the EMC 2.0 scheme in Mysuru district on March 31 last year.

Editor’s Note: Seven domestic tech firms, including Kaynes Technology India and Gopalan Aerospace, are set to invest in an electronics manufacturing cluster in Mysuru, Karnataka. With a total project cost of Rs 245.67 crore, excluding land costs, the cluster aims to bolster semiconductor manufacturing supported by the Ministry of Electronics and Information Technology, enhancing India’s electronics manufacturing capabilities.

Union budget to be announced on July 23

Finance Minister Nirmala Sitharaman will present the first Union Budget of Prime Minister Narendra Modi’s third term on July 23, 2024, as approved by President Droupadi Murmu. The Budget session is scheduled from July 22 until August 12. Under Article 112 of the Constitution, a statement of estimated receipts and expenditure of the government must be presented before Parliament every financial year. The Budget is usually presented at the end of a fiscal year on the first day of February, while an Interim Budget is presented in the last year before general elections.

In February, the government presented the Interim Budget 2024-25 in Parliament, aiming for ‘Viksit Bharat’ by 2047 with comprehensive development goals. The Interim Budget lowered the FY25 fiscal deficit target to 5.1% of GDP and announced no changes in the tax slabs for both the old and new regimes. This upcoming session will be the first full session of Parliament after the oath-taking ceremony of newly elected members of the 18th Lok Sabha, which was held from June 24 to July 2 following the general election results.

https://www.livemint.com/budget/news/budget-2024-date-time-where-to-watch-all-you-need-to-know-11720412395035.html

Editor’s Note: Finance Minister Nirmala Sitharaman is scheduled to present Prime Minister Narendra Modi’s third-term Union Budget on July 23, 2024, marking the beginning of the Budget session from July 22 to August 12. The Budget, a constitutional requirement under Article 112, will outline the government’s projected expenditures and revenues for the fiscal year, following the interim budget presented earlier in February.

Centre may use Indian intel on the A(I) Mission

The government is considering preferring Indian data centre companies to manage the operations of graphics processing units (GPUs) procured under the Rs 10,372 crore India AI Mission. Abhishek Singh, Additional Secretary at the Ministry of Electronics and IT, disclosed at the Global India AI Summit that Rs 4,000 to Rs 5,000 crore will be allocated for GPUs. Currently, GPUs are a rare commodity produced by a few American companies like Nvidia, Intel, and AMD. Indian data centres could acquire these GPUs and offer them to local firms, start-ups, academics, and researchers at subsidized rates. The government is in discussions with Nvidia, Intel, and AMD to understand the supply dynamics of these advanced computing resources.

International firms interested in the tender to manage these GPUs might need to establish operations in India and ensure that data processing remains within the country. The much-anticipated request for proposal (RFP) is expected to be released soon, with officials exploring the best methods to subsidize GPU operations, including maintenance and upgrades. The Ministry of Electronics and Information Technology may also provide viability gap funding for GPU procurement. Initially, the plan is to procure a limited number of GPUs, focusing on specific areas before expanding their availability. A public-private partnership (PPP) model is preferred. Indian data centre companies procuring these GPUs may need to provide client details, the nature of their work, and potential outcomes of any research and innovation facilitated by the GPUs.

https://www.cxodigitalpulse.com/on-al-mission-centre-may-go-with-indian-intel

Editor’s Note: The Indian government is planning to allocate Rs 4,000 to Rs 5,000 crore for graphics processing units (GPUs) under the India AI Mission, considering Indian data centre companies for managing these resources. This move aims to make GPUs more accessible to local firms, startups, academics, and researchers at subsidized rates, potentially reducing dependency on foreign suppliers like Nvidia, Intel, and AMD. Discussions are underway with international companies to ensure compliance with data processing regulations and explore opportunities for establishing operations in India.