India’s first electric flying taxi prototype unveiled by Anand Mahindra
Chairman of the Mahindra Group, Anand Mahindra, recently unveiled images of India’s first electric flying taxi prototype, developed by the ePlane Company at IIT Madras. The prototype, known as the ePlane e200, is slated for operation by the next year and represents a significant milestone in India’s pursuit of innovative transportation solutions. The ePlane e200 is a two-seater aircraft with a range of 200 kilometers, designed for intra-city travel and cargo transport. With a cruise speed of 160 kmph and a top speed of 200 kmph, it promises to significantly reduce travel time and alleviate urban traffic congestion.
Mahindra commended IIT Madras for its role as a dynamic hub of innovation, emphasizing the institution’s contribution to transforming India into a global center for pioneering technology. Founded in 2017 by aerospace engineering professor Satya Chakravarthy and his student Pranjal Mehta, the ePlane Company aims to revolutionize urban transportation. Chakravarthy highlighted that the ePlane e200 can travel up to 10 times faster than road-based vehicles, with a payload capacity of 200 kg. The unveiling of this prototype underscores India’s growing leadership in sustainable transportation, driven by visionary leaders and cutting-edge research institutions.
Editor’s Note: Anand Mahindra, Chairman of the Mahindra Group, has unveiled India’s first electric flying taxi prototype, the ePlane e200, developed by the ePlane Company at IIT Madras. Scheduled for operation next year, this innovative two-seater aircraft boasts a 200-kilometer range and aims to revolutionize intra-city travel and cargo transport, promising to alleviate urban traffic congestion with its impressive speeds. Mahindra’s commendation of IIT Madras underscores the institution’s pivotal role in India’s journey towards pioneering technological advancements in sustainable transportation.
N Chandrasekaran to chair Tata Electronics
N Chandrasekaran, chairman of Tata Sons, is set to take on the role of chairman of Tata Electronics, signaling Tata Group’s strategic move into the semiconductor industry as well as electric vehicles (EVs) and iPhone manufacturing. This leadership change, reported by The Economic Times, involves Chandrasekaran replacing Banmali Agrawala, who will transition to an advisory role within the group. Randhir Thakur, formerly of Intel Foundry Services, has been CEO and managing director at Tata Electronics since June 2023, with Srinivas Satya serving as chief supply chain officer and president of the components business since January. Tata Electronics has bolstered its management by hiring 50-60 top-level expatriates to address previous challenges in talent and technology, aiming to fuel its growth trajectory.
Tata Electronics, which announced its entry into the semiconductor sector in August 2021, has received Indian government approval for fab and ATMP projects in Gujarat and Assam. The company is also the only India-based supplier listed on Apple’s top supplier list for fiscal 2023. With Tata Group planning to invest $120 billion in sectors including semiconductors, defense, iPhone manufacturing, EVs, aviation, and financial services over the next few years, a senior officials’ meeting is scheduled for May 20 to discuss future strategies. Neil Shah, vice president at Counterpoint, emphasized that Tata’s entry into the semiconductor industry, a greenfield area for the company, will require a strategic, measured, and bold approach.
Editor’s Note: N Chandrasekaran’s appointment as chairman of Tata Electronics marks Tata Group’s strategic pivot towards the semiconductor industry, electric vehicles (EVs), and iPhone manufacturing, signaling a significant expansion in its portfolio. With plans to invest $120 billion across various sectors, including semiconductors, defense, and aviation, Tata Group’s move underscores its ambition to become a major player in emerging technologies and global markets.
Next round of talks for India-ASEAN trade pact review in July
Senior officials from India and the 10-nation ASEAN bloc will meet in July in Jakarta, Indonesia, for the next round of talks to review the existing Asean-India Trade in Goods Agreement (AITIGA). The last round of negotiations concluded on May 9 in Putrajaya, Malaysia. Initiated in May 2023, the review aims to make AITIGA more trade-facilitative and beneficial for businesses. The joint committee overseeing the review, co-chaired by Rajesh Agrawal from India’s Department of Commerce and Mastura Ahmad Mustafa from Malaysia’s Ministry of Investment, Trade and Industry, has met four times. They finalized the terms of reference and negotiating structure in the first two meetings and began detailed discussions in the third meeting held in February 2024. The fourth meeting in Malaysia saw delegates from India and all ASEAN countries participating, with a goal to conclude talks by 2025. Eight sub-committees have been formed to address various policy areas, with five already having started discussions.
ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, is a major trade partner for India, accounting for 11% of its global trade. Bilateral trade reached USD 122.67 billion in 2023-24. The review of AITIGA, long demanded by Indian businesses, aims to eliminate trade barriers and misuse of the agreement. The issues being negotiated include national treatment, market access, rules of origin, standards, technical regulations, conformity assessment procedures, and legal and institutional matters. India’s exports to ASEAN countries increased by 9.96% from USD 37.47 billion in FY2019 to USD 41.21 billion in FY2024, while imports from the bloc rose by 34.30% from USD 59.32 billion to USD 79.67 billion. The fifth joint committee meeting is scheduled for July 29-31, 2024, in Jakarta, Indonesia.
Editor’s Note: Senior officials from India and the ASEAN bloc will convene in Jakarta in July for the next round of talks aimed at reviewing the Asean-India Trade in Goods Agreement (AITIGA), with the goal of enhancing trade facilitation and mutual benefits. Led by co-chairs Rajesh Agrawal and Mastura Ahmad Mustafa, the joint committee overseeing the review has made significant progress since its initiation in May 2023, with eight sub-committees addressing key policy areas. The upcoming meeting underscores the importance of resolving trade barriers and optimizing the AITIGA framework to further strengthen the robust bilateral trade relationship between India and ASEAN.
Xiaomi partners with Foxconn to assemble smartphone components in India
China’s Xiaomi Inc has partnered with Foxconn to begin assembling smartphones in India, aiming to reduce costs and capture a larger share of the world’s third-largest smartphone market. The new factory, located in Andhra Pradesh, supports Prime Minister Narendra Modi’s initiative to transform India into a manufacturing hub, fostering economic growth and job creation. The facility will initially produce the Redmi2 Prime, a locally tailored version of Xiaomi’s popular Redmi2 budget smartphone, priced at 6,999 rupees ($109.58). Xiaomi entered the Indian market in July 2014, and it has quickly become the company’s second-largest market due to the popularity of its affordable phones among young, price-sensitive consumers. Manu Jain, Xiaomi’s India head, stated that the new facility would offer tax benefits, better inventory management, and reduced lead times.
The Indian smartphone market, the fastest growing in the world, faces challenges due to inadequate suppliers and infrastructure, leading many local phone companies to rely on imports from China and Taiwan. Despite these hurdles, Xiaomi is optimistic about manufacturing most of its phones in India eventually. Foxconn’s return to India, after shutting down operations when Nokia ceased production, signifies renewed investment interest. The assembly line’s inauguration is a notable achievement for Andhra Pradesh and its leader N. Chandrababu Naidu, renowned for developing Hyderabad into a tech hub. Foxconn is capitalizing on the competitive environment among Indian states for investment, having recently signed a $5 billion deal with Maharashtra. Xiaomi, facing slowing sales in China, is focusing on emerging markets like India and Brazil to drive future growth. According to a Cisco study, the number of smartphone users in India is projected to increase from 140 million in 2014 to 651 million by 2019.
Editor’s Note: Xiaomi’s partnership with Foxconn to assemble smartphones in India reflects its strategic move to tap into the country’s burgeoning market while aligning with Prime Minister Narendra Modi’s manufacturing initiative. The new factory in Andhra Pradesh signifies a commitment to local production, offering benefits such as tax incentives and improved supply chain efficiency. With India poised to become the world’s second-largest smartphone market, Xiaomi aims to leverage this opportunity for sustained growth amid increasing competition.
17 firms under IT hardware PLI to begin production this year: IT secy
A majority of personal computer and server manufacturers selected under India’s IT hardware production-linked incentive (PLI) scheme are expected to commence production this year, according to a senior government official. Out of the 27 approved companies, 17 are slated to start production in 2024, while 6-7 began production last year, and two plan to start next year. This announcement was made by Ministry of Electronics and IT (MeitY) Secretary S. Krishnan during the inauguration of a new high-end computing server manufacturing unit by Netweb Technologies. Notable companies approved under the PLI scheme include Dell, HP, Foxconn, Lenovo, Flextronics, VVDN, Optiemus, and several others such as Padget Electronics and ITI Ltd.
In addition to the PLI scheme, Krishnan highlighted the Rs 10,372-crore India AI Mission, which aims to boost AI development in the country with a preference for domestic companies. Approved by the Cabinet on March 7, 2024, the India AI Mission will span five years and focus on creating a scalable AI ecosystem through public-private partnerships. The initiative will be managed by the IndiaAI Independent Business Division (IBD) under the Digital India Corporation (DIC), fostering high-end AI capabilities and infrastructure in India.
Editor’s Note: According to Ministry of Electronics and IT (MeitY) Secretary S. Krishnan, 17 out of the 27 approved companies under India’s IT hardware production-linked incentive (PLI) scheme are set to commence production in 2024. Krishnan also highlighted the Rs 10,372-crore India AI Mission, recently approved by the Cabinet, aimed at fostering AI development in the country over a five-year period through public-private partnerships.
Visiting Taiwanese business delegation states India has enormous investment possibilities
The World Trade Center Mumbai and the All India Association of Industries (AIAI) recently hosted an interactive meeting with a high-level business delegation from Taiwan to explore emerging opportunities for bilateral economic cooperation. Led by Peter Huang, Specialist of the South Asia section, Market Development Department, Taiwan External Trade Development Council, the delegation emphasized Taiwan’s commitment to enhancing trade and investment relations with India. Huang highlighted that India is a friendly and hospitable market for Taiwanese firms, particularly in sectors such as electronics, auto-components, machineries, food processing, and medical devices. The economic partnership between India and Taiwan has been growing significantly, with Taiwan viewing India as a critical partner under its ‘New Southbound Policy’. The two nations have also signed a migration agreement to facilitate the employment of Indian workers in Taiwanese industries.
Vijay Kalantri, Chairman of WTC Mumbai, noted that the India-Taiwan economic relationship is at an inflection point, evidenced by India awarding the Padma Bhushan to Foxconn CEO Young Liu and the Taipei Economic and Cultural Center’s plan to establish a third office in India. Kalantri called for an increase in bilateral trade to USD 25 billion from the current USD 8 billion, which is skewed in favor of Taiwan with its USD 6 billion in exports compared to India’s USD 2 billion. He urged Taiwanese companies to invest in India and increase imports from India to balance the trade deficit. Additionally, Kalantri suggested improving people-to-people contact by enhancing flight connectivity between the two countries, as there are currently only two direct flights per week. The Taiwanese delegation included representatives from various sectors, such as auto-components, medical devices, electronics, industrial machinery, processed food, printed circuit boards, steel, and laundry equipment.
Editor’s Note: A high-level business delegation from Taiwan, led by Peter Huang of the Taiwan External Trade Development Council, highlighted India’s vast investment potential during an interactive meeting hosted by the World Trade Center Mumbai and the All India Association of Industries. Emphasizing sectors like electronics, auto-components, and medical devices, Huang underscored India’s attractiveness to Taiwanese firms. Vijay Kalantri, Chairman of WTC Mumbai, called for bolstering bilateral trade to address the existing trade deficit, suggesting increased investment from Taiwan and enhanced flight connectivity between the two nations to facilitate economic cooperation.