MeitY to Introduce Voluntary Ethics Code for AI Firms by 2025
The Ministry of Electronics and Information Technology (MeitY) is developing voluntary ethical guidelines for artificial intelligence (AI) and generative AI organizations in India, focusing on large language models (LLMs) and AI training practices. These standards aim to establish a framework for responsible AI development, addressing concerns like data usage, bias, and misuse. While these are not legally binding, they are intended to encourage industry-wide adherence to ethical principles. Officials confirmed that the guidelines are expected to be released by early 2025, following consultations with stakeholders to ensure broad industry support.
This initiative aligns with global trends, such as the G7’s 11-point AI code, though MeitY’s approach will be tailored to India’s unique requirements. Earlier this year, the ministry advised AI firms to prevent bias, discrimination, and electoral interference in their systems. It also required government approval for deploying experimental AI models, though this mandate was later retracted. The upcoming guidelines will provide a roadmap for organizations to responsibly train, deploy, and manage AI technologies while addressing potential risks proactively.
Editor’s Note: The Ministry of Electronics and Information Technology (MeitY) in India is developing voluntary ethical guidelines for AI organizations, focusing on large language models and training practices. These guidelines, expected by early 2025, aim to address issues like data usage, bias, and misuse, encouraging responsible AI development across the industry. While not legally binding, they align with global trends and will provide a framework for the ethical deployment and management of AI technologies.
India’s GCC Sector to Hit $100 Billion Market Value by 2030, Driving Global Innovation
India’s Global Capability Centers (GCC) sector is projected to reach a market value of USD 100 billion by 2030, according to a report by Inductus. Currently hosting over 1,700 GCCs, India’s sector generates approximately USD 64.6 billion annually while employing 1.9 million professionals. By 2030, the workforce is expected to exceed 2.5 million, with 70% of mid-sized corporations viewing their Indian operations as pivotal to innovation strategies. Additionally, 90% of GCCs in India have evolved into multi-functional hubs, integrating technology, operations, and product engineering.
The report highlights a rapid shift toward high-value capabilities, with Engineering, Research, and Development (ER&D)-focused GCCs growing 1.3 times faster than the sector average. By 2026, over 70% of Indian GCCs are expected to adopt advanced AI capabilities, while 80% plan to invest in AI-driven cybersecurity. Operational efficiencies, with costs 30-40% lower than in other regions, continue to solidify India’s position as a global leader in GCC-driven innovation and digital transformation.
Editor’s Note: India’s Global Capability Centers (GCC) sector is projected to reach a market value of $100 billion by 2030, driven by a growing workforce and increasing focus on high-value capabilities like AI and cybersecurity. With over 1,700 GCCs currently operating, India continues to lead in global innovation, offering significant operational efficiencies and attracting investment in cutting-edge technologies.
Tata Acquires Majority Stake in Pegatron’s iPhone Plant in Tamil Nadu
India’s Tata Electronics has finalized a deal to acquire a 60% majority stake in Taiwanese firm Pegatron’s sole iPhone manufacturing plant in India, located in Tamil Nadu. The joint venture, internally announced last week, will see Tata managing daily operations while Pegatron retains a 40% stake to provide technical support. This strategic move bolsters Tata’s position as a key supplier for Apple, aligning with Apple’s efforts to diversify its supply chain away from China amid geopolitical tensions.
The Tamil Nadu facility, employing around 10,000 workers and producing 5 million iPhones annually, will become Tata’s third iPhone manufacturing unit in India. Tata already operates an assembly plant in Karnataka, acquired from Wistron, and is constructing another in Hosur, Tamil Nadu. Analysts predict India’s contribution to global iPhone shipments will rise to 20-25% this year from 12-14% in 2023, underscoring the nation’s growing role in Apple’s supply chain. The companies plan to seek Competition Commission of India (CCI) approval soon to formalize the venture.
Editor’s Note: Tata Electronics has acquired a 60% majority stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu, strengthening its role as a key Apple supplier. Under the joint venture, Tata will manage daily operations, while Pegatron retains a 40% stake for technical support. This acquisition marks Tata’s third iPhone production facility in India, contributing to the nation’s rising share in global iPhone shipments, which is expected to increase to 20-25% in 2024.
Smartphone PLI Scheme Yields 19x Revenue Growth for Indian Government
India’s smartphone production-linked incentive (PLI) scheme has generated significant economic gains, delivering 19 times the value of its incentives to the government over four years. From 2021 to 2024, the scheme added USD 13.03 billion (Rs. 1,10,000 crore) to government revenues, with the production of goods worth USD 148.71 billion (Rs. 12,55,000 crore). During this period, the government disbursed USD 687.3 million (Rs. 5,800 crore) in incentives, while industry contributions included USD 5.69 billion (Rs. 62,000 crore) in GST revenues following a tax hike on mobile phones in 2020 and USD 5.76 billion (Rs. 48,000 crore) in duties on components.
The scheme, led by major players like Apple’s contract manufacturers and Samsung, has propelled India to become the world’s third-largest smartphone exporter, with cumulative exports worth USD 34.01 billion (Rs. 2,87,000 crore). It has also created 900,000 jobs, with women comprising a significant portion of the workforce. Indian companies, like Dixon Technologies, have contributed modestly to the scheme’s success. With value addition in smartphone manufacturing rising from 12% to 20%, the initiative underscores its role in boosting production, exports, and foreign investment while cementing India’s position in the global electronics supply chain.
Editor’s Note: India’s smartphone production-linked incentive (PLI) scheme has generated 19 times the value of its incentives, contributing USD 13.03 billion to government revenues between 2021 and 2024. This initiative has boosted India’s smartphone exports, created 900,000 jobs, and positioned the country as the world’s third-largest smartphone exporter while increasing domestic manufacturing value addition.
India’s Lithium-Ion Battery Demand to Surge, Import Dependency Expected to Drop
India’s demand for lithium-ion batteries is projected to rise significantly, reaching 54 gigawatt hours (GWh) by FY27 and 127 GWh by FY30, driven by increased adoption of electric vehicles (EVs) and renewable energy storage. Currently, the country’s 15 GWh demand is almost entirely met through imports, but this reliance is expected to drop to 20% by FY27, as large-scale integrated battery manufacturing capacities are developed domestically under initiatives like the Production Linked Incentive (PLI) scheme. The government has already allocated 40 GWh of battery capacity under the scheme, with an additional 10 GWh to be awarded soon.
The growth in battery demand is fueled by ambitious government policies such as the FAME scheme, Viability Gap Funding for Battery Energy Storage Systems (BESS), and the target of 30% EV penetration by 2030. Hardik Shah, director at CareEdge Ratings, highlighted the increasing cost competitiveness of Indian manufacturers, which could challenge global players, particularly Chinese suppliers. With supportive policies and domestic manufacturing ramping up, India is poised to reduce its import dependency while meeting its renewable energy and EV goals.
Editor’s Note: India’s demand for lithium-ion batteries is set to surge, reaching 54 GWh by FY27 and 127 GWh by FY30, driven by the growth of electric vehicles (EVs) and renewable energy storage. Currently heavily reliant on imports, the country aims to reduce this dependency to just 20% by FY27 through domestic manufacturing initiatives like the PLI scheme, which has already allocated 40 GWh of capacity. With supportive policies and increasing cost competitiveness, India is positioning itself to challenge global suppliers and meet its ambitious EV and renewable energy targets.
MediaTek Plans Major Hiring Expansion in India, Eyes Growth in 5G Market
Taiwanese chipmaker MediaTek is set to ramp up its hiring in India, leveraging the country’s thriving technology ecosystem to strengthen its position as the top chip supplier for smartphone manufacturers. According to Counterpoint data, MediaTek has surpassed Qualcomm in providing chips for both budget and premium smartphones, driven by India’s rapid transition from 4G to 5G. The company sees significant opportunities in the growing local production and consumption of electronics, with plans to expand its workforce beyond the current 1,000 engineers in Bengaluru, Noida, and Mumbai, who already play a pivotal role in global R&D efforts.
Highlighting the strategic importance of India, MediaTek’s India MD, Anku Jain, praised the country’s unique combination of engineering talent and English-speaking skills. Global VP for corporate marketing, Finbarr Moynihan, noted the increasing consumer demand for premium smartphones, fueling the need for advanced chips. MediaTek’s planned hiring spree aims to capitalize on this trend, further solidifying its role in shaping the future of global technology from India.
Editor’s Note: MediaTek plans to expand its hiring in India, aiming to strengthen its position as a leading chip supplier for smartphones, particularly in the growing 5G market. With its current workforce of 1,000 engineers across Bengaluru, Noida, and Mumbai, the company sees India’s tech ecosystem as key to its global R&D efforts. The hiring expansion reflects MediaTek’s strategy to capitalize on India’s increasing demand for advanced chips driven by the transition to 5G and rising consumer interest in premium smartphones.
RRP Electronics Partners with AMB Taiwan for $25 Million Memory Module Production
RRP Electronics Limited, a leading semiconductor company, has signed a Memorandum of Understanding (MoU) with Taiwan-based AMB to collaborate on advanced technology for memory modules, including SPI NAND, MicroSD, eMMC, and SSDs. The partnership will involve technology transfer covering package structure details, substrate designs, and test program development, with an initial production target valued at $25 million. Rajendra Chodankar, Chairman of RRP Electronics, stated that the collaboration will be implemented at the company’s state-of-the-art OSAT facility in Mahape, which has been operational since September 2024, with outputs expected to supply major global clients like Samsung.
The Mahape facility spans 40,000 sq. ft. and will be bolstered by additional production lines at a new plant in MIDC, Taloja, set to become operational within two years. This venture is expected to generate $25 million in annual revenue, marking a significant milestone for RRP Electronics in the semiconductor industry. The collaboration underscores the company’s commitment to scaling up production capacities and establishing itself as a key player in the global memory module market.
Editor’s Note: RRP Electronics has partnered with Taiwan’s AMB to produce advanced memory modules, including SPI NAND, MicroSD, eMMC, and SSDs, with an initial production target valued at $25 million. The collaboration will take place at RRP’s new OSAT facility in Mahape, with plans for additional production lines at a new plant in Taloja. This venture aims to generate significant revenue and solidify RRP Electronics’ position as a key player in the global memory module market.