Nvidia Proposes Joint Chip Development with India to Harness Semiconductor Talent
Nvidia’s CEO, Jensen Huang, has proposed a collaboration with India to co-develop a semiconductor chip, leveraging the country’s robust design talent. The idea emerged during a meeting between Prime Minister Narendra Modi and Huang in the U.S. earlier this year. Huang, currently in India for the Nvidia AI summit, has also discussed the potential of creating an India-specific chip. According to Union Minister Ashwini Vaishnaw, discussions are in the early stages, with key details on costs, benefits, and applications still under consideration. The chip could support critical national projects, such as the Indian Railways’ Kavach security system, among other AI mission applications.
Officials noted that only India and Germany have the semiconductor infrastructure required to collaborate with Nvidia on such an ambitious project. To expedite the initiative, Nvidia may partner with chip designers like Arm or AMD for the core components, while India’s Centre for Development of Advanced Computing (C-DAC) or a private chip design firm could contribute to the upper layers. This development comes as Nvidia’s market capitalization reaches $3.39 trillion, making it the world’s second-most valuable company after Apple.
Editor’s Note: Nvidia CEO Jensen Huang has proposed a collaboration with India to co-develop a semiconductor chip, leveraging the country’s strong design talent. The potential India-specific chip, discussed during a meeting with Prime Minister Narendra Modi, could support critical national projects like the Indian Railways’ Kavach security system and AI applications. While discussions are still in early stages, Nvidia may partner with chip designers like Arm or AMD, with India’s C-DAC or private firms contributing to the project’s development.
Groww Pays $160 Million Tax for Domicile Shift to India; Reports Increased Losses
Bengaluru-based stock broking platform Groww has paid Rs 1,340 crore ($160 million) in taxes as it relocated its parent entity from the United States to India in May 2024. This significant tax expense contributed to a net loss of Rs 805 crore for the fiscal year ending March 31, 2024, even as operational profits rose to Rs 535 crore, up from Rs 458 crore in FY23. The move follows a trend set by companies like PhonePe, which shifted from Singapore to India in 2022, incurring a billion-dollar tax payment in the process.
Unlike PhonePe, which utilized a share swap deal to transition between its Indian and Singapore units, Groww merged its US parent company with its Indian entity, leading to the tax payout. Supported by Peak XV Partners, Groww was last valued at $3 billion in 2021 and has not undertaken a significant institutional equity round since then. The company’s shift underscores an emerging trend of Indian fintech firms bringing their parent entities onshore, potentially indicating a strategic alignment with India’s growing regulatory and business landscape.
Editor’s Note: Bengaluru-based stock broking platform Groww paid $160 million in taxes as it shifted its parent entity from the U.S. to India in May 2024, contributing to a net loss of Rs 805 crore for the fiscal year. This move follows a trend seen with other Indian fintech firms like PhonePe, and reflects a strategic alignment with India’s evolving regulatory and business environment.
India’s Automobile Exports Surge 14% in April-September, Driven by Passenger Vehicles and Two-Wheelers
Automobile exports from India grew by 14% year-on-year in the April-September period of the current fiscal, reaching 25,28,248 units, up from 22,11,457 units in the previous year, according to data from the Society of Indian Automobile Manufacturers (Siam). Key markets, particularly in Latin America and Africa, saw a rebound in demand after previously slowing down due to currency devaluation and import prioritization of essential goods. This recovery played a significant role in the rise of India’s vehicle exports, which had previously fallen by 5.5% in FY24 due to economic challenges in overseas markets.
In the April-September period, passenger vehicle exports increased by 12% to 3,76,679 units, with Maruti Suzuki leading the segment by exporting 1,47,063 units—a 12% growth. Two-wheeler exports also rose significantly by 16% to 19,59,145 units, driven by a 19% increase in scooter shipments and a 16% increase in motorcycle exports. However, three-wheeler exports saw a minor dip of 1% to 1,53,199 units, reflecting mixed trends across different vehicle categories in the first half of the fiscal year.
Editor’s Note: India’s automobile exports surged 14% year-on-year in the April-September period, reaching over 25 lakh units, driven by strong demand for passenger vehicles and two-wheelers, particularly in Latin America and Africa. Passenger vehicle exports grew by 12%, with Maruti Suzuki leading the segment, while two-wheeler exports rose by 16%, boosted by higher scooter and motorcycle shipments. However, three-wheeler exports saw a slight dip of 1%, reflecting mixed trends across vehicle categories during the period.
China Protests New Taiwan Office in Mumbai, Urges India to Honor One-China Principle
China has lodged a diplomatic protest with India over the recent opening of the Taipei Economic and Cultural Centre (TECC) office in Mumbai, marking Taiwan’s third office in India after Delhi and Chennai. China’s Foreign Ministry spokesperson, Mao Ning, expressed firm opposition to any official interactions between Taiwan and countries that maintain diplomatic relations with China, asserting that Taiwan is an “inalienable part” of Chinese territory. Mao emphasized that China has made “solemn representations” to India regarding the establishment of the TECC office in Mumbai.
Reiterating the one-China principle as the political foundation of China-India relations, Mao called on India to uphold its commitment, avoid official interaction with Taiwan, and refrain from actions that could impact China-India ties. China urged India to handle Taiwan-related issues “prudently and properly” to maintain the stability of bilateral relations. The TECC Mumbai office opened on Wednesday, marking a notable expansion of Taiwan’s diplomatic presence in India.
Editor’s Note: China has protested the opening of Taiwan’s Taipei Economic and Cultural Centre (TECC) in Mumbai, urging India to honor the One-China principle and avoid official interactions with Taiwan. The protest follows the expansion of Taiwan’s diplomatic presence in India, with China calling on India to handle Taiwan-related issues cautiously to maintain stable bilateral relations.
Digital Payments Surge During Festive Season, Led by Credit Cards and Pay-Later Options
The festive season this year saw a marked increase in digital payments, particularly through credit-based options, as transaction volumes jumped by 35-50% compared to last year’s festive period, industry sources reported. Razorpay recorded a significant 106% rise in credit card transactions and a 60% increase in UPI transactions between October 3 and 12 compared to last year’s Navratri season. Amazon Pay also noted that 20% of purchases were made using EMI, with 80% of those being no-cost EMIs, where customers paid no additional charges on installment-based purchases for items like video games and electronics.
Increased adoption of credit cards emerged as a major trend, with Worldline India reporting a 53% rise in credit card transactions, particularly in lifestyle, fashion, and electronics sectors. Innoviti Technologies observed a notable 62% growth in credit card spending in the electronics category during Navratri week, reflecting an overall consumer shift toward credit-based digital payment methods. As of August, the central bank data showed that 105 million credit cards are currently issued in India, underscoring the growing popularity of credit-driven purchases during high-demand periods like the festive season.
Editor’s Note: Digital payments surged during this year’s festive season, with credit card transactions seeing a significant rise of 35-50% compared to last year. Razorpay reported a 106% increase in credit card transactions, while Amazon Pay noted that 20% of purchases were made using EMI, with 80% of those being no-cost EMIs. The trend toward credit-based payments was particularly strong in sectors like electronics, fashion, and lifestyle, reflecting a shift in consumer spending patterns during high-demand periods.
MeitY Extends Deadline for Rs 10,000 Crore GPU Tender Amid Industry Concerns on Energy Efficiency
The Ministry of Electronics and Information Technology (MeitY) has extended the deadline for submitting bids on its Rs 10,000 crore GPU tender to November 12. This extension, the second since the tender’s initial September 6 deadline, is aimed at supporting the setup of a public AI cloud infrastructure with at least 10,000 GPUs under the India AI Mission. Industry insiders say the tender’s stringent power usage effectiveness (PUE) requirement, set at below 1.35, poses significant technical and financial challenges due to India’s high ambient temperatures and the necessity for costly cooling technologies.
Sunil Gupta, CEO of Yotta Data Services—one of the bidders—highlighted that meeting the high-density needs of AI workloads will require substantial investment in data centres capable of handling higher power loads, while also adopting energy-efficient cooling technologies. Gupta noted that AI-focused data centres could push global energy consumption into the double-digit percentages if not carefully managed, though India’s total energy usage by data centres remains relatively low at 0.2%–0.3%. The government is currently reviewing these concerns, though no modifications to the tender’s clauses have yet been announced.
Editor’s Note: The Ministry of Electronics and Information Technology (MeitY) has extended the deadline for its Rs 10,000 crore GPU tender to November 12, aimed at setting up a public AI cloud infrastructure with 10,000 GPUs under the India AI Mission. Industry concerns have emerged over the tender’s stringent power usage effectiveness (PUE) requirement, which may pose technical and financial challenges due to India’s high temperatures and the need for costly cooling solutions. While the government is reviewing these issues, no changes to the tender’s conditions have been announced yet.