India Open to Business with China, Says Foreign Minister Jaishankar
India is not “closed to business from China,” but the focus lies on determining the sectors and
terms under which such business is conducted, said Foreign Minister Subrahmanyam Jaishankar
at a conference in Berlin. His comments come amid strained ties between the two nations
following the deadly 2020 clashes at the Himalayan border. Since then, India has tightened
scrutiny on Chinese investments, halting major projects and virtually blocking visas for Chinese
nationals. However, key government figures, including Finance Minister Nirmala Sitharaman,
have supported the idea of permitting more Chinese investments.
The recent annual economic survey hints that to boost global exports, India could integrate into
China’s supply chain or encourage more foreign direct investment (FDI) from the country.
Jaishankar emphasized the complexity of the relationship, noting that India could ease
restrictions in non-sensitive sectors such as solar panels and battery manufacturing, where it
lacks domestic expertise. While diplomatic efforts to resolve the border tensions have been slow,
India is also considering easing visa restrictions for Chinese technicians to facilitate stalled
investments.
https://www.reuters.com/world/india/india-foreign-minister-jaishankar-says-not-closed-business-
china-2024-09-10/
Editor’s Note: Foreign Minister Subrahmanyam Jaishankar stated that India remains
open to business with China but is focused on specific sectors and terms due to the strained
relations following the 2020 border clashes. While India has tightened scrutiny on Chinese
investments and restricted visas, there is potential for easing restrictions in non-sensitive
areas like solar panels and battery manufacturing, which align with India’s development
goals. The recent economic survey suggests India may integrate into China’s supply chain
and attract more Chinese foreign direct investment to boost exports, with possible easing of
visa restrictions for Chinese technicians to address stalled investments.
Delta Electronics to Nearly Double Workforce in India, Shifts Focus to Bengaluru
Taiwan’s Delta Electronics has announced plans to almost double its workforce in India over the
next five years, aiming to expand from 3,500 to 6,500 employees. As part of its strategy, the
company has opened its largest research and development (R&D) centre in Bengaluru,
positioning itself closer to manufacturing hubs in Tamil Nadu. Delta Electronics, known for
supplying power components, will also move its Indian headquarters from Gurgaon to
Bengaluru, the country’s tech capital, to leverage the region’s talent pool and enhance future
development.
Benjamin Lin, President of Delta Electronics India, highlighted Bengaluru as a prime location
for attracting top tech talent. The new R&D centre forms part of Delta’s broader $500 million
investment plan for India, initially announced in 2015-16 but delayed due to the COVID-19
pandemic. The move aligns with a broader trend of international firms viewing India as a global
innovation hub, with over 1,620 global capability centres now established in the country,
according to data from Nasscom.
https://www.reuters.com/business/taiwans-delta-electronics-aims-double-india-workforce-2024-
09-09/
Editor’s Note: Delta Electronics plans to nearly double its workforce in India from 3,500 to
6,500 over the next five years and will shift its headquarters from Gurgaon to Bengaluru,
where it has just opened its largest R&D center. This move is part of a broader $500
million investment plan, initially announced in 2015-16 but delayed by the COVID-19
pandemic. The company aims to capitalize on Bengaluru’s tech talent and proximity to
manufacturing hubs, reflecting a wider trend of international firms recognizing India as a
key global innovation hub.
India’s Auto Sector Poised for Global Leadership in EVs and Bicycle Market: Shri Piyush
Union Minister of Commerce & Industry, Shri Piyush Goyal, expressed confidence in India’s
auto sector reaching a $100 billion export target by 2030, positioning it as a major job creator.
Speaking at the 64th Annual Session of the Automotive Component Manufacturers Association
of India (ACMA) in New Delhi, Shri Goyal urged the sector to aim for global leadership as India
advances toward becoming the world’s third-largest economy. He encouraged industry leaders to
focus on Research and Development (R&D), leverage the Rs 1 lakh crore Anusandhan National
Research Foundation (ANRF) fund, and explore new opportunities in Electric Vehicles (EVs),
the related ecosystem, and the bicycle market.
The Minister highlighted India’s potential to attract foreign investments, especially from EFTA
countries, and emphasized the role of industrial smart cities in development and export
promotion. Shri Goyal also commended the efforts toward a self-reliant India, or ‘Atmanirbhar
Bharat,’ stressing the importance of using Original Equipment Manufacturer (OEM) products for
their quality and longevity. He praised ACMA for its proactive role in Free Trade Agreement
(FTA) negotiations and noted the significance of Bharat Mobility 2025 as a platform to showcase
India’s auto sector to the world. Union Minister of State for Commerce & Industry, Shri Jitin
Prasada, further urged the auto component sector to promote exports and generate more jobs.
https://smestreet.in/limelight/auto-sector-to-capture-ev-and-bicycle-market-opportunities-
7058560
Editor’s Note: Union Minister Piyush Goyal is confident that India’s auto sector can
achieve a $100 billion export target by 2030, positioning itself as a global leader in Electric
Vehicles (EVs) and the bicycle market while creating numerous jobs. At the ACMA’s 64th
Annual Session, he urged industry leaders to focus on R&D, utilize the Rs 1 lakh crore
ANRF fund, and attract foreign investments, especially from EFTA countries, to bolster
India’s position as a major global automotive player.
Ather Energy Files for $536 Million IPO, Plans Electric Two-Wheeler Factory in
Indian e-scooter manufacturer Ather Energy has filed for an initial public offering (IPO) worth
45 billion rupees ($536 million) at a valuation of $2.5 billion, according to a source familiar with
the matter. Backed by Hero MotoCorp, Ather is India’s fourth-largest e-scooter maker by market
share. The company plans to sell new shares worth 31 billion rupees while existing investors,
including co-founder and CEO Tarun Sanjay Mehta, are set to offload shares worth 14 billion
rupees. Hero MotoCorp will retain its stake in the company. The IPO comes as India’s stock
market experiences a surge, with over 200 companies raising more than $7 billion this year.
Proceeds from the IPO will be used to build a new electric two-wheeler factory in Maharashtra
and fund marketing efforts, Ather disclosed in its filings. The company is looking to capitalize
on growing interest in the electric vehicle (EV) market, driven by the government’s push for
clean energy. However, Ather’s financials show widening losses, reporting a net loss of 10.6
billion rupees in fiscal 2024, up from 8.64 billion rupees the previous year. The listing follows
Ola Electric’s successful IPO, which saw its stock more than double in value before stabilizing,
sparking interest in the EV sector.
https://www.reuters.com/world/india/indian-electric-two-wheeler-maker-ather-energy-files-ipo-
2024-09-09/#:~:text=NEW%20DELHI%2FBENGALURU%2C%20Sept%209,Hero%20MotoCorp%20(
HROM.
Editor’s Note: Ather Energy has filed for a $536 million IPO at a $2.5 billion valuation,
aiming to raise funds to build a new electric two-wheeler factory in Maharashtra and boost
marketing efforts. Despite widening losses, the move reflects growing interest in the EV
sector, following the successful IPO of Ola Electric and amid a booming stock market.
India Surpasses US as Second-Biggest 5G Handset Market in H1 2024
Global 5G handset shipments surged by 20% year-over-year in the first half of 2024, with India
overtaking the United States to become the world’s second-largest 5G handset market, according
to Counterpoint’s Market Monitor service. China retained the top spot, while India’s rapid
growth was fueled by strong demand in the budget segment, driven by brands like Xiaomi, vivo,
and Samsung. The Caribbean and Latin America (CALA) region also witnessed remarkable
growth, registering a 63% increase in 5G shipments year-on-year, with countries like Mexico
and Brazil playing a key role.
Apple led global 5G handset shipments with a 25% share, propelled by the success of its iPhone
15 and 14 series. Samsung followed with over 21% market share, driven by its Galaxy A and
S24 series. Xiaomi saw triple-digit growth in India, and Motorola emerged as the fastest-growing
brand globally, with strong performance in regions like CALA, India, and the Middle East and
Africa (MEA). Analysts predict that 5G handsets will continue to dominate, with the 5G share of
global handset shipments expected to reach 65% by 2025.
https://www.counterpointresearch.com/insights/global-5g-handset-market-h1-2024/
Editor’s Note: In the first half of 2024, India surpassed the United States to become the
world’s second-largest 5G handset market, with a 20% year-over-year increase in global
5G shipments. China remains the top market, while India’s growth is driven by high
demand in the budget segment from brands like Xiaomi, vivo, and Samsung. Apple leads
with a 25% share of global 5G shipments, followed by Samsung and a rapidly growing
Motorola, with analysts forecasting that 5G handsets will comprise 65% of global
shipments by 2025.
Adani Group to Invest $10 Billion in Semiconductor Plant with Israel’s Tower
The Adani Group, led by billionaire Gautam Adani, has announced plans to invest $10 billion in
building a semiconductor fabrication plant in partnership with Israel’s Tower Semiconductor
Ltd. The facility, located in Taloja near Mumbai, will bolster India’s chipmaking capabilities and
is expected to produce 40,000 wafers in the first phase, scaling to 80,000 wafers in the second.
The chips will be used in key sectors such as drones, automobiles, and smartphones, as India
seeks to reduce reliance on semiconductor imports amid growing global demand. The project
will be largely funded by Adani Enterprises and is anticipated to be completed within three to
five years.
This move aligns with Prime Minister Narendra Modi’s vision to make India a technology
superpower, attracting international chipmakers while reducing dependence on foreign imports.
The Indian government has already received proposals worth $21 billion to strengthen
semiconductor production, with Adani’s plant joining other initiatives such as Tata Group’s $11
billion chip facility in Gujarat. As the semiconductor sector becomes a crucial battleground in the global tech rivalry, India’s growing capabilities are positioning it as a key player in the
industry.
https://www.bnnbloomberg.ca/business/international/2024/09/06/adani-plans-10-billion-india-
chip-plant-with-israels-tower/
Editor’s Note: The Adani Group has unveiled a $10 billion investment plan to build a
semiconductor fabrication plant in Taloja, India, in partnership with Israel’s Tower
Semiconductor Ltd. The facility will produce chips for drones, automobiles, and
smartphones, with a phased production capacity reaching up to 80,000 wafers, and aims to
reduce India’s reliance on semiconductor imports. This initiative supports Prime Minister
Narendra Modi’s goal of making India a tech powerhouse, complementing other significant
projects like Tata Group’s $11 billion chip facility in Gujarat.
Reliance Infrastructure Eyes EV Market, Taps Former BYD Executive for Advisory Role
Reliance Infrastructure, part of Anil Ambani’s Reliance Group, is exploring plans to enter the
electric vehicle (EV) and battery manufacturing space in India, according to sources. The
company has hired former BYD India head Sanjay Gopalakrishnan as a consultant to advise on
the project and has engaged external consultants for a cost feasibility study. The proposed plant
is expected to have an initial capacity of 250,000 vehicles annually, with plans to scale up to
750,000. Additionally, the company is evaluating the feasibility of building a 10 GWh battery
plant, with potential expansion over the next decade.
This move could set up direct competition between Anil Ambani’s Reliance Infrastructure and
his brother Mukesh Ambani’s Reliance Industries, which is already active in battery
manufacturing and recently secured government incentives for 10 GWh of battery cell
production. While the Indian EV market remains small—less than 2% of the 4.2 million cars
sold last year—the government aims to increase EV penetration to 30% by 2030, offering over
$5 billion in incentives. Reliance Infrastructure’s plans are expected to be finalized in the coming
months, potentially positioning the company as a key player in India’s burgeoning EV sector.
https://theprint.in/india/exclusive-indias-reliance-infra-weighs-ev-push-taps-ex-byd-exec-
sources-say/2255975/
Editor’s Note: Reliance Infrastructure, part of Anil Ambani’s Reliance Group, is planning
to enter the electric vehicle and battery manufacturing market in India, hiring former BYD
India head Sanjay Gopalakrishnan as a consultant. The proposed plant will start with an
annual capacity of 250,000 vehicles, scaling up to 750,000, and is also considering a 10
GWh battery plant with future expansion. This move could lead to competition with
Mukesh Ambani’s Reliance Industries, which is already involved in battery manufacturing
and has secured government incentives, as the Indian government aims for 30% EV
penetration by 2030.
GIGABYTE Explores AI Growth Opportunities in India with India-Taipei Association
On August 29, GIGABYTE, the global computer brand, and the India-Taipei Association held
discussions aimed at capitalizing on India’s booming market potential. GIGABYTE is enhancing
its presence in India by focusing on AI-driven PC innovations and expanding the country’s AI
ecosystem. The company has strengthened its partnerships with Intel, NVIDIA, and AMD to
maximize AI chip performance and is collaborating with the Indian government to explore
growth opportunities. GIGABYTE’s AI-focused strategy targets sectors like gaming, education,
and SMEs, aiming to make computing solutions more intelligent and responsive to user needs.
Tony Liao, Vice President of GIGABYTE Technology, emphasized India’s significance to the
company’s growth plans, committing to doubling its investment in the country’s AI
infrastructure every three years. He pointed to India’s rapidly growing economy and vibrant IT
sector as key reasons for the company’s strategic focus. Manharsinh Laxmanbhai Yadav,
Director General of the India Taipei Association, echoed these sentiments, highlighting how
GIGABYTE’s AI innovations, including the AORUS 16X and G6X AI Gaming Laptops, align
with India’s technology landscape. The company’s AI Top series hardware is set to launch in
India in September, further bolstering its commitment to driving technological advancement in
the region.
https://www.business-standard.com/content/press-releases-ani/gigabyte-and-india-taipei-
association-explore-growth-opportunities-in-india-124090500364_1.html
Editor’s Note: On August 29, GIGABYTE and the India-Taipei Association discussed
expanding GIGABYTE’s presence in India by focusing on AI-driven PC innovations and
enhancing the country’s AI ecosystem. The company, which has strengthened partnerships
with Intel, NVIDIA, and AMD, plans to double its investment in India’s AI infrastructure
every three years, targeting sectors like gaming, education, and SMEs. GIGABYTE’s
upcoming AI Top series hardware and its strategic focus on India’s growing IT sector
reflect its commitment to driving technological advancement in the region.