Weekly News Updates-India Aug 9 to Aug 15

Govt plans up to Rs 50,000 crore outlay to subsidize EVs; Maya OS to replace Windows in India’s defense ministry; India becomes second-biggest mobile manufacturer; ; IT hardware manufacturers to have more time to manufacture products in India; No proposal to restrict the import of more electronic items; No proposal to restrict the import of more electronic items; India begins to implement a special plan for high-end EVs; SK Hynix denies negotiation, collaboration with SRAM & MRAM chip plant; Foxconn increases commitment for $550 million in Telangana

Govt plans up to Rs 50,000 crore outlay to subsidize EVs: FAME-III scheme

The initial draft of the third phase of the FAME, or Faster Adoption and Manufacturing of Electric Vehicles Scheme, has been developed by the Union Government. After consulting with the sector and holding inter-ministerial discussions, the government is considering spending between Rs 40,000 and Rs 50,000 crore on FAME-III, sources said.

Another source claimed that in addition to electric two-wheelers, three-wheelers, cars, and buses, the government is also likely to provide FAME subsidy support for electric trucks, bicycles, and quadricycles. The infrastructure needed to enable electric buses and charging stations might receive a large allocation.


Editor’s Note: The FAME scheme was introduced in 2015 as a means of subsidizing electric vehicles. It was divided into two phases: the first had a budget of about Rs 800 crore, which eventually rose to roughly Rs 900 crore by another Rs 100 crore, and the second had Rs 10,000 crore.  Under the FAME II scheme, over 8.7 lakh automobiles have received subsidies over the past four years. This is beneficial for Taiwanese companies looking at entering/expanding to India market.

小編點評:FAME計劃於2015年推出,作為對電動車輛提供補貼的政策。該計劃分為兩個階段:第一階段的預算約為80億盧比,最終增加了約10億盧比,達到約90億盧比,而第二階段的預算為1000億盧比。在FAME II計劃下,過去四年中已有超過87萬輛汽車獲得了補貼。這對於計劃進入/擴展印度市場的台灣企業是有益的。

India becomes second-biggest mobile manufacturer, overtakes China
印度超過中國 成為全球第二大手機生產國

According to a new analysis, local mobile phone shipments under the “Make in India” initiative exceeded 2 billion total units throughout the period of 2014 to 2022, achieving a 23% CAGR. The “Made in India” service report from market research firm Counterpoint Research claims that this is due to strong domestic demand, rising digital literacy, and government initiatives. India is now the second-largest producer of mobile phones in the world.

The Indian government has launched several schemes and initiatives including the Phased Manufacturing Programme (PMP), Make in India, Production Linked Incentive (PLI), and Atma-Nirbhar Bharat (Self-Reliant India) in an effort to promote domestic manufacturing and value addition.


Editor’s Note: Over the years, the manufacturing of mobile phones has increased significantly as a result of numerous initiatives that the Indian government has introduced and carried out. To encourage local manufacture and value addition as part of the “Make in India” strategy, the government over time increased import taxes on specific critical components and totally completed units as well as the Phased manufacture Programme. All of this has resulted in an increase in Indian exports. Product companies from Taiwan who look at Indian market should be aware of India’s direction for Phased Manufacturing Programme (PMP) as direct import of finished products many not be a viable business in long run. The recent regulation of Laptop & Tablet can also be looked at on this background.


Center to allow IT hardware manufacturers more time to manufacture products in India
若業者提出將於印度製造的詳細規劃 中央政府將為該業者延緩電子產品進口限制令

According to the most recent information on import restrictions on laptops and tablets, the Centre is willing to allow foreign companies extra time to establish manufacturing facilities in India after they submit a detailed proposal for the same. 

Reports suggest that the government may ease the licensing requirements for the import of particular items, including tablets and small form factor computers, provided it is satisfied with the recommendations made by the companies.

The objective is to encourage globally successful businesses like Apple, Dell, and HP to start manufacturing gadgets in India. Reports also say that the government keeps in touch with foreign companies to discuss the timelines and strategies for production in India.


No proposal to restrict the import of more electronic items

According to Commerce Secretary Sunil Barthwal, there are currently no plans to put import restrictions on other electronic products.

In order to decrease imports from countries like China and increase domestic production, the government has decided to impose import restrictions on laptops, personal computers, and some other additional electronic products beginning on November 1. According to Barthwal, there is a production-linked incentive (PLI) scheme for the manufacturing of electronics and mobiles. 


Editor’s Note: The above 2 news items are an update on the import restrictions on Laptops and Tablets, etc. which we covered in our earlier News Update editions.


India begins to implement a special plan for high-end EVs

A new EV strategy similar to phased production plan (PMP) is being considered by the government.

This is a plan to attract major players in the global car industry, like Tesla, to the market for high-end electric automobiles. According to reports, the new plan is likely to be company-neutral, address the demands of the entire sector, and contribute to strengthening the Indian EV ecosystem.

The government anticipates that its incentives will both meet domestic demand and build a foundation for exports. Without having a detrimental effect on indigenous firms like Tata Motors and Mahindra, which are investing a significant amount of money in the EV area, these incentives are also anticipated to aid in the development of capacity in a new segment.


Editor’s Note: This news can be looked at in continuation of the above 3 news articles. The PMP is to be extended to the EV segment. The basic principle of the plan is that enterprises would gradually increase their level of localization with the use of a phased manufacturing program.


Foxconn increases commitment for $550 million in Telangana

Foxconn has announced plans to “add another $400 million” to their investment in India. The largest supplier to Apple is likely to use the new Kongarkalan factory to produce AirPods and other electronic accessories.

According to V Lee, a representative of Foxconn India, the Board of Directors of FIT Hon Teng Ltd (Foxconn) has approved a $400 million investment in Telangana. Telangana Minister for IT and Industries KT Rama Rao tweeted on August 12 in response to V Lee’s post, stating that the new investment plan is in addition to the $150 million previously promised.

The $400 million investment by Foxconn Interconnect Technologies into its Telangana project has been approved by the company’s board of directors, bringing the total commitment to $550 million. The company informed the Hong Kong Stock Exchange of the board’s decision.


Maya OS to replace Windows in India’s defense ministry
印度國防部經以自行研發的Maya OS 替代Windows系統

According to a recent article in The Hindu, a new operating system known as Maya OS would be used by all ministry computers that require the internet. The Indian Defence Ministry has made Maya OS mandatory for all computers due to an increase in cyberthreats. Linux-based Maya OS will now take the role of Windows on all ministry computers.  It is similar to Microsoft Windows and is based on the free and open-source operating system Linux, making the switch easier.

All Ministry of Defence computers in the South Block that were online before to August 15 had Maya OS installed on them, according to the story, which quotes a government official.

While the Air Force and the Army are now evaluating the operating system, the Navy has given their approval.