Weekly News Updates-India Sep 20 to Sep 26

Global hardware players in talks with local firms; Korean trade team visits India eyeing Indian display industry; India's first green hydrogen fuel cell public bus starts its operation; Government issues final Angel Tax rules; Micron begins construction of semiconductor plant in Gujarat; India's startups ranked fourth globally.

Global hardware companies intensify discussions with local companies to manufacture under PLI

According to a report by The Economic Times, leading global hardware brands, including Asus India, Acer India, HP, and Lenovo, are in talks with local companies that have applied for a revised production-linked incentive (PLI) scheme for making laptops, desktops, and servers in India. The companies want to assist India in meeting its target of 70% domestic production.

Rajeev Chandrasekhar, the Minister of State for Electronics and IT, announced last week that the Centre hopes to minimize reliance on imports from dubious sources by up to 70% by producing up to 70% of the nation’s IT hardware needs locally over the next three years.


Editor’s Note: Incentives schemes and regulations are prompting global companies to increase value addition locally. Many Indian EMS companies are open for collaboration with foreign companies. The report states that Taiwanese companies such as Acer and Asus have also informed about their plan of collaborating with Indian companies. 

Korean trade team looking into prospective opportunities in the Indian display industry

A prominent South Korean business team traveled to India to look into potential joint ventures and investments in the high-tech display industry. The delegation was in India at Vedanta Group’s invitation and was led by the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Display Industry Association (KDIA).

The delegation visited Dholera SIR, Ahmedabad, Mumbai, and New Delhi to meet with important players in an effort to get firsthand knowledge of prospective investment prospects in the nation. The delegation spent time in the Invest India office on the last day of their tour, when the Korea Plus and Invest India teams displayed the vast potential that await foreign companies eager to collaborate with the Make in India project.

Editor’s Note: The report points that high-tech manufacturing is also being explored by foreign companies in India. This will be the right time for Taiwanese companies to explore moving manufacturing to India considering the global trend and also the investment climate.

India’s first green hydrogen fuel cell public bus starts its operation

According to the Press Information Bureau (PIB), Union Minister of Petroleum & Natural Gas Hardeep Singh Puri will inaugurate India’s first green hydrogen fuel cell bus at Kartavya Path in Delhi on Monday. The initiative is a part of Indian Oil’s attempts to test 15 fuel cell buses that are powered by green hydrogen on predetermined routes across Delhi, Haryana, and Uttar Pradesh.

This project marks a significant milestone as it is the first-ever initiative in India to provide green hydrogen at 350 bar pressure for fuel cell bus operation. At its R&D site in Faridabad, Indian Oil has also built a refueling station that can refill green hydrogen created through electrolysis using solar PV panels.


Editor’s Note: India is engaged in exploring various sources of clean energy and the pace of transformation is fast. This opens up huge opportunity considering the sheer size of the country and its population. This news is a tip for companies who are looking at exploring hydrogen fuel-based business opportunities in India.

Government issues final Angel Tax rules

With effect from September 25, unlisted firms issuing shares at a price above their fair market value will be subject to an angel tax of 30.6% in an effort to reduce overvaluation and ensure transparency in capital transactions. The Angel Tax regulations for valuing equities and compulsorily convertible preferred shares issued by companies to resident and non-resident investors were announced by the center late on Monday.

The Budget for 2023–24 expanded the scope of the angel tax to include non–resident investors, demonstrating the government’s commitment to regulating financial activities within startups and ensuring proper value evaluations. Previously, angel tax only applied to investments made by a resident investor.

According to the budget, the excess premium would be taxed at a rate of up to over 30% because it is “income from sources.” However, the DPIIT (Department for Promotion of Industry and Internal Trade) exempts startups that have registered from the new standards.


Editor’s Note: This is expected to ease some of the issues of foreign investors. Earlier the Angel Tax was levied only on investments made by local investors. Now it expanded its scope to cover non-resident investors as well.

Micron begins construction of semiconductor plant in Gujarat

The $2.75 billion assembly, testing, and packaging plant (ATMP) of US-based chipmaker Micron Technology, Inc. was officially launched in Sanand, Gujarat.

The event was held in Sanand at the Gujarat Industrial Development Corporation (GIDC) industrial area, where the company has been given 93 acres of land for the undertaking.

Tata Projects stated in a statement that the contract’s award “solidifies the company’s proficiency in large-scale, sustainable infrastructure development in the Indian manufacturing landscape.”


Editor’s Note: The project is the India Semiconductor Mission’s (ISM) greatest investment to date. On Saturday, Tata Projects announced that it would be working with Micron Technology to build an advanced semiconductor assembly and test facility in Sanand. The company also stated that it would begin shipping semiconductor chips the following year.


India’s startups in fourth place globally with declared VC funding of above $50 million 

India ranks fourth internationally among firms that have received more than $50 million in declared venture capital (VC) investment, according to the most recent Startup Genome Scaleup Report.

In terms of revealed VC funding for startups, only the United States, China, and the United Kingdom have overtaken India, according to a report by the policy advisory and research firm.

Out of the 12,400 startups surveyed in 80 locations across 40 nations, there were 7,184 scaleups in the US, 1,491 in China, 623 in the UK, and 429 in India. However, India outperformed the UK in terms of total VC investments made to scaleups and their cumulative tech value investment.