Weekly News Updates-January 3 -January 9

India rises ranks second at MSCI EM index weightage; Tamil Nadu in $4.4 billion deal with Pegatron and Tata; Foxconn is losing its long-time country head; India to host an EV battery plant for VinFast; Quality norms for electrical accessories get regulations; Indian Railways to get assistance from USAID/India

India rises to second spot in MSCI EM index weightage

In the MSCI Emerging Markets index, India has surged second place after China and confirm its appeal as an emerging market investment.

According to a new analysis from Nuvama Institutional Equities, India’s position in the MSCI Emerging Markets index increased significantly over the course of eight years, from 7% to 17.1%. It is expected to rise even more, to 20% by early 2024.

In the MSCI EM pack, India’s share remained constant at approximately 8% from October 2015 and October 2020. Nonetheless, India’s share has almost doubled since November 2020 and is now 17.1%.


小編點評:指數中的權重提升反映出印度作為新興市場投資目的地的吸引力不斷增加。這一發展可能會引起國際投資者更多的關注,表明他們對印度經濟前景和穩定性的信心。由於預計印度在MSCI EM指數中的份額將進一步增加,到2024年初可能達到20%,這為外國直接投資(FDI)的流入提供了一個引人注目的機會。尋求多元化和接觸充滿活力的新興市場的投資者可能會將印度視為一個有吸引力的目的地,這可能導致外國資本的湧入,有助於經濟增長和發展。

Tamil Nadu in $4.4 billion deal with Pegatron and Tata among other investors

Tamil Nadu, a state in southern India, announced on Sunday that it signed investment agreements totaling more than $4.39 billion with companies like Hyundai Motors, a major automaker, and Tata Electronics and Pegatron, suppliers to Apple.

As the tech giant prepares to shift some production away from China, Apple is depending on India as the next big growth engine. Pegatron is working towards a second factory in the country, where Tata Group started assembling iPhones last year.

At the time of signing of agreements, the state government said that Tata Electronics, a division of the Indian conglomerate, had committed to investing 120.8 billion rupees for mobile phone assembly operations.


Foxconn is losing its long-time country head Foulger
富士康印度子公司Bharat FIH總經理福爾格將離開

Just as the company is seeking to expand in South Asia, Foxconn Technology Group is losing a longstanding executive in India.

According to reports, Josh Foulger, the country head of Foxconn’s Bharat FIH division, is leaving the company after nine years. Reports stated that his last day will be this month and his future plans were not immediately apparent.

Bharat FIH gradually lost market share to Xiaomi as the Chinese company looked for more regional partners. As the government of the nation pushed manufacturers to collaborate more with Indian suppliers, Xiaomi added local competitor Dixon Technologies India Ltd. as a smartphone assembler last year.


India to host an EV battery plant for VinFast

According to Reuters and TechCrunch, VinFast, a Vietnamese company, plans to open its first production unit in Thoothukudi district, Tamil Nadu, India. This plant will include an EV and battery manufacturing facilities.

With a potential annual production capacity of up to 150,000 automobiles, the construction is anticipated to start in 2024 and generate between 3,000 and 5,000 job possibilities in the area. The battery facility’s capacity was not mentioned in the statement.

Tamil Nadu, the southernmost state of India, is a major center for the country’s automobile industry. Facilities are already in place for well-known businesses like BMW, Hyundai Motor, Renault-Nissan, and BYD as well as regional producers of electric two-wheelers like Ather Energy and Ola Electric.



Regulations imposed by the government on quality norms for electrical accessories

To reduce the import of sub-standard goods and increase domestic production of electrical accessories such as switch socket outlets and cable trunking, the government has established mandated quality standards.

On January 1st, 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) published the Electrical Accessories (Quality Control) Order, 2023.

This order prohibits the production, sale, trade, importation, and stocking of goods without the Bureau of Indian Standards (BIS) mark.



Indian Railways to get assistance from USAID/India to fulfil Mission Net Zero Carbon Emission by 2030

The United States for International Development/India (USAID/India) and India signed a Memorandum of Understanding on June 14, 2023, to support Indian Railways in achieving Mission Net Zero Carbon Emission by 2030.

Through the MoU, Indian Railways has a forum to communicate and exchange the most recent advancements and industry information.  The MoU facilitates training and seminars/workshops focusing on specific technology areas like Renewable Energy, energy efficiency, and other interactions for knowledge sharing; utility modernization; advanced energy solutions and systems; regional energy and market integration; and private sector participation and engagement.

Earlier, IR collaborated with USAID/India with a focus on the installation of rooftop solar power throughout railway platforms.