Latest news with #GlobalCapability
The Print
3 days ago
- Business
- The Print
TN confident of retaining Apple despite US tariff threat—state planning commission official J Jeyaranjan
'Finally, everything comes down to the economics of it. The supply chain we have developed here, and what is developing now is as good as in China. The supply chain is not there (US) and they have to create it. You cannot create it overnight. Even if you create it, (the prices) will be four or five times higher than what they are now,' Jeyaranjan said to ThePrint. In a conversation with ThePrint, Tamil Nadu State Planning Commission's Executive Vice-Chairperson J. Jeyaranjan said it was impossible for Apple to shift the manufacturing units from Tamil Nadu to the US, given the cost of manufacturing. Chennai: Despite US President Donald Trump's threat to impose a 25 percent tariff on iPhones not made in the US, Tamil Nadu remains confident of retaining Apple, citing the strong supply chain it has built in the state over the years. According to the state's industries department, Tamil Nadu accounts for 70-80 percent of the iPhones sourced from India, where only Tamil Nadu and Karnataka manufacture iPhones. TN is also home to Apple's key vendors Foxconn, Pegatron, and Tata Electronics, while Karnataka hosts Wistron. According to Jeyaranajan, Tamil Nadu is on its way to becoming a $5 trillion economy by 2047. 'The Tamil Nadu chief minister asked us to work out where we will be by 2047 before going to the NITI Aayog meeting. I expected the economy to be around $4 trillion, but when we ran the numbers—assuming the same growth rate, inflation, and dollar value—you'll be surprised to learn that Tamil Nadu is set to become a $5 trillion economy by 2047, the 100th year of independence,' Jeyaranjan said, adding that this was a reasonable projection. When asked about the HCL-Foxconn semiconductor joint venture setting up its wafers manufacturing plant in Uttar Pradesh, which was originally planned to be set up in Tamil Nadu, Jeyarajan said that the state was facing challenges in terms of allocating space for industries. However, he added that despite the constraints, companies are coming in a big way to Tamil Nadu. 'Whoever has already come here is staying here, and new companies are also coming here. For instance, Global Capability Centres were not there in the city and we made conscious efforts to bring them here, and today, we are second in terms of hiring spaces for work to establish GCCs. The size of export was hardly around a billion USD in 2021 and today it has crossed 15 billion USD,' Jeyaranjan said. Also read: Israeli film fest in Chennai postponed amid backlash for 'legitimising' Netanyahu govt's actions in Gaza How Tamil Nadu will become a $5 trillion economy After DMK came to power in 2021, Tamil Nadu Chief Minister M.K. Stalin announced that he would make Tamil Nadu a trillion USD economy by 2030. When asked about Tamil Nadu's current progress toward the $1 trillion target, Jeyarajan said the state is on track to achieve it, though recent projections suggest it may be delayed by a year. Stating that Tamil Nadu is one of the fastest growing economies in the country, he said, 'One trillion USD economy is not a fancy number, but a consciously set target with respect to the growth of the state. In fact, our aim is to triple the state's GSDP,' Jeyarajan said. He also explained to ThePrint how Tamil Nadu will achieve the $1 trillion target by 2030 and $5 trillion by 2047. 'Unlike other states, the growth process in Tamil Nadu is not driven by current economic policies alone. The growth is conditioned and guided by the social change we have brought in the past 100 years or so. By democratising education, we have empowered people from various communities across various sections of the society. Once you start growing, you cannot derail it or stop it,' he said. Jeyaranjan said that the long-term efforts of the state government over the years have now started to pay 'dividends'. 'If you look at our Gross Enrolment Ratio, India stands at around 26-27 percent, while Tamil Nadu is at 50-51 percent. This is because the state has successfully extended education to all sections of society,' he said. He also explained that the state government's policies empowering women has paid off in the long run, which can be seen in college enrolment and employment numbers. 'The state government provides an incentive of Rs 1,000 per month to girls who studied in government schools and pursued higher education. As a result, girl enrollment increased by 30% last year. As a continuation, in Tamil Nadu Public Service Commission, the state has 30 percent reservation for women. Now the number of women getting into TNPSC is more,' Jeyaranjan said, adding that the number of women in TNPSC has surpassed 30 percent. The state government has also been implementing a slew of other schemes to empower women, including Rs 1,000 in monthly financial assistance and free bus travel for women. He also gave an example of how the government has allocated funds to administer HPV vaccines to all girl children. 'It will prevent so many cases of cervical cancer. You will reap the benefits only after 30 years. That is the kind of investments we make,' he said. Why Tamil Nadu lags compared to other southern states in IT Although Tamil Nadu is considered a major contributor to software exports, it still has fewer IT companies compared to Bengaluru in Karnataka and Hyderabad in Telangana. On the limited opportunities in the IT sector, despite establishing the state's first IT park in 1996, Jeyarajan said that Tamil Nadu has been facing certain challenges in attracting more IT companies. 'When the IT revolution came, during the first 5 years, we slept. When the first IT park was built in 1996, we had already lost 5 years. By that time, Bangalore was ahead and it already had the advantage of having Bharat Electronics and the Indian Institute of Science. Most of the founders of IT companies were from Bengaluru. Since it was a containment town, it had a cosmopolitan culture compared to us. Their lifestyle was different, but here we were more conservative,' he explained. When it comes to Hyderabad, he said that the amount of land available in the state's headquarters was a point of attraction for IT firms. Jeyaranjan also pointed to the lack of evening and night life in Chennai as one of the reasons for fewer IT companies in the state compared to other southern states. Nevertheless, he said that there are plans to improve the evening and night life in Chennai and policies to that effect will be announced soon. (Edited by Zinnia Ray Chaudhuri) Also read: PMK founder Ramadoss says son Anbumani 'held his feet & cried' for tie-up with BJP for 2024 LS polls
Time of India
5 days ago
- Business
- Time of India
MeitY forms panel to create national framework for GCCs
Live Events The ministry of electronics and IT has formed an industry-led panel to help boost the growth of global capability centres (GCC) in India, people aware of the plans said, seeking to create the necessary national framework announced in the federal budget. Collectively, they have a revenue base that already exceeds a fourth of India's much older $250-billion outsourcing body Nasscom , GCC-enablers Zinnov Consulting and ANSR, audit and advisory firm KPMG , and investment promotion agency Invest India are members of the committee formed last month, sources told government in the February budget had said it will develop a framework 'as guidance to states for promoting Global Capability Centres in emerging tier 2 cities.' This would suggest measures for enhancing availability of talent and infrastructure, building bylaw reforms, and mechanisms for collaboration with committee is likely to meet for the first time in coming weeks and has a term of one year, sources added.'With GCCs having gone mainstream, the government's policy construct needs to transition from an incentive framework to an innovation framework,' said Ramkumar Ramamoorthy, partner at tech growth advisory firm Catalincs.'With global companies spending a significantly higher percentage of revenues on R&D and innovation, the new policy framework on GCCs should catalyse technology transfer, enable local IP creation and global integration, drive cross-border industry-academia collaboration and research and create ways for multi-directional flow of money, and create a platform for greater collaboration among players with the startup ecosystem.'The framework should help connect the dots across multiple standalone policies on IT, hardware, GCCs, startups, deeptech, education and skilling, data security and intellectual policy, and not look at technology-enabled opportunities in silos, Ramamoorthy of the committee did not respond to ET's queries by press time on has more than 1,760 GCCs with an average of one to two GCCs being added every week, as per industry estimates. This is expected to reach 2,200 by currently employ about 1.9 million people in the country and generate $64.6 billion in revenues, as per a Nasscom-Zinnov is projected to reach about $99-105 billion by FY2030, employing 2.5-2.8 million industry has flagged taxation, particularly the 'safe harbour' policy, as a major hurdle to the ease of doing these rules, the income tax authorities accept the transfer price declared for certain international transactions, to provide relief to multinationals which have set up GCCs in India. In March, the government in an interim notification increased the eligibility turnover threshold to Rs 300 crore from Rs 200 the new level is way below Nasscom's recommendation of Rs 2,000 present, 95% of the eligible companies are not opting for the benefit due to litigation fears. Relaxing the rules will help the ambitions of the central and state governments to attract more GCCs to set up shop in India, according to industry experts.'A significant hurdle GCCs are facing is the lack of a uniform, standardised definition of a GCC across various Indian ministries and state governments with their GCC policies,' said Alouk Kumar, CEO, Inductus which helps GCCs set up in India. 'This absence creates considerable regulatory ambiguity for multinational corporations looking to set up or expand.'Regulatory and compliance burdens, including intricate tax structures like transfer pricing, complex SEZ regulations, and evolving data localisation mandates demand immediate attention, Kumar incentives across states are uneven and often insufficient, Kumar demand–supply gaps in talent, especially now that there is a greater focus on specialised AI, data science, and cybersecurity skills among GCCs, risks bottlenecking innovation and eroding the cost advantage that drew captives to cities like Bengaluru, Hyderabad, Mumbai, Chennai, and Delhi are the major GCC states have come out with GCC policies with sops to attract multinationals to set up, the latest being Uttar Pradesh earlier this month. States like Tamil Nadu and Karnataka also have policies with provisions such as payroll subsidies and incentives to expand to smaller reported in December that states like Madhya Pradesh, Telangana and Andhra Pradesh are also drafting their own GCC policies
Time of India
6 days ago
- Business
- Time of India
Bengaluru joins elite global tech powerhouses with workforce surpassing 1 million: CBRE report
Bengaluru has established itself among the world's top technology hubs, crossing the milestone of a 1 million-strong tech workforce, according to a new report by real estate consultancy CBRE. The 'Global Tech Talent Guidebook 2025' evaluates 115 markets worldwide based on availability, quality, and cost of tech talent, categorizing them into Powerhouse, Established, and Emerging markets. The report identifies Bengaluru as one of the 12 global "Powerhouse" tech markets, placing it alongside global giants such as Beijing, Boston, London, New York Metro, Paris, San Francisco Bay Area, Seattle, Shanghai, Singapore, Tokyo, and Toronto. 'Bengaluru is the largest tech talent market in the Asia-Pacific region, along with Beijing and Shanghai, with its tech workforce exceeding 1 million (10 lakh),' the report stated, highlighting the city's vital role in the global innovation landscape, quoted PTI. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, commented, 'Bengaluru's emergence as a global tech powerhouse reflects India's strategic depth in digital innovation, AI, and talent readiness.' He further noted the growing prominence of other Indian cities, saying, 'What's even more promising is the parallel growth story unfolding in cities like Delhi-NCR, Mumbai, Ahmedabad, and Jaipur, each contributing uniquely to India's diversified and resilient tech ecosystem.' The report underlines Bengaluru's leadership in AI talent development, with the city housing the largest concentration of AI professionals in India—on par with leading U.S. tech clusters such as San Francisco and New York. Demographically, Bengaluru ranks fourth among the 12 powerhouses in working-age population, with 75.5% of its residents in this group, and has witnessed a 2.4% increase in working-age population between 2019 and 2024. Bengaluru's startup environment, supported by 28 unicorns, benefits from conducive regulations and strong institutional backing. CBRE attributes much of the city's success to top educational institutions and Global Capability Centres (GCCs) that fuel a steady pipeline of skilled professionals in AI, data science, engineering, and product development. These factors have driven a 12% rise in tech employment between 2018 and 2023, aligning with global trends, the report said. This solid foundation has also attracted significant venture capital funding, with Bengaluru securing 140 VC deals worth $3.3 billion in 2024 alone, including 34 focused on AI. Comparatively, Delhi-NCR closed 183 deals worth $1.9 billion, with 42 in AI, bolstered by 15 unicorns and 16 IPOs. Mumbai followed closely with 167 deals totaling $4.9 billion, including 26 in AI, supported by 7 unicorns and 47 IPOs. 'The distribution of tech talent around the world is the result of many factors that have increased demand for tech workers beyond large tech clusters and into smaller and specialised markets. These factors include labour market conditions, quality of life, demographics, educational attainment, capital funding and the availability and cost of real estate,' said Magazine. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
6 days ago
- Business
- Business Standard
Bengaluru among top 12 global tech hubs as AI talent hits 1 million
Bengaluru has been named one of the top 12 global tech 'powerhouse' cities in CBRE's Global Tech Talent Guidebook 2025, joining heavyweights like San Francisco, London, Beijing, and Tokyo. The city's tech talent pool has now surpassed one million, placing it among the world's leading technology hubs out of 115 markets surveyed. The report classifies markets as Powerhouse, Established, or Emerging based on talent size, competitiveness, and cost. Bengaluru leads in India's AI talent boom Bengaluru leads India in AI talent and is emerging as a serious competitor to US tech strongholds. Between 2018 and 2023, the city's tech employment grew by 12 per cent, driven by its robust startup ecosystem, 28 unicorns, and investments in AI, data science, and product engineering. Favourable demographics also play a role: 75.5 per cent of Bengaluru's population is of working age—the fourth-highest ratio among the top 12 hubs. This segment grew by 2.4 per cent between 2019 and 2024, ensuring a sustained talent pipeline. In 2024, Bengaluru attracted 140 venture capital (VC) deals worth $3.3 billion, including 34 deals in AI. The presence of leading educational institutions and Global Capability Centres (GCCs) has helped anchor strategic functions locally. Anshuman Magazine, chairman & CEO of CBRE India, South-East Asia, Middle East & Africa, said, 'Bengaluru's rise to global tech powerhouse status reflects India's strategic depth in digital innovation and talent readiness. What's even more promising is the parallel growth unfolding in cities like Delhi-NCR, Mumbai, Ahmedabad, and Jaipur—each contributing uniquely to India's resilient tech ecosystem.' Delhi-NCR and Mumbai stand out The report also highlights Delhi-NCR and Mumbai as key innovation hubs. In 2024, Delhi-NCR closed 183 VC deals worth $1.9 billion, including 42 in AI. Mumbai recorded $4.9 billion in funding across 167 deals, making it one of India's most capital-rich corridors. Emerging cities like Ahmedabad and Jaipur are also gaining traction. Ahmedabad's growth is supported by GIFT City, expected to host 550 firms and employ over 20,000 people. Jaipur, with its strong educational base and lower costs, is attracting startups and IT firms seeking operational efficiency. AI talent drives global corporate strategy Ada Choi, head of research - APAC at CBRE, noted, 'The size and depth of a city's tech talent pool are increasingly influencing corporate location strategies and real estate demand. As companies pursue transformative technologies like AI, they are casting a wider net globally. Bengaluru and other Indian cities are well-positioned to benefit from this shift.' The report added that labour and real estate remain the largest costs for non-manufacturing tech firms. India, US lead in global AI talent Globally, AI-focused tech investment reached $129 billion in 2024. The Asia-Pacific region is home to three of the world's largest tech talent pools: Beijing, Bengaluru, and Shanghai—each with more than one million workers. India and the US continue to lead in AI development talent. As companies expand their search for cost-effective and skilled workforces, Bengaluru is increasingly seen as a strategic tech destination—not just an outsourcing hub.
Time of India
7 days ago
- Business
- Time of India
US runs 'hidden surplus', not trade deficit, with India: GTRI report
AI-generated image US President Donald Trump's frequent accusations that India unfairly benefits from trade with the United States are based on an incomplete picture, the Global Trade Research Initiative (GTRI) has claimed in a detailed new report. Challenging Trump's narrative of a large trade deficit, the report argues that when broader economic engagements are considered, India actually fuels significant US profits- what GTRI termed a 'hidden surplus". Trump had claimed on February 13 that the United States suffered a $100 billion trade deficit with India. However, GTRI's analysis places the actual trade deficit for 2024–25 at $44.4 billion, significantly lower than the President's figure. Additionally, the report highlights a 'hidden surplus' in the broader US-India economic relationship. According to GTRI founder Ajay Srivastava, the United States earns an estimated $80-85 billion annually from India through multiple sectors including education, digital services, financial operations, intellectual property royalties, and defence sales. "This trade deficit narrative is misleading and incomplete," said Srivastava, quoted by ANI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Zenuwen heropbouwen? Nachtelijke gewoonte om de grondoorzaak van neuropathie aan te pakken KneeTens Undo "These massive earnings don't show up in the narrow goods trade statistics. When you factor them in, the US isn't running a deficit with India at all -- it's sitting on a USD 35-40 billion surplus," he added. Srivastava further stated that Indian students alone contribute around $25 billion each year to the US education sector. American technology companies generate between $15–20 billion from India's expanding digital market, while financial firms based in the US earn between $10–15 billion. Additionally, Global Capability Centres operated by US companies in Indian technology hubs bring in another $15–20 billion annually. Other significant earnings arise from US pharmaceutical companies, which make $1.5-2 billion, the automotive sector with $0.8-1.2 billion, the entertainment industry with $1–1.5 billion, and sustained arms and defence exports. The report advised the Indian government to adopt a confident and assertive position in its ongoing trade talks with Washington. It suggests that negotiators resist inflated deficit claims and instead highlight India's significant contributions to American economic prosperity. According to the report, any future Free Trade Agreement should reflect the comprehensive and mutually beneficial nature of the bilateral relationship. Also read: US tells WTO that India has no basis to impose retaliatory duties on 29 American products These findings come at a critical time, as India and the United States advance towards signing the initial phase of a Bilateral Trade Agreement, expected before July. The negotiations are being led by Commerce Minister Piyush Goyal, with both sides aiming to strengthen trade ties and ensure a more balanced framework. A senior-level delegation from the United States is also scheduled to visit India shortly to conduct what might be the concluding discussions regarding the proposed temporary trade deal between both nations, according to various sources cited by PTI. Read more: India pushes to dodge Trump's 26% tariff as US officials head to Delhi for last-lap trade deal talks Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
