Latest news with #GlobalValueChains
News18
18-07-2025
- Business
- News18
China's Moves Threaten India's Rs 2.6 Lakh Cr Smartphone Export Push, Warns Industry Body
Last Updated: China's actions are disrupting India's $32 billion export-linked manufacturing ambitions, warns ICEA. China's attempt to hamper India's manufacturing push of becoming a global hub seems to be working as the Industry representative of smartphone and electronics manufacturers, ICEA, has raised the alarm against the derailment threat on $32 billion export-linked manufacturing ambitions. The Industry body sought the urgent meeting with the government, as per the MoneyControl report, to consider the the series matter as these disruptions are causing trouble to the industry and backtracking the hard-won competitiveness and gains under the Production Linked Incentive schemes. ICEA represents major players like Apple, Foxconn, Lava, Dixon, Google, Tata Electronics, Flex, Oppo, Vivo and Xiaomi has sent the letter to the Prime Minister's Office, Ministry of External Affairs and DPIIT, as per MoneyControl report. It came amidst iPhone-manufacturer Apple's push to shift its manufacturing facilities to India from China. Five years back, Apple used to produce all its iPhone sold globally in China. But now the US company via its contract manufacturers Foxconn (Hon Hai) and Tata Electronics has been rapidly shifting production to India, accounting 20% of global iPhone output. Experts say these bottlenecks, if left unresolved, could roll back recent momentum and hamper India's ambitions of deeper participation in Global Value Chains (GVCs). What makes the situation more complex is that these measures are reportedly being executed in a phased and deliberate manner by Chinese authorities—through informal, verbal instructions to the General Administration of Customs (GAC), without any official circulars or involvement from the Ministry of Commerce (MOFCOM). 'These disruptions are leading to operational inefficiencies, impacting scale and above all raising costs of production, since producing this equipment locally or in collaboration with Japan or Korea costs 3-4 times higher than Chinese imports," ICEA highlighted. Smartphone Becomes Top Exported Product Of Country Earlier, the government data as cited by PTI report revealed that India's smartphone exports increased five fold to the US and about fourfold to Japan in the past three years. The smartphone exports rose by 55 per cent to $ 24.14 billion in 2024-25 from $15.57 billion in 2023-24 and $10.96 billion in 2022-23. In the last fiscal, the top five nations where India registered the highest growth in smartphone exports were the US, the Netherlands, Italy, Japan, and Czech Republic. India's exports to the United States alone rose from $2.16 billion in 2022-23 to $5.57 billion in 2023-24 and $10.6 billion in 2024-25. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
10-07-2025
- Business
- Hans India
Shipping and waterways sector will play a key role in boosting exports: Minister
New Delhi: Shipping and waterways will play a vital role in enhancing India's exports as the country is headed to become the third largest economic power, Minister of State for Ports, Shipping and Waterways, Shantanu Thakur, said on Thursday. Addressing a conference on exports logistics organised by the Confederation of Indian Industry (CII) here, the minister emphasised that equal and balanced focus on development of each sector is crucial. Thakur highlighted that reduction of the turnaround time of ships in the transportation of goods is of paramount importance. 'As 70 per cent of trade happens through shipping, there is a need for vast development of the shipping industry, ' Thakur pointed out. He also said that the use of artificial intelligence is an imperative for deeper development of the shipping and logistics sector. The minister mentioned the need for improved communication to establish a robust connectivity infrastructure, spanning from the Northeast region to the Northwest part of India, encompassing both first mile and last-mile connections. Speaking at the conference, Rajesh Agrawal, Special Secretary, Department of Commerce, highlighted three important factors in India's logistics journey. First, the container revolution played an important role in enhancing the role of Global Value Chains (GVC). He further emphasised the significance of India's ongoing and past free trade agreement (FTA) negotiations in enhancing India's participation in GVCs, adding that identification of gaps in multimodal transportation and bringing all stakeholders together will bring down the logistics cost, driving exports and growth in India's economy. Secondly, Agrawal mentioned that there is a need for more air cargo space, port space, rail and road space, in addition to enhancing cold chain logistics in India's agriculture sector. He further highlighted that to achieve Net Zero by 2027, there is a need to see that the logistics journey that India embarks upon is sustainable, with minimum carbon footprint. Vijay Kumar, Chairman, Inland Waterways Authority, deliberated on India's transformative journey and the role of Inland Waterways in actualising India's ambitious goal of achieving $2 trillion in exports by 2030, and net zero emission target by 2070. 'If the cost of logistics has to be brought down to single digit, we have to meet the twin goals of economy and sustainability, then inland waterways transport is the solution,' he added. Kumar also discussed the crucial steps taken by the government to address major industry issues including water availability and draft variability, highlighting the importance of multimodal connectivity and cargo aggregation hubs to bring down first mile and last mile costs.
Time of India
27-04-2025
- Business
- Time of India
Government unveils Rs 23,000-crore electronics components manufacturing scheme to boost domestic production
AI-generated image NEW DELHI: The Government has released regulations for applications under the Rs 23,000-crore Electronics Components Manufacturing Scheme (ECMS), aimed at boosting domestic value addition in electronics production. Union Electronics and IT Minister Ashwini Vaishnaw revealed that firms with strong local design capabilities and 'six sigma' quality standards will be key evaluation factors. Companies lacking domestic design teams might be 'left out' of the 'phenomenal change' expected in India's electronics sector over the next five years, according to a report by The Economic Times. Applications for the six-year scheme will open on May 1 through an online portal. The Union Cabinet, chaired by the Prime Minister, had approved the ECMS earlier this month. The initiative seeks to attract substantial domestic and global investments, develop robust manufacturing capabilities, and integrate Indian companies into Global Value Chains (GVCs). S Krishnan, Secretary of the Electronics and IT Ministry, asserted that the scheme is timely, coinciding with geopolitical shifts that could redefine global value chains. It is expected to increase India's share in global electronics manufacturing from 3 per cent to 8 per cent over six years, according to him. The programme targets Rs 59,350 crore in investments, aims to create 91,600 direct jobs, and projects production worth Rs 4,56,500 crore. It offers a mix of turnover-linked and capital expenditure incentives, depending on component type, with employment generation tied to both incentive structures. ECMS covers sub-assemblies such as display and camera modules, core components like multilayer PCBs and lithium-ion cells, specific bare components including HDI and MSAP PCBs, as well as supply chain infrastructure and manufacturing equipment. Application windows differ: three months for sub-assemblies and bare components, and two years for supply chain and capital equipment categories. Atul Lall, vice chairman and managing director of Dixon Technologies, confirmed plans to invest significantly in at least four component categories under the scheme. Meanwhile, industry bodies highlighted the need for international collaborations and strong state partnerships to strengthen the electronics ecosystem. Additionally, Vaishnaw noted India's electronics production and export growth—both witnessing five- and sixfold increases respectively over the past decade—adding momentum to the ECMS. India's electronics production has surpassed Rs 11 lakh crore (approximately $129 billion) annually. The country is targeting $300 billion by 2026 and $500 billion by 2030-31 in domestic electronics production . Separately, the government announced Bengaluru-based Sarvam AI as the first startup selected to develop an indigenous foundational model under the IndiaAI Mission. Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), predicted that states would launch competitive initiatives to attract investments. He cited the mobile industry's current $62 billion production base, suggesting ECMS will further strengthen India's components and sub-assembly ecosystems. Ashok Chandak, president of SEMI India and the India Electronics and Semiconductor Association (IESA), described the scheme as critical for boosting manufacturing capabilities while complementing the India Semiconductor Mission. The ECMS outlines various investment thresholds by component type, offering turnover-linked incentives for investments between Rs 50 crore and Rs 500 crore, alongside additional capex incentives for selected components. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
