Latest news with #ProductionLinkedIncentive
Fashion Value Chain
6 hours ago
- Business
- Fashion Value Chain
Nobel Hygiene Secures ₹25 Cr PLI Grant for FY 2024–25
Nobel Hygiene, a leading Indian player in the hygiene products sector, has been awarded ₹25 crore under the Production Linked Incentive (PLI) scheme by the Ministry of Textiles for FY 2024–25. Out of more than 50 applicants in the diaper segment, Nobel Hygiene is one of only two companies selected—an acknowledgment of its strong commitment to boosting domestic manufacturing and furthering the Indian government's Atmanirbhar Bharat mission. This prestigious recognition underscores the company's strategic efforts to strengthen India's hygiene sector. It follows Nobel Hygiene's recent ₹180 crore investment in a new greenfield manufacturing facility. The state-of-the-art plant is designed to enhance production capabilities, integrate cutting-edge technologies, and support the company's growing presence across the country. The PLI grant will play a pivotal role in driving innovation, efficiency, and self-reliance in India's hygiene manufacturing ecosystem. The incentive allows Nobel Hygiene to scale operations and meet increasing domestic demand, especially in underserved markets where access to quality hygiene products remains a priority. In light of this milestone, the company is open to facilitating a conversation with Mr. Nikhil Datye, CFO, Nobel Hygiene, to delve deeper into this achievement. Key topics for discussion include: The strategic importance of the Ministry of Textiles' recognition How the PLI grant is accelerating product innovation within the hygiene sector The company's roadmap for scaling operations and aligning with national self-sufficiency goals With this support, Nobel Hygiene is positioned to lead a transformative shift in India's hygiene landscape while contributing meaningfully to the textile sector's modernization. The company's role in building capacity and leveraging local capabilities serves as a model for how public-private synergy can drive sustainable and inclusive industrial growth.
NDTV
a day ago
- Automotive
- NDTV
Why Are Maruti, Tata, Mahindra Making Fewer EVs?
India's electric vehicle (EV) dreams have long symbolised its aspirations for a cleaner, more self-reliant future. But today, those dreams risk stalling at the crossroads of geopolitics and supply chain fragility. With China's April 2025 export curbs on rare earth elements, a critical question looms: can India steer its EV revolution onto a resilient, independent path before it's too late? The India EV revolution, which was running in high gear until some time ago, has now been thrown into turmoil, with manufacturers slashing their EV production targets across the board. Maruti, Tata, Mahindra, the two-wheeler giants - none has been spared. For the average Indian hoping to buy an affordable EV, these disruptions could soon mean higher prices, longer wait times and dwindling options. And with this, India's ambitious goal of 30% EV penetration by 2030 now hangs in limbo. Importance of Rare Earth Elements REEs are a group of 17 metallic elements, including samarium, dysprosium, and neodymium, which are critical to modern technology. They power everything from EV motors and missile systems to smartphones and wind turbines. China has achieved near-total dominance in this sector, not just by mining these elements but by mastering the far more complex process of refining them. With an almost iron grip on global processing - controlling roughly 85% of the market - the latest curbs by the Red Dragon have restricted access to these elements, impacting not only the global defence sector but also commercial industries, such as clean energy and electric mobility. A House of Cards India's EV penetration has surged to 7.7% in 2024, a nearly fourfold jump from 1.75% in 2021. But this remarkable growth is marred by a heavy reliance on China. According to a CRISIL report, last year, India imported over 80% of its 540 tonnes of magnets, critical for manufacturing EV motors, from China. This dependency stems from the fact that domestic manufacturing has struggled to keep pace with sector demands, despite the government's Production Linked Incentive (PLI) push over recent years. Ironically, India holds the world's sixth-largest deposits of rare earth elements - about 6.9 million metric tonnes - but has almost no domestic magnet production. The Economic Survey 2024-25 warned that EV production requires six times more minerals than conventional vehicles, with supply chains dangerously concentrated in a handful of countries, especially China. This stark reality exposes a brutal truth: India's electrification ambitions have outpaced its supply chain resilience planning. To make matters worse, Mint reports that the embargo and subsequent import hurdles could increase costs by as much as 8%, a burden likely to be passed on to customers. For India's cost-sensitive market, especially in the two-wheeler segment, this poses an existential challenge. Supply Chain Disruption The Centre for Science and Environment's State of India's Environment 2025 report highlights that component localisation has lagged due to a weak manufacturing base. Experts agree that building a full ecosystem - from mining to magnet production - demands sustained policy support, technical capacity, and major investment. Without swift action, India remains vulnerable to external shocks and geopolitical risks. While many states have launched EV policies with strong demand incentives, few have addressed supply chain security. Most rely on the Centre, and no state mandates local sourcing of critical components like batteries or motors. The PM-EDRIVE scheme does include localisation criteria, but state policies generally focus on consumer subsidies over R&D. Maharashtra stands out as an exception. Its policy explicitly promotes supply chain resilience and circularity, allocating ₹15 crore toward R&D in sodium-ion batteries, magnet-free motors, and recycling technologies. However, these efforts are still in early stages, and their outcomes will take time to unfold. Overall, sub-national policies have yet to fully grapple with the risks posed by global supply chain disruptions. Reducing Dependency Private participation in critical mineral mining became possible only after the 2023 amendment to the Mines and Minerals Act. Until then, IREL (India) Ltd held a monopoly, with rare earths classified as atomic minerals under the Atomic Energy Act. Following the reform, the government auctioned 13 exploration blocks in March 2025. Since then, progress has begun. Vedanta's subsidiary, Hindustan Zinc, recently announced plans to mine and process neodymium, a key input for permanent magnets. Sona Comstar - India's largest importer of rare earth magnets from China and a major supplier to Tesla and Stellantis - has also declared its intention to localise production and reduce dependence on Chinese imports. However, the transition from exploration to actual production takes time. The lithium auction in Jammu & Kashmir illustrates this challenge: despite relaxed rules, both rounds failed due to limited geological data, small block sizes, and technical complexities. This gap between ambition and on-ground readiness remains a key hurdle. Still, the liberalisation of mining policy marks a crucial step toward reducing import dependence and building a resilient domestic rare earth supply chain. A Bloomberg report indicates the government may temporarily ease localisation norms to allow imports of fully-built motors. While this offers short-term relief, it does little to advance long-term atma-nirbharta. What's needed is a strategic, well-resourced response. First, KABIL's overseas mineral missions in Argentina, Australia, and Chile must be fast-tracked to shield India from future supply shocks. Second, a strong circular economy push is vital - scaling battery recycling can recover up to 90% of critical minerals like lithium and cobalt. Third, the Economic Survey 2024-25 calls for greater R&D investment in next-gen batteries like sodium-ion to further de-risk and secure supply chains, along with tech transfer agreements to share costs and diversify supply chains. Fewer EVs today, Resilience Tomorrow? The supply chain shock is already visible - Maruti has slashed production targets for its upcoming EV, an early warning sign. If rare earth shipments don't resume soon, Indian manufacturers may be forced to import fully built motors from China, raising costs by 5-10%. Ironically, this disruption may succeed where years of policy have fallen short: pushing India toward genuine automotive self-reliance. While diplomatic outreach to China is underway, it remains a short-term fix. Meanwhile, the Hon'ble Prime Minister's recent visit to Ghana set the tone with a high-stakes agreement on rare earth mineral mining - an important step toward long-term resilience. As RMI notes, India's success in renewable energy proves that self-sufficiency is achievable when backed by coherent, risk-aware policy. With global uncertainties mounting, India must accelerate efforts to localise its EV supply chain. The question isn't whether rollout will be slow - it will - but whether this crisis will finally drive the structural reforms needed to secure India's electric future.
India Gazette
a day ago
- Business
- India Gazette
India's trade deficit narrows sharply to USD 3.51 bn from USD 7.30 bn in June 2025 (YoY)
New Delhi [India] July 15 (ANI): India's overall trade deficit (merchandise and services) narrowed significantly to USD 3.51 billion in June 2025, down from USD 7.30 billion in June 2024, as exports outpaced imports on a year-on-year basis, government data showed on Tuesday. The decline in the trade deficit reflects stronger export performance, aided by resilient demand in key global markets and robust service sector growth. The data suggests that overall exports (merchandise and services) rose to USD 67.98 billion in June 2025, compared to USD 63.83 billion in the same month last year, with a jump of nearly 6.5 per cent. Meanwhile, overall imports also saw a marginal rise, reaching USD 71.50 billion in June 2025 compared to USD 71.14 billion in same period of the last year, indicating stable domestic demand and softening global commodity prices. The improved trade balance is a positive sign for India's current account position and broader economic fundamentals. The country's trade deficit in May had also narrowed to USD 6.62 billion from USD 9.35 billion same month last year. In May 2025, India's overall exports, merchandise and services combined, were reported at USD 71.12 billion, marking a 2.77 per cent rise on a yearly basis. The total exports in May 2024 were pegged at USD 69.20 billion. Among various steps the government took to increase exports include the Production Linked Incentive (PLI) scheme in 14 sectors, including electronic goods, telecom, EVs battery to name a few. The production linked incentive (PLI) scheme of the government has helped India's export growth and make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. The government has set a target of USD 1 trillion of exports in the current financial year 2025-26. The free trade agreements (FTA) signed and under negotiations with various countries will boost exports. The most recent FTA was signed with the United Kingdom and the UAE. Commerce and Industry Secretary Sunil Barthwal had on Monday said at an Industry summit highlighted the importance of FTAs, Barthwal noted that the 'India-UK' FTA has a special chapter on Innovation, thereby strengthening innovation corridors between partner countries. He further added that FTAs ensure regulatory practices and institutional mechanisms between two sets of partners that can be harmonized and sustained. (ANI)
Time of India
a day ago
- Business
- Time of India
India's trade deficit narrows to $18.78 billion in June
India's trade deficit for June 2025 narrowed to $18.78 billion, compared to $21.88 billion in May, government data showed Tuesday. Economists had expected the June trade deficit to be at $22.24 billion, according to a Reuters poll, compared to $21.88 billion in the previous month. The data comes amid ongoing trade talks with the US and other global partners. Despite Trump's tariff threats, India's exports to the U.S. in April–May rose to $17.25 billion from $14.17 billion last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologist Reveals: The Simple Morning Habit for a Flatter Belly After 50! Lulutox Undo The June data comes as the Centre continues to push structural reforms and global trade partnerships. The government has set a $1 trillion export target for FY26, after India's total exports touched an all-time high of $824.9 billion in FY25, marking a 6.01% increase over $778.1 billion in FY24. To support exports, schemes like the Production Linked Incentive (PLI) covering 14 sectors, from electronics to EV batteries, are being actively expanded. These efforts aim to reduce import dependency, boost domestic capacity, and improve India's position in global supply chains. Live Events India is also expanding its Free Trade Agreement (FTA) network. Recent FTAs with the UK and UAE are expected to help exporters, with negotiations also underway with the United States. Commerce Secretary Sunil Barthwal recently said FTAs were becoming 'a very critical enabler of the GCC ecosystem.' 'Manufacturing comparative advantage is no longer the benchmark for trade among nations,' Barthwal said at the CII Summit on Monday. He noted that India's innovation corridors would be strengthened through FTAs like the India–UK pact, which includes a dedicated chapter on innovation. More details on sector-wise performance and country-specific trade balances for June are expected later today from the Commerce Ministry.
India Gazette
a day ago
- Business
- India Gazette
Impact of geopolitical issues like Israel-Iran conflict will be reflected in June trade data
New Delhi [India], July 15 (ANI): India's export data for the month of June 2025 will be released later in the day. Amid Iran-Israel hostilities that ended in a ceasefire, uncertainties on US tariffs and a relative spike in global crude prices are likely to have an impact on June trade data. In May 2025, India's overall exports, merchandise and services combined, were reported at USD 71.12 billion, marking a 2.77 per cent rise on a yearly basis. The total exports in May 2024 were pegged at USD 69.20 billion. Exports of merchandise goods declined from USD 39.59 billion to USD 38.73 billion, but services exports rose from USD 29.61 billion to USD 32.39 billion in May 2025. However, India imported goods and services worth USD 77.75 billion in May 2025, down from USD 78.55 billion in the same month last year. The trade deficit in May narrowed to USD 6.62 billion from USD 9.35 billion same month last year. So far in FY2025-26, April-May, India's total exports stood at around USD 142.43 billion, up 5.75 per cent year-on-year. The country's imports also increased year-on-year in April-May, up by 6.52 per cent. Overall imports, both merchandise and services combined, during April-May increased from USD 149.81 billion to USD 157.57 billion. India's merchandise imports stood at USD 60.61 billion in May 2025, according to official data. As of approximately 8:45 am on July 15, a Probo event contract tracking June's merchandise imports figures--featuring over 2,300 active traders--assigns a 40 per cent probability that merchandise imports for June 2025 will be USD 60 billion or more. India's total exports have touched an all-time high of USD 824.9 billion in the recently concluded financial year 2024-25. This marks a yearly growth of 6.01 per cent over USD 778.1 billion exports in 2023-24, setting a new annual milestone. Among various steps the government took to increase exports include the Production Linked Incentive (PLI) scheme in 14 sectors, including electronic goods, telecom, EVs battery to name a few. The PLI scheme was launched to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. These seemed to have reaped dividends for rising exports. The government has set a target of USD 1 trillion of exports in the current financial year 2025-26. The government is signing free trade agreements (FTA) with various countries to boost exports. The most recent FTA was signed with the United Kingdom and the UAE. Speaking at the CII Summit on Monday, Commerce and Industry Secretary Sunil Barthwal said that government's priority is enabling global capability centres (GCC), and FTAs will play a major role in that. 'Manufacturing comparative advantage is no longer the benchmark for trade among nations. With the service sector expanding its niche and GCC's becoming a hub for providing services to manufacturing companies, FTAs have become a very critical enabler of the GCC ecosystem'. Reiterating the importance of FTAs, Barthwal noted that the 'India-UK' FTA has a special chapter on Innovation, thereby strengthening innovation corridors between partner countries. He further added that FTAs ensure regulatory practices and institutional mechanisms between two sets of partners that can be harmonized and sustained. (ANI)
