‘India Needs to Work on Infra, Ecosystem to be a Semicon Hub’ (The Economic Times)
India must improve its ecosystem of land, water, and electricity supply, and enhance rail, road, and water connectivity to support the development of an electronics and semiconductor manufacturing ecosystem, as emphasized by Chu Tih Ju, Deputy Mayor of New Taipei City, Taiwan. The main challenges in India are the availability of litigation-free land and uninterrupted power and water supply, alongside the need for basic infrastructure and access to export markets for domestic companies. Taiwan, a major player in electronics and semiconductor manufacturing, saw bilateral trade with India reach $8.2 billion last year, with a 28% increase in the first quarter of 2024, underscoring the importance of adhering to local laws for companies operating in foreign markets.
Application window for white goods under PLI reopens (mint)
The Indian government has reopened the application window for the production-linked incentive (PLI) scheme for white goods, specifically air conditioners (ACs) and LED lights, from July 15 to October 12, due to increased industry interest and market growth. The PLI scheme, approved in April 2021 with an outlay of ₹6,238 crore for FY22 to FY29, aims to boost the manufacturing of key components in India, with 66 applicants already committed to investments totalling ₹76,962 crore. To enhance business liquidity and operational efficiency, the scheme will now process claims quarterly instead of annually, encouraging further investments from companies like Daikin, Voltas, LG, and Dixon across the complete value chain.
E-way bills dip in June but stay above 100 million mark (mint)
In June, over 100 million e-way bills were generated, indicating robust manufacturing activity, marking the fourth time this threshold has been crossed. This surge in e-way bills suggests strong GST collections for July, following a trend of high revenue with the Centre and states collecting ₹1.74 trillion in June. Supporting this economic buoyancy, the HSBC India manufacturing PMI rose to 58.3 in June, and Indian Railways' freight activity improved by 10% year-on-year, although auto sales remained sluggish due to heatwave conditions and delayed monsoons.
Govt to push for more RE connectivity at state level (Business Standard)
The Indian Power Ministry plans to encourage states to connect new renewable energy (RE) projects to state grids rather than the national grid to enhance state-level power transmission infrastructure and integrate RE capacities more effectively. The current inter-state transmission system (ISTS) waiver, which reduces costs for developers by exempting RE projects from national grid charges, may be reconsidered in the next financial year, potentially shifting focus to state grids where connection costs are significantly lower. This move aims to boost private investment in state power infrastructure and address transmission capacity constraints in regions like the West, which is facing a shortage of sub-stations and delayed waiver compensations.
