Daily News - Tuesday, 23 July 2024
‘China FDI can boost India’s exports, value addition’ (mint)
India's latest Economic Survey suggests leveraging China's foreign direct investments (FDI) to boost exports and domestic value addition, particularly in electronics, by hosting Chinese component manufacturers. This strategy, known as the China-plus-one approach, is aimed at benefiting from global shifts in sourcing away from China, despite the geopolitical complexities between the two nations. While experts agree on the potential advantages, they emphasize the need for conducive domestic business conditions and strategic policy alignment to effectively reduce import dependency on China and enhance the manufacturing ecosystem in India.
Clean energy will need investments of ₹31 trn by 2030 (Financial Express)
India's energy demand is projected to grow 2-2.5 times by 2047, prompting significant investments in the renewable energy sector, estimated at ₹30.5 trillion between 2024 and 2030. While the country's energy mix remains heavily reliant on fossil fuels, with 84% from coal, oil, and natural gas in 2022-23, there has been a notable shift towards renewables, now constituting 45.4% of power capacity as of May 2024. Despite these advancements, the government acknowledges challenges such as intermittency and grid stability, highlighting the continued importance of coal and thermal power to support the expanding renewable energy infrastructure.
While GCC Marched Ahead, IT Services Exports Lost Ground (The Economic Times)
The Economic Survey reveals that the share of IT in India's services exports fell from 50% in FY21 to 48% in FY24, with "other business services" rising to 26%. The growth in Global Capability Centres (GCCs), especially from MNCs in the Asia-Pacific region, has strengthened India's services exports, contributing significantly to key industries and expected to generate $121 billion by 2030. Despite the rise of GCCs, the IT sector's hiring has slowed considerably in FY24, with limited prospects for significant improvement in the near term.
Tech Startups Booming, Hit 31k Mark (The Economic Times)
India experienced a surge in technology startups, reaching about 31,000 in 2023, driven by pandemic-induced demand for tech solutions, with top sectors including edtech, enterprise tech, and BFSI. Government-recognized startups, totaling over 117,000 by December 2023, have created more than 1.24 million direct jobs, thanks to government support and incentives, along with industry-academia partnerships. Additionally, the e-commerce sector is expected to grow to $350 billion by 2030, propelled by technological advancements, new business models, and government initiatives, showcasing significant momentum and benefits over traditional markets.
India among World’s Fastest-Growing 5G Networks (The Economic Times)
India's rapid 5G network expansion has significantly improved its global mobile broadband speed ranking, rising from 118th to 15th by March 2024, as noted in the Economic Survey 2023-24. To support telecom R&D, the government has allocated 5% of the Universal Services Obligation Fund for this purpose, facilitating growth in digital services. The survey also highlights an increase in teledensity to 85.7%, a rise in wireless telephone connections to 116.5 crore, and substantial growth in internet subscribers from 25.1 crore in 2014 to 95.4 crore in 2024, underscoring India's focus on integrating its value chain with Western markets in advanced technologies.
