Handpicked updates about India’s business and the business of India
Contrary to social media rumourfire that MTV is shutting down, it’s very much alive and well in India. It is planning to pull the plug on 5 music channels in the UK (which is the end of an era in itself), but those changes wont affect India. It’s going to take a lot more than cost efficiency to take Roadies from us.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market closed on Oct 15th
The Indian stock market rebounded sharply on Wednesday, driven by positive global cues and growing expectations of a US Fed rate cut. The Sensex and Nifty 50 both closed higher, ending a two-day losing streak with healthy across-segment buying.
Technology & Semiconductor Industry
India’s $18 Billion Bet To Become A Chip Powerhouse
Image credits: BBC
A Global Race India Doesn’t Want To Lose: India is betting $18 billion to become a global semiconductor hub, aiming to develop design, fabrication, testing, and packaging capabilities domestically. The push gained urgency after the U.S. restricted AI chip exports to China in 2022, sparking a global race for semiconductor self-reliance. Currently, India consumes electronics at a massive scale but has minimal participation in the global supply chain. New Delhi’s Semiconductor Mission seeks to change that, with 10 approved projects worth 1.6 trillion rupees ($18.2 billion), including two fabs and multiple testing and packaging facilities.
LG And Samsung Signal Confidence: Global tech giants are betting on India’s talent. LG Electronics CEO William Cho called India a “best capability country,” illustrating a shift from cost arbitrage to engineering strength. LG plans to use Indian engineers for advanced semiconductors and AI-enabled features, while leveraging India as a strategic export hub. Samsung is taking immediate action, scaling up its Samsung Semiconductor India Research (SSIR) centre in Bengaluru. Engineers across SoC, memory, and foundry divisions are being hired to work on AI and high-performance computing chips. With local leadership in place, Samsung aims to position India as a global design powerhouse.
India’s Strength In Chip Design: Chip design is talent-intensive, and India already hosts major design centres. AMD recently inaugurated its largest global design facility in Bengaluru, employing 3,000 engineers. Government initiatives, including the Design Linked Incentive (DLI) and Chips to Startups (C2S), equip colleges with electronic design automation (EDA) tools, ensuring graduates are industry-ready. These moves show India’s growing role as a semiconductor design hub, complementing efforts to build local manufacturing capabilities.
Challenges Remain: Experts caution that India still faces structural hurdles. Stephen Ezell, innovation policy expert, notes fab investments depend on “500 discrete factors” including infrastructure, labor policies, taxes, and trade. Fabs require flood-free sites, reliable connectivity, and ultra-pure chemicals. Local IP creation is limited; most advanced chip designs remain overseas. Without robust IP laws and enforcement, India risks being confined to non-core design and testing roles.
Big Projects And The Road Ahead: India’s largest current fab is the Tata-Powerchip plant in Gujarat, producing ICs, microcontrollers, and high-performance logic for AI, automotive, and storage. Odisha’s Clas-SiC Wafer Fab will make compound semiconductors for EVs, defense, and solar inverters. The government now covers 50% of project costs for all fabs and testing units, creating a stronger incentive framework. Medium-sized companies are also entering chip testing and packaging (OSAT), promising a more complete ecosystem.
India’s Moment: India’s emergence as a semiconductor hub combines global confidence in talent, government support, and growing infrastructure. While the path to cutting-edge 2nm chips is long, the foundation is being laid.
Business India: Dhanda Hai Yeh!
Image credits: Reuters
Apple Lobbies India To Change Tax Law: Apple is urging Indian authorities to reconsider a tax law that it says is hampering the company’s expansion plans in the country. The tech giant seeks a regulatory environment more conducive to foreign investment and local operations. India is a critical market for Apple, both for sales and potential manufacturing partnerships.
India’s Trade Deficit Hits 11-Month High: India’s trade deficit widened to $32.15 billion in September, marking the highest level in nearly a year. Rising imports, especially of crude oil and electronics, outpaced export growth. Analysts say persistent trade imbalances could pressure the rupee and affect macroeconomic stability. The government is monitoring the situation while seeking to boost exports and reduce import dependency.
China Files WTO Complaint Against India: China has lodged a complaint with the World Trade Organization over India’s subsidies for electric vehicles and batteries. Beijing claims these incentives distort trade and urges New Delhi to correct the “wrongdoings.” India’s policies aim to strengthen its domestic EV and battery manufacturing sector. The case reflects rising global tensions over industrial subsidies and fair trade practices.
Hyundai Plans ₹45,000 crore Investment: Hyundai Motor India announced plans to invest ₹45,000 crore by 2030, targeting 26 new model launches. The investment aims to expand manufacturing capacity and accelerate the company’s EV portfolio in India. Hyundai sees the country as a strategic hub for growth and innovation. The plan underscores global automakers’ confidence in India’s automotive market potential.
Axis Bank Q2 Results: Profit Dips: Axis Bank reported a 26% decline in net profit for Q2, falling to Rs 5,090 crore and missing market expectations. The slowdown is attributed to higher provisioning and softer interest income growth. Analysts note that while asset quality remains stable, challenges persist in maintaining margins. The results reflect broader pressures on the banking sector amid rising costs and competition.
