India & South Asia News Asia | Tech Wire Asia | Latest Updates & Trends https://techwireasia.com/category/asia-pacific-focus/india-and-south-asia/ Where technology and business intersect Wed, 10 Sep 2025 15:27:55 +0000 en-GB hourly 1 https://wordpress.org/?v=6.8.2 https://techwireasia.com/wp-content/uploads/2025/02/cropped-TECHWIREASIA_LOGO_CMYK_GREY-scaled1-32x32.png India & South Asia News Asia | Tech Wire Asia | Latest Updates & Trends https://techwireasia.com/category/asia-pacific-focus/india-and-south-asia/ 32 32 India’s semiconductor ambitions: Big plans, old tech, real challenges https://techwireasia.com/2025/09/semiconductor-india-commercial-production-2025/ Wed, 03 Sep 2025 10:00:06 +0000 https://techwireasia.com/?p=243466 India’s push into global semiconductor manufacturing reaches a commercial milestone. Country prepares to begin chip production by the end of 2025. $18 bn investment in 10 projects could reshape supply chains, despite challenges. “When the chips are down, you can bet on India,” Prime Minister Narendra Modi declared as he received the country’s first indigenous […]

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  • India’s push into global semiconductor manufacturing reaches a commercial milestone.
  • Country prepares to begin chip production by the end of 2025.
  • $18 bn investment in 10 projects could reshape supply chains, despite challenges.
  • “When the chips are down, you can bet on India,” Prime Minister Narendra Modi declared as he received the country’s first indigenous 32-bit microprocessor this week. The Vikram processor, developed by ISRO’s Semiconductor Lab, marks India’s entry into domestic chip production – a journey that began just four years ago and faces its first commercial test by year-end.

    Modi announced Tuesday that commercial chip manufacturing will begin by the end of 2025, transitioning India from a semiconductor importer to a producer. The statement came as industry leaders gathered for Semicon India 2025, where the scale of the country’s ambitions became clear.

    The numbers behind the push

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    Electronic & Information Tech Minister Ashwini Vaishnaw presented the processor Vikram and test chips from several projects to PM Modi.

    India has committed US$18 billion in 10 semiconductor projects, representing one of the largest industrial investments in the country’s recent history. The government allocated ₹76,000 crore (US$9.1 billion) through the Production Linked Incentive scheme, with ₹65,000 crore already committed to approved projects, according to the Press Information Bureau.

    The market trajectory shows rapid growth: from US$38 billion in 2023 to an estimated $45 – 50 billion in 2024 – 25. The government targets a projected US$100 – 110 billion by 2030, though achieving this would require sustaining growth rates that few countries have managed in semiconductor manufacturing.

    The financial scale reflects both opportunity and risk. Semiconductor manufacturing requires sustained capital investment over many years, with no guarantee of commercial success. Historical attempts by countries, including Malaysia, Thailand, and others, have demonstrated the difficulty of building competitive chip industries from scratch.

    From test chips to commercial reality

    The CG Power facility in Sanand, Gujarat, launched in August 2024, represents India’s first operational semiconductor assembly and test capability. The facility currently handles 0.5 million units per day, with plans to scale to 14.5 million units daily. CG-Semi expects to produce the first commercial “Made in India” chips from the facility.

    The Vikram processor demonstrates existing capabilities but also limitations. Fabricated using 180-nanometer CMOS technology, it functions in space applications but represents older technology compared to the 3-nanometer processes that define current leading-edge manufacturing.

    Major international partnerships include Micron Technology’s ₹22,516 crore investment in Gujarat and Tata Electronics’₹91,000 crore partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp. The partnerships provide technology transfer and expertise, though they also highlight India’s current dependence on foreign knowledge and equipment.

    Technology gap: 25-year-old manufacturing process

    The Vikram processor demonstrates both capabilities and limitations of India’s current semiconductor manufacturing. Fabricated using 180-nanometer CMOS technology – state-of-the-art in 2000 but now 25 years behind leading-edge processes – it functions reliably in space applications but highlights the technological gap India faces.

    For context, today’s advanced smartphones use 3-nanometer chips, while even mid-range consumer electronics typically employ 7-14 nanometer processes. The 180nm technology, while proven and suitable for specific applications, represents a significant technological lag compared to current commercial standards.

    Major international partnerships include Micron Technology’s ₹22,516 crore investment in Gujarat and Tata Electronics’ ₹91,000 crore partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp. The partnerships provide technology transfer and expertise, though they also highlight India’s current dependence on foreign knowledge and equipment.

    Design capabilities and talent

    India contributes approximately 20% of global semiconductor design, according to industry estimates. The Design Linked Incentive scheme has approved 23 chip design projects, supporting both startups and established companies.

    Two 3-nanometer design facilities in Noida and Bengaluru position India among countries with advanced design capabilities. However, design capabilities differ significantly from manufacturing expertise. While India has demonstrated strong software and design skills, semiconductor manufacturing requires different competencies, including process engineering, yield optimisation, and supply chain management.

    The government also reports training over 60,000 students in semiconductor-related skills, though industry sources suggest the sector will need significantly more specialised talent to achieve stated production goals.

    Geopolitical context

    India’s semiconductor push occurs amid global supply chain diversification efforts. Taiwan produces over 60% of global semiconductors and 90% of advanced chips, creating concentration risks that governments worldwide seek to address.

    Japan’s commitment to invest 10 trillion yen (US$68 billion) in India, including semiconductor cooperation, reflects international interest in alternative manufacturing locations. However, these partnerships often come with technology transfer limitations and competitive constraints.

    The US CHIPS Act, European Chips Act, and similar initiatives worldwide demonstrate how governments are subsidising domestic semiconductor capabilities. This creates both opportunities and challenges for India, as it competes for investment and talent in an increasingly crowded field.

    Technical and economic challenges

    The semiconductor industry presents formidable barriers to entry. Advanced chip manufacturing requires:

    • Capital investments of US$10-20 billion per leading-edge facility
    • Highly specialised equipment from a limited number of suppliers
    • Process expertise that typically takes years to develop
    • Consistent yields and quality that meet global standards

    India’s current projects focus on assembly, testing, and older-generation manufacturing rather than cutting-edge production. While this provides a foundation, competing with established manufacturers in Taiwan, South Korea, and China requires capabilities that India is still developing.

    Supply chain complexity adds another layer of difficulty. Semiconductor manufacturing depends on hundreds of specialised materials, chemicals, and components. Building reliable domestic suppliers for these inputs requires time and sustained investment.

    Market realities

    Industry observers note the gap between policy announcements and commercial execution. Producing test chips differs significantly from achieving commercial-scale manufacturing with competitive costs and yields.

    Delta Electronics India’s Sanjeev Srivastava stated that “the semiconductor industry has started in India over the last 1-2 years,” acknowledging the sector’s early stage. Emerson’s Shitendra Bhattacharya noted that while semiconductors produced in India will target global markets, domestic demand is also rising, providing a potential foundation for the industry.

    The economic multiplier effects remain theoretical until commercial production begins. Each semiconductor job typically supports additional positions in related industries, but these benefits depend on achieving sustainable production volumes.

    Execution risks

    Several factors could impact India’s semiconductor ambitions:

    Technology access: Advanced semiconductor manufacturing depends on equipment from companies including ASML and Applied Materials. Export controls and technology restrictions could limit access to the latest capabilities.

    Talent development: While India has engineering capabilities, semiconductor manufacturing requires specialised skills that differ from software development or design work.

    Global competition: Established manufacturers benefit from decades of established supply chains, talent, and have gained economies of scale that new entrants find difficult to match.

    Capital requirements: Semiconductor technology evolves, requiring continuous investment. The industry’s capital intensity has, historically, challenged even well-funded government initiatives.

    Assessment

    India’s semiconductor initiative shows early progress, with operational facilities and international partnerships providing a foundation for expansion. The country’s design capabilities and engineering talent offer advantages, while government financial support addresses some traditional barriers.

    However, the transition from current capabilities to competitive semiconductor manufacturing remains unproven. The industry’s technical complexity, capital requirements, and competitive dynamics present challenges that policy support alone cannot address.

    The next 12-18 months will provide crucial evidence of India’s execution capabilities as commercial production begins and facilities scale operations. Success will depend on factors including yield rates, production costs, and quality standards that meet global market requirements.

    Modi’s declaration that “when the chips are down, you can bet on India” will face its first real test as the country attempts to transform semiconductor ambitions into commercial reality. The outcome will influence not only India’s technology sector but global supply chain dynamics in one of the world’s most strategic industries.

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    OpenAI weighs building one of India’s largest AI data centres https://techwireasia.com/2025/09/openai-weighs-building-one-of-indias-largest-ai-data-centres/ Tue, 02 Sep 2025 09:00:47 +0000 https://techwireasia.com/?p=243439 OpenAI considers a 1-gigawatt AI data centre in India, part of the Stargate programme. Project would extend AI infrastructure beyond the US. OpenAI is considering a plan to set up a massive new data centre in India, a project that could become one of its largest investments in Asia under the US government’s Stargate initiative. […]

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  • OpenAI considers a 1-gigawatt AI data centre in India, part of the Stargate programme.
  • Project would extend AI infrastructure beyond the US.
  • OpenAI is considering a plan to set up a massive new data centre in India, a project that could become one of its largest investments in Asia under the US government’s Stargate initiative.

    As reported by Bloomberg, people familiar with the matter say the ChatGPT-maker is in talks with local partners about building a facility with at least a gigawatt of capacity. If completed, it would rank among the biggest in India, where Microsoft, Google, and billionaire Mukesh Ambani have already poured billions into similar sites to support cloud and AI growth.

    The exact location has not been finalised, and the timeline remains uncertain. Some sources suggest CEO Sam Altman may announce the project during an upcoming visit to India, though those plans are still shifting.

    OpenAI’s possible expansion in India comes as trade friction between Washington and New Delhi deepens. US President Donald Trump recently imposed a 50% tariff on Indian goods, saying it was a response to India’s trade barriers and purchases of Russian oil. The move disrupted years of US diplomacy aimed at strengthening ties with the South Asian nation. OpenAI declined to comment on whether its India plans might be affected by these tensions.

    Building AI infrastructure worldwide

    The company has embarked on an aggressive push to expand its infrastructure both in the US and overseas. The signature $500 billion Stargate project in the US is being developed with backing from SoftBank and Oracle. OpenAI recently raised its US capacity commitment by 4.5 gigawatts – a figure that rivals the energy demand of several million households. Trump has publicly praised the project, framing it as a win for US technology.

    Beyond its home market, OpenAI has also launched “OpenAI for Countries,” a global programme aimed at building AI infrastructure alongside governments that share what the US terms its own ‘democratic values.’ OpenAI has pitched the plan as a way for the US and its partners to guide AI development in a way that balances China’s growing influence.

    More than 30 countries have expressed interest in joining, with OpenAI pursuing about 10 partnerships to date. Confirmed projects include a facility in Norway that could grow to provide 520 megawatts capacity, and a five gigawatt complex in Abu Dhabi. In the latter case, OpenAI will use about 1 gigawatt of computing power itself, leaving the rest available for other customers.

    Security questions abroad

    The Abu Dhabi venture has triggered debate in Washington. Some officials argue such projects are necessary to counter China’s global AI ambitions, while others worry about security risks tied to shipping thousands of Nvidia chips to countries with historic links to Beijing.

    Since 2023, the US has required approval for any AI chip exports to the UAE. India, however, is not subject to those restrictions. The Trump administration dropped a plan recently that would have expanded AI chip export controls worldwide, leaving India in a stronger position to attract high-performance computing investments.

    Why India is key for OpenAI’s AI strategy

    For OpenAI, India offers more than just market size. A large-scale data centre in the country could allow it to train and deploy models locally, easing concerns about sending users’ data abroad. It would also align with New Delhi’s $1.2 billion IndiaAI Mission, which aims to develop large and small language models tailored to Indian languages and contexts. OpenAI has already pledged support for the initiative.

    India is also OpenAI’s second-largest market by users. To strengthen its presence, the company plans to open an office in New Delhi, expand its hiring, and has launched a $5 monthly subscription plan designed for local customers. The moves suggest India is becoming central to OpenAI’s AI strategy.

    If the data centre plan goes ahead, it would mark one of the company’s most ambitious steps yet in its global buildout – and a sign of how AI is becoming deeply tied to trade policy, energy infrastructure, and geopolitics.

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    Beyond the hype: Can Apple manufacturing in India replace China supremacy? https://techwireasia.com/2025/08/apple-manufacturing-india-china-analysis-2025/ Thu, 21 Aug 2025 16:18:36 +0000 https://techwireasia.com/?p=243258 Apple’s manufacturing expansion in India represents a strategic supply chain supplement. Record $22 billion iPhone production in 2025 India’s challenges limitations prevent it replacing China’s ecosystem, positioning it as crucial but complementary. Apple manufacturing in India has reached unprecedented heights, but the narrative of India becoming “the next China” oversimplifies a far more nuanced strategic […]

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  • Apple’s manufacturing expansion in India represents a strategic supply chain supplement.
  • Record $22 billion iPhone production in 2025
  • India’s challenges limitations prevent it replacing China’s ecosystem, positioning it as crucial but complementary.
  • Apple manufacturing in India has reached unprecedented heights, but the narrative of India becoming “the next China” oversimplifies a far more nuanced strategic reality. Apple assembled US$22 billion worth of iPhones in India in the 12 months ended March, increasing production by nearly 60% over the previous year, marking a pivotal moment in global supply chain dynamics.

    The transformation is remarkable by any measure. In the first half of 2025, iPhone production in India rose by 53% compared to the same timeframe in 2024, reaching nearly 23.9 million units. Exports from India surged as well, totalling US$22.56 billion, a substantial increase from US$14.71 billion the previous year.

    For the first time in history, India overtook China to become the top exporter of smartphones to the US, with smartphones assembled in India accounting for 44% of US imports of those devices in the second quarter.

    The geopolitical catalyst behind the shift

    Apple’s accelerated pivot stems from mounting geopolitical pressures and market realities in China. Apple’s smartphone shipments in China fell 17% year-over-year, dropping from 51.8 million units in 2023 to 42.9 million in 2024.

    The company’s Chinese market share has contracted dramatically, falling to 15% in China, behind Huawei’s 16% and top-ranking Vivo’s 17%. The decline isn’t merely cyclical. Local manufacturers have emerged as the primary beneficiaries, with government support through nationwide smartphone subsidy policies providing additional momentum for domestic brands.

    Notably, Apple’s premium-priced iPhones were reportedly ineligible under the new subsidy scheme. The resurgence of Huawei, previously hampered by US sanctions, has particularly impacted Apple’s premium market position.

    Patrick McGee, author of “Apple in China: The Capture of the World’s Greatest Company,” provides context to this shift. McGee argues that Apple is still far from withdrawing from China, having invested billions of dollars in talent and equipment in China, with the country’s authoritarian government now having more influence over Apple’s fate than any other country. His analysis reveals a fundamental dependency that extends beyond simple manufacturing.

    India’s manufacturing momentum and limitations

    India’s rise as an Apple manufacturing hub has been swift but faces inherent constraints. Apple and its suppliers are aiming for a significant shift in global iPhone production, with plans to assemble 32% of global output and 26% of its value in India by 2026-27. The ambitious target could see India’s iPhone production value rise beyond US$34 billion.

    However, the reality on the ground reveals some challenges. India’s manufacturing ecosystem is less mature than China’s, with supply chain inefficiencies and a less experienced workforce combining to slow scalability. Indian factories still face many problems, including low iPhone yield rates (only about 50%) and hygiene issues.

    Manufacturing executives acknowledge the limitations, and the infrastructure gap remains substantial. While iPhone assembly lines in China work on two 12-hour shifts, Indian labour laws force Apple supply chain partners to have three eight-hour shifts, requiring them to employ more workers.

    Quality control presents another hurdle, with Apple having to reject almost half the production out of one partner in India as it failed to meet standards.

    The supplement strategy: Why complete replacement isn’t feasible

    The evidence suggests India serves as a strategic supplement rather than a wholesale replacement for China. While Apple has been able to build iPhones in India, it’s only a tiny percentage of its needs; it’s only final assembly processes for now, and it will take years to reach any significance in numbers. Surprisingly, many of Apple’s factories in India are Chinese subsidiaries that followed Apple to the continent.

    Apple’s dependency on China extends beyond final assembly. Ten years ago, Apple relied on China primarily for final assembly, while today, Apple not only assembles devices in China, but it also sources many components from the country. This deep integration means that even Indian-assembled iPhones rely heavily on Chinese components and expertise.

    The scale disparity is telling. India could reach about 15%-20% of overall iPhone production by the end of 2025, while China still accounts for the majority of Apple iPhone production. Even Apple’s most ambitious projections suggest India will handle approximately 25% of global iPhone production by 2027 – significant, but hardly a complete replacement.

    Market dynamics and strategic positioning

    Apple’s India strategy represents sophisticated risk management rather than abandoning China. As of late 2024, 15% of iPhones are now produced in India, up from just 5% two years prior. Its measured approach reflects practical constraints and strategic thinking.

    The geopolitical environment continues to shape decisions. President Donald Trump laid out US “reciprocal tariff” rates on more than 180 countries, with China facing a 34% tariff and India pegged at 26%. However, the tariff differentials don’t eliminate the fundamental challenges of replicating China’s manufacturing ecosystem elsewhere.

    Apple’s approach mirrors broader industry trends. Samsung Electronics and Motorola have also been striving to move assembly for US-bound smartphones to India, though their shift has been significantly slower and is limited in scale compared with Apple, indicating systemic challenges in scaling alternative manufacturing hubs.

    The path forward: Coexistence, not replacement

    The most realistic scenario involves sustained coexistence rather than replacement. The end goal for Apple is to have about half of iPhone production in India and half in China, according to industry analysis. A balance recognises the strategic necessity of diversification and the practical impossibility of complete disengagement from China.

    Apple’s investment trajectory supports this interpretation. Apple announced a US$500 billion investment in US facilities and is establishing new production lines in Vietnam for AirPods, Apple Watch, and MacBook parts: a multi-hub strategy rather than a simple China-to-India migration.

    The company’s approach to component sourcing reinforces this complexity. Assembly is the final stage of iPhone production, with hundreds of components sourced from China. As final assembly shifts geographically, the underlying supply chain remains integrated with Chinese manufacturers.

    Conclusion: Redefining the narrative

    Apple’s manufacturing shift to India represents neither the wholesale replacement of China nor a simple geographical arbitrage. Instead, it reflects a sophisticated strategy of supply chain resilience, market access optimisation, and geopolitical risk management.

    The success of Apple’s diversification strategy shouldn’t be measured by India’s ability to completely replace China, but rather by its capacity to provide strategic alternatives, serve specific market demands, and contribute to overall supply chain resilience. In this context, India’s emergence as an Apple manufacturing hub represents a strategic success.

    The India-China dynamic in Apple’s supply chain will likely remain complementary rather than competitive, with each region serving distinct strategic purposes in the company’s broader manufacturing ecosystem.

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    Apple’s $900m tariff hit accelerates India iPhone production shift https://techwireasia.com/2025/05/apples-900m-tariff-hit-accelerates-india-iphone-production-shift/ Mon, 05 May 2025 09:00:56 +0000 https://techwireasia.com/?p=242372 Apple expects a $900 million tariff hit this quarter as it shifts US iPhone production from China to India amid trade tensions  Tim Cook says the majority of US-bound iPhones will have India as the country of origin, with Vietnam producing iPads, Macs and other devices Apple’s recent confirmation of a $900 million tariff impact […]

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  • Apple expects a $900 million tariff hit this quarter as it shifts US iPhone production from China to India amid trade tensions 
  • Tim Cook says the majority of US-bound iPhones will have India as the country of origin, with Vietnam producing iPads, Macs and other devices
  • Apple’s recent confirmation of a $900 million tariff impact this quarter underscores the ongoing challenges in global technology supply chains amid shifting trade policies. The tech giant reported first-quarter profits above expectations, but warned that US tariffs could cost the company and disrupt its supply chain. This financial hit comes as Apple diversifies its manufacturing base away from China.

    During Apple’s recent earnings call, CEO Tim Cook outlined the company’s approach to managing these tariff pressures. Cook stated that while the tariff impact was “limited” at the start of this year, the company expects US tariffs to cost $900 million in the current quarter. He emphasised the difficulty in making precise predictions due to policy uncertainties.

    “We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions before the end of the quarter,” Cook said. “Assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs.”

    Supply chain realignment

    The Cupertino-based tech giant is actively reconfiguring its manufacturing footprint, with India gaining prominence. Cook said he expected “a majority of iPhones sold in the US will have India as their country of origin,” adding that Apple’s products were exempt from Trump’s most severe “reciprocal” tariffs, for now.

    This manufacturing shift represents a significant change for Apple, which has traditionally relied heavily on China. According to reports, Apple already manufactures one in five of its iPhones in India, generating US$22 billion in revenue during the 2024-25 financial year alone. The company expects to import most US-bound iPhones from India by the end of next year.

    Analysts note that short-term uncertainties remain. As CNBC reported, Cook was reluctant to make predictions beyond June: “I don’t want to predict the future because I’m not sure what will happen with tariffs,” he said, adding, “it’s very difficult to predict beyond June.”

    Multi-country production strategy

    Vietnam has also emerged as a key production hub in Apple’s diversification strategy. Cook said Vietnam would be the country of origin for almost all iPad, Mac, Apple Watch, and AirPod products sold in the US. Meanwhile, China will continue to be where most Apple products are made for sale outside the US.

    While this approach helps mitigate immediate tariff risks, challenges remain. Both Vietnam and India could potentially face higher tariffs on imported goods by July. Trump previously targeted both countries under his “reciprocal tariffs” announced in April, though these were subsequently paused for 90 days.

    Financial performance and market response

    Apple’s revenue of US$95.4 billion in the recently ended quarter was driven by iPhone sales, with the company taking in US$17 billion in the China market. Profit for the quarter was US$24.8 billion. However, the market reaction was mixed.

    Apple shares slipped more than 3% in after-market trading, highlighting investor concerns about the company’s ability to navigate ongoing tariff uncertainties—despite financial results that exceeded Wall Street expectations.

    A ‘Make in India’ opportunity?

    The current trade environment presents potential opportunities for India’s manufacturing sector. “Apple proactively built up inventory ahead of anticipated tariff policies,” said Canalys research manager Le Xuan Chiew. “With ongoing fluctuations in reciprocal tariff policies, Apple is likely to further shift US-bound production to India to reduce exposure to future risks.”

    This shift aligns with India’s broader manufacturing ambitions, though significant hurdles remain. According to Emarketer analyst Jacob Bourne, Apple’s plan to shift manufacturing to India “raises pressing questions about execution timeline, capacity limitations, and potentially unavoidable cost increases that will shrink margins, be passed to consumers, or have a mix of consequences.”

    Vinod Sharma, chairman of the Confederation of Indian Industry’s Committee on Electronics Manufacturing, acknowledged the opportunity but cautioned: “We certainly have a clear advantage. But it would be foolish to think that this opportunity alone will sail us through.” He stressed that policy shifts would be needed to realise the potential gains.

    Ongoing challenges

    Despite progress in diversifying its manufacturing base, Apple faces significant challenges. A production-linked incentive program introduced in India in 2020, with an outlay of US$23 billion, aimed to raise manufacturing’s share of India’s gross domestic product to 25% by 2025. As of March, the sector’s contribution was 14.3%.

    “We have a complex supply chain, there’s always risk in the supply chain,” Cook told analysts. What we learned some time ago was that having everything in one location had too much risk with it.”

    As trade tensions evolve, Apple’s strategic pivot represents both a significant operational challenge and a test of the company’s supply chain expertise. For India, this shift offers an opportunity to increase its role in global electronics manufacturing networks—but success will depend on addressing persistent infrastructure and policy limitations that have historically constrained its manufacturing competitiveness.

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    Could Pakistan SAF technology transform its agricultural waste crisis? https://techwireasia.com/2025/04/could-pakistan-saf-technology-transform-its-agricultural-waste-crisis/ Mon, 14 Apr 2025 13:39:32 +0000 https://techwireasia.com/?p=241726 Pakistan SAF technology initiative to convert agricultural waste into sustainable aviation fuel. $121 million Sheikhupura facility Asia-Pacific’s first private-sector SAF project. Promises 300 jobs and 20,000 indirect opportunities. Pakistan SAF technology developments are positioning the agricultural-rich nation as a potential dark horse in Asia’s race toward aviation decarbonisation. As Asian airlines face mounting pressure to […]

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  • Pakistan SAF technology initiative to convert agricultural waste into sustainable aviation fuel.
  • $121 million Sheikhupura facility Asia-Pacific’s first private-sector SAF project.
  • Promises 300 jobs and 20,000 indirect opportunities.
  • Pakistan SAF technology developments are positioning the agricultural-rich nation as a potential dark horse in Asia’s race toward aviation decarbonisation. As Asian airlines face mounting pressure to reduce emissions amid global climate imperatives, Pakistan’s unique approach of converting agricultural waste into sustainable aviation fuel (SAF) could offer a regional model worth examining.

    Converting an environmental problem into economic opportunity

    The smog that blankets major Pakistani and neighbouring Indian cities each harvest season has become an annual crisis, driven largely by the burning of agricultural residue. The practice, particularly prevalent in Punjab province, releases particulate matter that compromises air quality across borders.

    However, this challenge presents a technological opportunity that Pakistan’s emerging SAF sector aims to capitalise on. “Crop residues burned during both winter and summer in Pakistan represent an underutilised resource with immense potential for SAF production,” noted experts in an April 2025 report by The Express Tribune, highlighting a practical technological solution to an entrenched environmental issue.

    The technology equation

    Pakistan SAF technology implementation focuses on two principal conversion methods, each suited to different agricultural inputs:

    1. Hydroprocessing Esters and Fatty Acids (HEFA): For lipid-based feedstocks including used cooking oil and non-edible oils
    2. Alcohol-to-Jet (ATJ): Optimised for converting sugar-based inputs like wheat straw and rice husks

    The technologies produce aviation fuels chemically identical to conventional jet fuel, requiring no aircraft modifications, and deliver substantially improved carbon profiles. A third technology using carbon dioxide capture remains in development but holds promise for further emissions reductions. Dr Adeel Ghayur, described by The Express Tribune as an “eminent energy scientist and expert in circular economy,” indicated that commercial SAF technologies can scale from 100,000 to one million tonnes of annual production capacity, with corresponding economic impacts.

    Asia’s first private SAF project

    The December 2024 announcement of a $121 million SAF facility in Sheikhupura represented a milestone not just for Pakistan but for all of Asia. According to Pakistan Today, the Asian Development Bank (ADB) has committed $86.2 million to the project, with the International Finance Corporation (IFC) providing $35 million. What makes this development particularly noteworthy in the Asian context is its designation by the ADB as “the first private sector-led SAF project in Asia and the Pacific,” excluding China.

    For a region where state involvement typically dominates energy infrastructure, this private-sector approach merits attention from investors and policymakers across Asia. The facility is operated by SAFCO Venture Holdings Limited and owned by Taimur Shaikh and Ali Shaikh, and presents compelling environmental and economic metrics: projected annual production of 200,000 tonnes of SAF, reduction of 500,000 tonnes of carbon dioxide yearly, creation of 300 direct jobs, and facilitation of approximately 20,000 indirect employment opportunities in the supply chain and tertiary industries.

    The regional competitiveness question

    While Pakistan’s SAF ambitions are technologically sound, important questions remain about its competitiveness in an Asian market where Singapore, Japan, and South Korea have already established advanced biofuel capabilities.

    The price difference remains substantial, with SAF currently commanding approximately $2,500 per metric tonne versus $700 for conventional jet fuel. For price-sensitive Asian carriers navigating post-pandemic recovery, this cost gap presents significant challenges to adoption.

    Dr. Ghayur said in The Express Tribune that “strengthening R&D is essential for Pakistan to remain competitive in the global SAF market, secure its position as a hub for innovation, and maintain leadership as SAF adoption rises across Asia.” The acknowledgement reflects awareness of the technological race underway in the region.

    For Asian nations with similar agricultural profiles – Bangladesh, Vietnam, Thailand, and Indonesia – Pakistan’s SAF initiative offers a potential template for converting agricultural waste into aviation biofuels and addresses seasonal air pollution events. The multiplicative benefits – enhanced energy security, emissions reductions, rural economic opportunities, and foreign direct investment – align with development priorities across South and Southeast Asia.

    Four-dimensional solution

    Pakistan SAF technology implementation addresses four interconnected challenges that resonate in developing Asian economies:

    1. Energy security: Reducing petroleum import dependence via domestic production
    2. Economic development: Creating value-added manufacturing with substantial job creation potential
    3. Foreign direct investment: Attracting capital for industrial-scale bioprocessing operations
    4. Environmental mitigation: Addressing agricultural burning emissions and aviation carbon footprints

    Critical path forward

    For Pakistan’s SAF sector to achieve its potential, several hurdles will need to be surmounted. First, continued investment beyond the initial Sheikhupura facility will be necessary to achieve meaningful scale. Second, as SAF technologies evolve, Pakistan will need to maintain technological competitiveness through sustained R&D investment. Finally, efficiency improvements in agricultural waste collection and transportation will be essential to maintain favourable economics.

    The byproduct potential enhances the business case further, with SAFCO’s facility projected to produce 18,000 tonnes of bionaphtha annually for sustainable plastics production, according to Pakistan Today.

    As Dr Ghayur concluded in The Express Tribune, “The comprehensive policy roadmap will serve as both a blueprint and a catalyst to propel Pakistan to the forefront of the global SAF revolution.”

    While significant challenges remain in scaling production, optimising costs, and matching competitive alternatives, Pakistan’s SAF technology trajectory represents a distinctive approach to circular economy implementation with potential regional application across all of Asia’s agricultural economies.

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    Jio’s open telecom AI platform: four tech giants forge India-led network revolution https://techwireasia.com/2025/04/jios-open-telecom-ai-platform-four-tech-giants-forge-india-led-network-revolution/ Fri, 11 Apr 2025 08:50:59 +0000 https://techwireasia.com/?p=241716 Open Telecom AI Platform aims to redefine network operations. Integrates-edge AI on all telecom layers. New partnership could position India as leader in telecom innovation. The Telecom AI Platform collaboration between Jio Platforms Limited (JPL), AMD, Cisco, and Nokia revealed at last month’s Mobile World Congress 2025 may represent a significant shift in how telecom […]

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  • Open Telecom AI Platform aims to redefine network operations.
  • Integrates-edge AI on all telecom layers.
  • New partnership could position India as leader in telecom innovation.
  • The Telecom AI Platform collaboration between Jio Platforms Limited (JPL), AMD, Cisco, and Nokia revealed at last month’s Mobile World Congress 2025 may represent a significant shift in how telecom networks evolve in coming years.

    The partnership focuses on developing an open AI framework for network operations, and comes as service providers worldwide face mounting pressure to improve efficiency and create new revenue streams.

    Announced on March 3, the alliance brings together expertise across RAN, routing, AI data centres, security, and telecom infrastructure to create what the companies describe as a “central intelligence layer” for telecom and digital services. The multi-domain intelligence framework aims to integrate AI and automation in all network operations, with Jio serving as the first implementation case.

    “We are building a multimodal, multi-domain orchestrated workflow platform […] for the telecom industry,” said Mathew Oommen, Group CEO of Reliance Jio. He highlighted the platform’s potential to transform networks into “self-optimising, customer-aware ecosystems.”

    Technical foundations and AI

    What sets the Telecom AI Platform apart is its technological approach. The platform will be LLM-agnostic and use open APIs, using multiple forms of artificial intelligence including agentic AI, general and domain-specific LLMs, Small Language Models (SLMs), and non-GenAI machine learning techniques.

    AMD’s chair and CEO Lisa Su heralded “more secure, efficient, and scalable networks,” made possible through the platform, which uses Cisco’s Agile Services Networking and Data Centre Networking, plus Nokia’s capabilities in RAN, Core, fixed broadband, and optical transport.

    India first, then global expansion

    The Open Telecom AI Platform’s first customer, Jio, describes a “replicable reference architecture and deployable solution for the broader global service provider industry.”

    The company hopes to position India as a front-runner in AI-driven telecom innovation. The timing of the project is significant, as telecom operators worldwide face increasing pressure to enhance network performance and offer new services beyond those of traditional telecom infrastructure.

    “The initiative goes beyond automation – it’s about enabling AI-driven, autonomous networks that adapt in real-time, enhance user experiences, and create new service and revenue opportunities across the digital ecosystem,” Oommen said.

    Real-world applications and benefits

    Industry analysts suggest the Telecom AI Platform could drive significant improvements in several key areas:

    1. Network security: Enhanced threat detection and prevention through AI-driven analysis across network layers
    2. Operational efficiency: Reduced total cost of ownership through automation and predictive maintenance
    3. Self-healing networks: Autonomous identification and resolution of network issues before they impact service
    4. Revenue generation: Creation of new AI-enabled services and applications for enterprise and consumer segments

    Potential timeline and global impact

    While specific deployment timelines weren’t disclosed in the announcement, the companies indicated that development is actively underway. The platform’s open architecture design suggests its impact could extend far beyond Jio’s network in India.

    The Telecom AI Platform represents a significant step toward what industry experts call “cognitive networks” – telecommunications infrastructure with embedded intelligence that can learn, adapt, and evolve autonomously. For global telecom operators watching this development, the platform could provide a blueprint for integration that addresses their most pressing challenges: reducing operational costs, enhancing security posture, improving customer experience, and developing new revenue streams.

    As telecom networks continue their evolution toward 6G and beyond, initiatives like this Telecom AI Platform may well determine which operators thrive in the future – and which countries will lead the next wave of telecommunications innovation.

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    Adarsh Developers suffer total data loss after cloud deletion https://techwireasia.com/2025/02/adarsh-developers-full-data-loss-s4hana-sap-aws-it-supply-chain-complexity/ Tue, 25 Feb 2025 11:36:59 +0000 https://techwireasia.com/?p=239894 Total data loss for Indian property developers. Courts to determine responsibility. Centralised assets create points of failure. The experiences of building developers Adarsh Developers at the hands of cloud provider AWS is a cautionary tale for those organisations entrusting their most valuable assets to the cloud. In May 2023, the company was persuaded to opt […]

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  • Total data loss for Indian property developers.
  • Courts to determine responsibility.
  • Centralised assets create points of failure.
  • The experiences of building developers Adarsh Developers at the hands of cloud provider AWS is a cautionary tale for those organisations entrusting their most valuable assets to the cloud.

    In May 2023, the company was persuaded to opt for a system upgrade by AWS to increase the security of its cloud-hosted assets. Adarsh Developers hosted its ERP platform, SAP S/4HANA, on AWS. Given that AWS and SAP held data vital to the company (including detailed financial records), the proposed update seemed like a sensible idea.

    Fast forward to January 9th this year, and the company discovered that as of 10:48am, the entire SAP S/4HANA platform had been wiped from AWS disks, thus bringing the business to a complete halt. With no customer data, supplier details, financial information – everything, in fact – it was as if Adarsh Developers no longer existed on AWS. According to The Hindu, the company has since estimated its losses at ₹5 crores (around US$576,500) per day since Jan 9.

    The Indian police have raised an FIR (first information report) against AWS under the IT Act, citing fraud and impersonation. Adarsh Developers states its financial losses due to the data outage are in excess of ₹100 crores (US$11.5 million), quoting this figure in the filing.

    The company’s SAP integration and consultancy partner, SAVIC, has investigated the massive data loss, and placed the blame at the doors of AWS, and/or its reseller, the Redington Group. The company claims in the FIR that the deletion of Adarsh Developers’ data was invoked “at root level” (meaning by an account with superuser privileges) by Redington personnel.

    AWS India, via a spokesperson to The Hindu, stated: “The claims against AWS are false. AWS operated as designed and is not responsible for the deletion […].” All the parties involved (SAVIC, Redington, AWS, and Adarsh Developers) have to submit technical data to back their stories.

    The case and the issues surrounding massive data loss from cloud providers throw into relief several issues that are continuing concerns of data professional, operations managers, cybersecurity personnel, and systems providers.

    • Any complexity in an IT supply chain increases the chances of data loss, and delays the identification of the root causes of critical issues (and therefore, their remediation),
    • Service centralisation in terms of computing platforms (using an ERP as opposed to multiple point-products) comes with inherent risk,
    • Provisioning a single cloud provider can create another point of failure.

    If there is one lesson to be learned from the experience of Adarsh Developers, it is that cloud providers are not responsible for maintaining the integrity nor even continuing existence of data stored with them, and, therefore, are not responsible any client’s business continuity. Although companies like AWS, Microsoft, and Google are household names, there is no guarantee that a business’s assets kept by them are inviolable. Even such ‘givens’ as Office 365 email continuing reliably have to be questioned, and companies should take steps to ensure their own data is quickly recoverable, regardless of hosting and platform(s).

    Whatever the eventual outcome of the Indian court proceedings, the victim in this case can’t hope to achieve enough compensation for its loss of business, reputation, and time. Cloud services are merely ‘someone else’s computer’. The realisation of the implications of centralisation, and in some cases, the high cost of cloud services is leading many organisations to adopt multi-cloud strategies, or take at least some of their critical systems back on-premise.

    Human error is the most likely cause of the disaster that has befallen Adarsh Developers, and the culprit being established is moot, apart from giving Adarsh a possible source of compensation. Mistakes, misconfiguration, or security lapses will happen, and investment in appropriate recovery processes is (or should be) as central to modern businesses as email and internet access.

    The most-publicised data losses stem from the activities of bad actors, either externally or in the guise of insider threats such as disgruntled employees. Simple human error gets little coverage.

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    Quick-commerce Zepto comes home for IPO https://techwireasia.com/2025/01/zepto-indian-ipo-home-from-singapore-float-investment-expansion/ Fri, 31 Jan 2025 13:16:33 +0000 https://techwireasia.com/?p=239771 In many sectors, an Indian IPO makes sense. More Indian companies return home for investment. Quick-commerce market heats up with Zepto. Growing Indian companies have a tendency to move around from nation to nation, depending on their stage of growth. Home-grown businesses seeking external investors are often to be found in Singapore, where foreign venture […]

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    • In many sectors, an Indian IPO makes sense.
    • More Indian companies return home for investment.
    • Quick-commerce market heats up with Zepto.

    Growing Indian companies have a tendency to move around from nation to nation, depending on their stage of growth. Home-grown businesses seeking external investors are often to be found in Singapore, where foreign venture capital is more readily accessible.

    For the highly successful outfit, there’s also the possibility of a listing on the London or New York stock exchanges, something that’s not allowed under Indian financial regulation.

    But several high-profile companies that spent time based abroad have returned to India in the last few years to float on the Indian stock exchange, including PhonePe and Groww. The latest to follow this path is Zepto, an online grocery and household items store, and a challenger to the incumbents of the quick-commerce space.

    The company is currently valued at US$5 billion, having raised US$1.35 billion while domiciled in Singapore. After its relocation back onto home turf, it plans to raise a further US$1.1 billion for an initial public offering (IPO) later this year.

    In the last four years, many companies have have floated on Indian stock exchange, with over 300 companies raising in excess of $20bn in 2024. The chairman of AIBI (Association of Investment Bankers of India), Mahavir Lunawat has stated that “India has successfully surpassed both the US and Europe with more than the number of IPOs [those exchanges have] listed.”

    However, the country’s securities market regulator (SEBI – Securities and Exchange Board of India) is considering measures to prevent unofficial share trading before upcoming IPOs. This comes after a flurry of black-market trading that has tarnished India’s emerging reputation as a place where domestic investors are well-funded enough to float businesses large and small.

    Indian IPO for micro and small business

    Unlike the large stock exchanges of London, New York and Tokyo, the Indian exchange has seen a wide range of company sizes successfully floating, including many SMEs. So-called ‘low float’ or ‘small equity size’ companies can use a share issue to make the leap from small concern to dynamic expansion.

    According to the Indian government, “the main feature of SME IPOs is that they provide an alternative method for SMEs to raise capital for their business. Unlike traditional loans, which require interest to be paid on repayment, equity funding through IPOs does not burden the small enterprise business with debt. This benefits SMEs looking to finance their expansion, development, and research.”

    In the past, companies like Flipkart have successfully launched themselves on foreign exchanges, but this strategy is no longer the only possibility, thanks to the Indian government’s pro-domestic, growth-oriented financial policies.

    Big companies like Zepto have their eyes on out-competing better known competitors, which in its case are Blinkit (previously Grofers), which tripled its revenue in the last financial quarter of 2024, and Swiggy, valued at US$13.3 billion.

    A burgeoning demand for food and grocery deliveries in India and the country’s high population (currently 1.5 billion people) mean that home-grown business talent and technical skill in this market can create massive success domestically, without having to look abroad for investment monies.

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    Wipro and Netskope partner for cybersecurity https://techwireasia.com/2024/12/wipro-and-netskope-partner-for-cybersecurity/ Fri, 06 Dec 2024 15:58:02 +0000 https://techwireasia.com/?p=239508 Wipro Limited, a leading technology services and consulting company, and Netskope, a leader in Secure Access Service Edge (SASE), have announced a new partnership, one that will provide worldwide enterprises with cybersecurity optimisation advisory services. The Wipro CyberTransformSM Optimisation Service, powered by Netskope, will help improve cybersecurity outcomes for technology investments, people, and processes by […]

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    Wipro Limited, a leading technology services and consulting company, and Netskope, a leader in Secure Access Service Edge (SASE), have announced a new partnership, one that will provide worldwide enterprises with cybersecurity optimisation advisory services.

    The Wipro CyberTransformSM Optimisation Service, powered by Netskope, will help improve cybersecurity outcomes for technology investments, people, and processes by analysing their current cybersecurity and infrastructure investments. Customers can benefit from consolidation guidelines for better efficiency and enjoy cost-optimised solutions that reduce expenses without compromising on security or performance.

    Global Head of Advisory Services, Cybersecurity and Risk Services at Wipro Limited, Saugat Sindhu, says this latest collaboration will help organisations manage the complexity of cybersecurity tools and technologies.

    “Many organisations today face the challenge of managing application sprawl with distributed technologies in their cybersecurity operations. Through this partnership with Netskope, we will be able to deliver tailored SASE business cases and comprehensive financial analyses, enabling our clients to optimise their cybersecurity spend and achieve superior performance outcomes.”

    The Wipro CyberTransformSM Optimisation Service combines Wipro’s Automated Regulatory Compliance (ArC) and Netskope’s Valueskope platform to help businesses maintain compliance and improve financial efficiency.

    ArC is a service that allows users to track any changes in industry-specific national and international regulations, ensuring compliance. Valueskope is an SaaS-based platform offering detailed financial analysis and tailored business cases.

    This latest partnership between Wipro and Netskope promises to streamline cybersecurity strategies, enhance compliance, and strengthen technology investments, resulting in improved performance and cost efficiency for global enterprises.

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    Equal secures $10M to battle India’s rising $14b digital fraud crisis https://techwireasia.com/2024/11/equal-secures-10m-to-battle-indias-rising-14b-digital-fraud-crisis/ Wed, 27 Nov 2024 22:32:20 +0000 https://techwireasia.com/?p=239433 Equal raises $10M Series A to combat rising cyber fraud in India. The Hyderabad-based fintech integrates 50+ identity databases and serves 350+ customers. Hyderabad-based identity verification startup Equal has raised $10 million in Series A funding, positioning itself at the forefront of the fight against digital fraud in India. The investment, led by Prosus Ventures […]

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  • Equal raises $10M Series A to combat rising cyber fraud in India.
  • The Hyderabad-based fintech integrates 50+ identity databases and serves 350+ customers.
  • Hyderabad-based identity verification startup Equal has raised $10 million in Series A funding, positioning itself at the forefront of the fight against digital fraud in India. The investment, led by Prosus Ventures at an $80 million post-money valuation, comes as India grapples with cyber fraud losses projected to exceed $14 billion—approximately 0.7% of the country’s GDP—in 2025.

    Founded in 2022 by Keshav Reddy and former Swiggy engineering director Rajeev Ranjan, Equal emerged at a critical time as India faces mounting challenges in digital fraud. The startup has quickly established itself as a critical player in fintech security, offering solutions that streamline know-your-customer (KYC) requirements, fraud prevention, and regulatory compliance.

    Equal’s platform connects over 50 identity databases and thousands of API providers, helping businesses struggling with digital verification and compliance. The comprehensive approach has resonated strongly with the market, as evidenced by the company’s impressive client portfolio, which has developed in just two years of operations.

    The startup has successfully onboarded over 350 customers, including industry giants such as State Bank of India, HDFC Bank, ICICI Bank, Reliance Jio, Airtel, Uber, and Zoom. This rapid adoption by major financial institutions and technology companies demonstrates the urgent market need for efficient identity verification solutions.

    See also:

    Equal recently acquired a stake in account aggregator OneMoney to enhance its service offerings. The acquisition combines Equal’s identity verification capabilities with OneMoney’s consent-based financial data-sharing infrastructure.

    The Indian market for identity verification is becoming increasingly competitive, with established players like Perfios (backed by Warburg Pincus and Teachers’ Venture Growth), IDfy (backed by TransUnion), and Bureau (backed by GMO VenturePartners) also operating in the space. 

    However, Equal differentiates itself by positioning itself as an aggregator, even partnering with some competitors to provide more comprehensive solutions. A practical example of Equal’s impact comes from Upstox, one of its early customers. The trading platform processes approximately 350,000 transactions monthly through Equal’s system. 

    According to Upstox’s CEO Ravi Kumar, who has also invested in Equal, the platform’s cost-effectiveness and high uptime make it his preferred choice over building similar technology in-house. The fresh capital injection will scale Equal’s operations, expand its product suite, and help it forge strategic partnerships. 

    The expansion comes at a crucial time when the Indian government is introducing new regulatory requirements to combat fraudulent digital transactions, often placing additional technical burdens on businesses. Overall, the startup’s growth trajectory aligns with India’s broader digital transformation as the country—now the world’s most populous nation and second-largest internet market after China—becomes increasingly digitally active. 

    While beneficial for economic growth, the country’s digital shift has also exposed vulnerabilities in the financial system, including threats to government-backed systems like Aadhaar. Equal’s approach to addressing these challenges through technology and partnerships represents a step forward in India’s fight against digital fraud. 

    By providing businesses with tools to maintain regulatory compliance and streamline operations, Equal is positioning itself as a major player in India’s evolving digital security landscape.

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    India plans laptop import restrictions to drive domestic production https://techwireasia.com/2024/10/india-plans-laptop-import-restrictions-to-drive-domestic-production/ Fri, 25 Oct 2024 08:50:39 +0000 https://techwireasia.com/?p=239225 India plans to limit laptop imports to boost local production. Apple is expected to increase domestic manufacturing. India is planning to limit the imports of laptops, tablets, and personal computers starting January 2025, according to two government insiders. The goal is to push companies like Apple to ramp up their manufacturing efforts in the country, […]

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  • India plans to limit laptop imports to boost local production.
  • Apple is expected to increase domestic manufacturing.
  • India is planning to limit the imports of laptops, tablets, and personal computers starting January 2025, according to two government insiders. The goal is to push companies like Apple to ramp up their manufacturing efforts in the country, boosting the domestic economy.

    If the plan goes ahead, it could disrupt an industry valued between US$8 billion and US$10 billion and change how India’s IT hardware market operates, which currently depends heavily on imports.

    A similar proposal was put on hold last year due to resistance from companies and lobbying by the United States. Since then, India has monitored imports through a raft of governance that is set to expire this year. Firms are now required to seek new permissions for imports starting next year.

    Government authorities feel the industry has had enough time to adapt to the changes: According to one source, talks with all stakeholders will begin soon, and the limits may be delayed for a few months if necessary.

    As Reuters reported, the Ministry of Electronics and Information Technology (MeitY) is already working on a new system that would require companies to get prior approval before importing devices. Currently, importers can bring in as many domestic tech appliances as they like after completing a simple online registration.

    The Indian market is dominated by big players like HP, Dell, Apple, Lenovo, and Samsung, with two-thirds of India’s demand being met by imports, a large proportion of which comes from China. India’s IT hardware market is valued at around US$20 billion, but only US$5 billion of that is produced domestically, according to data from Mordor Intelligence.

    To improve the quality of devices entering the country, the government is also considering introducing minimum quality standards under its “compulsory registration order” for laptops, notebooks, and tablets. This would help weed out lower-quality products, according to officials.

    “We’re exploring these restrictions because global treaties prevent us from using tariffs on laptops and tablets. That limits our policy options to curb imports,” said one government official.

    The Ministry of Trade has stated that the final decision on the import management system will be made following thorough discussions with the electronics ministry and other stakeholders.

    The approach might greatly benefit local manufacturers such as Dixon Technologies, which has agreements with global brands like HP to manufacture laptops and computers in India. Dixon, for example, is aiming to produce 15% of the country’s total demand.

    Boosting local production and semiconductor ambitions

    According to an industry source involved in discussions with the government, the limits on imports should be aligned with India’s current domestic production capacity.

    India’s key production incentive scheme for IT hardware has already attracted major players such as Acer, Dell, HP, and Lenovo. According to the electronics minister, most of these companies are ready to begin manufacturing in the country. To further encourage local production, the government has also rolled out federal subsidies totaling roughly US$2.01 billion.

    India is making progress in semiconductor manufacturing, which is crucial for the electronics and IT hardware industry. In 2023, US chipmaker Micron announced a major investment in Gujarat to build an assembly and test facility for memory chips such as DRAM and NAND, establishing India as an essential player in semiconductor assembly.

    This was followed by further semiconductor initiatives, including Tata Electronics’ partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) to build a semiconductor fab in Gujarat, with a production capacity of 50,000 wafers per month. These efforts not only reduce reliance on imports but also align with India’s broader goal of technological self-reliance.

    Recent collaborations with global tech giants

    Global technology businesses are increasingly investing in India as part of a strategy to diversify supply chains and increase local production. Apple, for example, has dramatically increased its manufacturing presence in India. Cupertino has increased iPhone production through collaborations with Foxconn, Pegatron, and Wistron, in addition to building new retail shops. Other tech behemoths such as Dell, HP, and Lenovo have also increased local manufacturing, taking advantage of the Indian government’s production-linked incentive (PLI) schemes.

    According to the research firm Counterpoint, imports of fully-assembled laptops declined 4% in the first five months of 2024 compared to the previous year, as companies such as Lenovo and Acer increased local manufacturing, particularly for entry-level models.

    India has emphasised the importance of “trusted sources” for electronics and communication devices, particularly in light of increasing cybersecurity and data theft concerns. In 2022, Prime Minister Narendra Modi suggested that India should lessen its reliance on foreign countries for communication technology such as servers.

    In line with this, India intends to implement mandatory testing of “essential security parameters” for all CCTV cameras by April 2025.

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    India’s Paytm is in a crisis. What do we know about the fintech giant’s turmoil? https://techwireasia.com/2024/02/paytm-turmoil-unveiing-the-crisis-gripping-india-fintech-giant/ Mon, 05 Feb 2024 05:00:43 +0000 https://techwireasia.com/?p=237650 Paytm faces regulator scrutiny for possible questionable dealings between its banking arm and its payments app in India. The fintech giant also faces KYC lapses: thousands of unverified, single docs are used for many transactions to surpass limits, raising laundering concerns. RBI bars Paytm Bank from deposits or top-ups after February 29 and mulls license […]

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  • Paytm faces regulator scrutiny for possible questionable dealings between its banking arm and its payments app in India.
  • The fintech giant also faces KYC lapses: thousands of unverified, single docs are used for many transactions to surpass limits, raising laundering concerns.
  • RBI bars Paytm Bank from deposits or top-ups after February 29 and mulls license revocation in March.
  • Paytm, short for “Pay Through Mobile,” began its journey with a revolutionary idea – letting users make cashless transactions through their mobile phones. But it wasn’t until the whirlwind of India’s 2017 demonetization that Paytm soared to new heights. That year, Prime Minister Narendra Modi’s bold move shook up the cash-dependent economy, compelling many individuals and countless small merchants to seek alternatives. Amid the chaos, Paytm’s wallet emerged as the straightforward solution, drawing a massive influx of users. 

    Paytm emerged as a prime beneficiary of demonetization, witnessing a meteoric rise from 140 million users in October 2016 to a staggering 270 million by November 2017 following the demonetization program. The winds of change propelled Paytm to the forefront of India’s digital financial revolution. It has become a pioneering force, transforming how millions transact and engage with digital finance. 

    The platform provided a versatile and convenient solution for individuals and businesses, from small grocery purchases to utility bill payments. In short, Paytm’s success during demonetization contributed to the broader acceptance of mobile wallets in India. The platform’s simplicity and strategic marketing campaigns played a significant role in shaping the narrative around digital wallets as a reliable alternative to traditional currency.

    A QR code for Paytm is pictured at a shop in New Delhi on November 8, 2021.
    A QR code for Paytm is pictured at a shop in New Delhi on November 8, 2021. (Photo by Sajjad HUSSAIN/AFP).

    What is happening with Paytm in India now?

    Founded in 2010 by Vijay Shekhar Sharma, Paytm initially gained prominence as a mobile wallet but swiftly evolved into a comprehensive financial ecosystem. Over the years, Paytm has diversified its services, expanding beyond mobile wallets to offer various financial products. The platform now provides services ranging from digital payments, mobile recharges, and bill payments to insurance, wealth management, and even digital gold investments. 

    This diversification has positioned Paytm as a one-stop shop for various financial needs. By 2017, Paytm received approval from the Reserve Bank of India (RBI) to launch Paytm Payments Bank, a significant milestone in its journey. The Payments Bank allowed users to open savings accounts with zero balance requirements, seamlessly integrating banking services within the Paytm app. The bank is restricted from lending and can accept deposits of up to 200,000 Indian rupees. 

    For context, Paytm Payments Bank is primarily owned by Paytm (One 97 Communications), with a 49% stake, while the remaining 51% is held by Paytm’s chief executive and founder, Vijay Shekhar Sharma. The bank serves as a crucial banking partner for Paytm, holding funds from popular digital wallets within its operations. 

    All 330 million wallet accounts under the parent company are housed within Paytm Payments Bank, making it the repository for the money held in these wallets. However, It is noteworthy to know that on top of its immense success, Paytm was not short of challenges. Most recently, in a significant setback for one of India’s largest payment firms, the RBI has directed Paytm’s payments bank subsidiary to cease accepting new deposits in its accounts or popular wallets starting in March. 

    According to a report by Reuters, India’s central bank said it took action because of “persistent non-compliance and continued material supervisory concerns in the bank,” which it did not specify. The restriction, effective from March 1, 2024, follows a previous limitation imposed two years ago, preventing Paytm Payments Bank from onboarding new customers.

    Paytm Payments Bank was restricted from adding customers in March 2022 due to similar concerns but continued doing business with existing customers. It has been told to wind down most of its businesses this month. Moreover, local reports indicated that the banking regulator consistently raised concerns over various issues. 

    Sources reveal that apprehensions regarding money laundering and substantial financial transactions, amounting to hundreds of crores of rupees, between the well-known Paytm wallet and its less prominent banking arm prompted the RBI to take action against entities overseen by Vijay Shekhar Sharma. 

    It has also been disclosed that Paytm Payments Bank had numerous non-KYC (Know Your Customer) compliant accounts, with thousands of cases using a single PAN to open multiple accounts. Instances of transactions exceeding regulatory limits in minimum KYC pre-paid instruments, reaching crores of rupees, raised red flags for potential money laundering, as per sources.

    What is Paytm doing about the scrutiny by the Reserve Bank of India?

    Paytm's CEO on X.com
    Paytm’s CEO on X.com

    Paytm has committed to adhere to the RBI’s directives promptly. As part of compliance, it will discontinue its association with Paytm Payments Bank and exclusively collaborate with other banks. The company anticipates a potential adverse impact on its annual earnings before interest, tax, depreciation, and amortization (EBITDA), ranging from 3 billion rupees (US$36 million) to 5 billion rupees under the worst-case scenario.

    One 97 Communications (OCL), the parent of Paytm, said in an exchange filing that it would partner with other banks, not with Paytm Payments Bank (PPBL). “OCL has been working with other banks for the last two years. We will now accelerate the plans and move to other bank partners,” the company said.

    “Regarding the direction on termination of the nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL are moving the nodal account to other large commercial banks,” it added.

    In a reportBloomberg claims that India’s banking regulator is considering canceling Paytm Payments Bank’s license as early as next month, potentially impacting the growth plans of Paytm, a troubled local fintech giant. The RBI is prioritizing the protection of depositors and may take action after the February 29 deadline, sources told Bloomberg.

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