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Here’s what happened in India this week. We're focusing on manufacturing incentives and growth.
A 🧵1/13:
A 🧵1/13:
A big discussion going on is the expanding Production Linked Incentive (PLI) program—industrial policy intended to boost productivity
@Somnath1978 describes this as a form of “direct cash grants” for firms, a way for India to grow manufacturing skills
@Somnath1978 describes this as a form of “direct cash grants” for firms, a way for India to grow manufacturing skills
Over time the goal is to grow this to 1.5% of the Union budget. There is an ambitious goal to apply this to semiconductors, and have India become a critical hub in global IT supply chains. We saw this applied to the Vedanta-Foxconn $20b plant in Gujarat
Apple is also gearing up to make India an important manufacturing hub.
Apple is gearing up to produce as much as 25% of all iPhones in 2025, a huge shift from zero and reflecting how the world is rethinking concentration of production in China
Apple is also considering AirPod production in India
There is also a new $2.5b PLI program in solar — and in general solar and wind have been huge growth engines for India so far
The gov is also planning a mega platform across several ministries to create a one-stop shop for planning approval
Corporations are also considering India for EV manufacturing
So these are the big target areas for production:
- Electronics (including semis, phones)
- Renewable energy
- Autos
- Electronics (including semis, phones)
- Renewable energy
- Autos
I talked earlier about how the Adani group is a major Indian conglomerate focusing on domestic production
The Economist also talks about the Tata group in this context.
Previously, the Tata group has concentrated on meeting foreign markets. But now, they are reorienting around producing in India; for both domestic consumption and export.
economist.com
Previously, the Tata group has concentrated on meeting foreign markets. But now, they are reorienting around producing in India; for both domestic consumption and export.
economist.com
Here's last week's digest — continuing the theme on corporations and manufacturing.
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