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India to Establish Central Intelligence Agency for Manufacturing: Boosting the Nation's Manufacturing Sector

India is set to establish a central intelligence agency for manufacturing in order to bolster the country's manufacturing sector and make it more globally competitive. This move comes as part of the government's efforts to increase the share of manufacturing in GDP to 25% by 2047, up from the current 17%. But how will this intelligence unit contribute to achieving this ambitious goal? Analyzing Key Performance Indicators for Manufacturing Success The proposed intelligence unit will conduct a comprehensive analysis of the domestic market to identify products with high demand and growth potential. By studying value-added, export performance, technological prowess, supply chain effectiveness, labor productivity, and access to global markets, the agency aims to develop key performance indicators (KPIs) that will drive manufacturing success. Government Schemes and Initiatives: Driving Manufacturing Expansion The intelligence unit will also evaluate the impact of various government schemes and initiatives aimed at boosting local production and encouraging export substitution. Notable programs include the Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore, the Make in India initiative, and the Phased Manufacturing Programme (PMP). Assessing the effectiveness of these schemes will be crucial in formulating future strategies. Benchmarking Global Manufacturing: Learning from the Best To gain insights and learn from global best practices, the intelligence unit will study the top ten countries and their contribution to global manufacturing output. This analysis will help identify strategies and approaches that can be adopted to enhance India's manufacturing capabilities. The unit will collaborate with industry bodies, officials from commerce and industry, and other ministries to ensure a comprehensive understanding of global trends. Export Potential and Ease of Doing Business: Removing Barriers In addition to assessing manufacturing competitiveness, the intelligence unit will evaluate India's export potential by identifying products with global demand. This information will be instrumental in guiding foreign trade negotiations and reducing trade barriers. Furthermore, the agency will analyze policies and schemes aimed at enhancing manufacturing competitiveness and recommend reforms to streamline regulations and promote ease of doing business. Consultancy Agency and Implementation Strategy To facilitate the establishment and functioning of the intelligence unit, the government plans to hire a consultancy agency that specializes in manufacturing intelligence. This agency will provide expertise and guidance throughout the process, ensuring effective implementation of the unit's objectives. The intelligence unit will also collaborate with the Steering Committee for Advancing Local Value-Add and Exports Research Analysis, Programme Implementation, and Data Intelligence Unit (SCALE RAPiD) for comprehensive insights. Future Outlook: A Thriving Manufacturing Sector The establishment of a central intelligence agency for manufacturing marks a significant step toward realizing India's vision of becoming a global manufacturing powerhouse. By leveraging data-driven insights, benchmarking global best practices, and evaluating the impact of existing policies, this initiative aims to drive growth, attract investments, and enhance India's overall competitiveness in the manufacturing sector. With a focus on innovation, export promotion, and ease of doing business, India is poised to establish itself as a key player in the global manufacturing landscape.

1 Apr 2024

Positive Reads

Global News

India's FY24 engineering exports to Russia more than quadrupled by February.

Amidst the ebb and flow of global trade dynamics, India's engineering exports have emerged as a symbol of resilience and growth, with a remarkable surge witnessed in the 2023–24 fiscal year. According to recent data released by the Indian Engineering Export Promotion Council (EEPC), India's exports to Russia soared to unprecedented levels, crossing the $1.2 billion mark by February, marking a quadruple increase from the previous fiscal year. This surge in exports to Russia contrasts with the slight dip in shipments to traditional markets like the United States and China. Against the backdrop of evolving trade dynamics, India's engineering sector is forging new partnerships and avenues for growth, as highlighted by Mr. Garodia, Chairman of EEPC India. As India navigates through the complexities of global commerce, the surge in engineering exports not only underscores the sector's resilience but also underscores India's growing prominence as a key player in the global market landscape. Up until February, shipments to the United Arab Emirates increased by 16 percent yearly to $5.22 billion, while sales to Australia increased by 5 percent to $1.30 billion. Additionally, it said that the total engineering exports from April to February of 2023–24 were $98.03 billion, compared to $96.84 billion during the same time the previous year. India's engineering exports have been steadily increasing over the past few months. The sector's outstanding performance over the previous three months allowed for a substantial export gain. Overall, cumulative engineering exports started narrowing down and witnessed growth, recorded at US$ 98.03 billion during April-February 2023-24 as against US$ 96.84 billion during April-February 2022-23, securing 1.23% growth ~ (Source: Google Images) "In the last few months, engineering exports from India have been on a steady growth path. In February 2024, India’s engineering exports reached US$ 9.94 billion recording the highest y-o-y growth (15.9%) in the fiscal 2023-24. The remarkable performance of the sector in the last three months made it possible for the cumulative exports also to record growth," said Mr Garodia. "The percentage of West Asia and North Africa in India's engineering export basket climbed from 12% to 15% this year, indicating the effectiveness of the FTA with the UAE and the GCC talks, he continued. This accomplishment is attainable despite the challenging state of global commerce." (Source: Google Images) Studies show that, excluding years of global recession, trade growth was at its weakest in the past 50 years in 2023. The post-pandemic recovery attempts were hindered by persistent geopolitical tensions and a global shortage of demand. "As India's present economic performance stabilizes, we are hoping that with the good turn of the tide in global commerce, EEPC India Chairman Arun Kumar Garodia remarked. The exporting community in India will be able to increase exports to all-time highs. As India navigates through the complexities of global commerce, the surge in engineering exports not only underscores the sector's resilience but also underscores India's growing prominence as a key player in the global market landscape.

27 Mar 2024

Global News

Good News

India's Smartphone Exports to US Skyrocket to $3.53 Billion in April-December FY24

India's smartphone exports to the United States experienced a remarkable surge, reaching a staggering $3.53 billion during the period from April to December in the fiscal year 23-24, according to data from the commerce ministry. This surge represents a significant jump from the $998 million recorded during the same period in the previous fiscal year. Impressive Growth and Market Share Expansion The substantial increase in outbound shipments of smartphones contributed to a remarkable growth in market share. During the April-December period of FY24, India's smartphones accounted for 7.76% of the US market, compared to a mere 2% during the corresponding period of the previous year. This growth demonstrates the rising prominence of Indian smartphone manufacturers in the global market. Emergence as the Third-Biggest Smartphone Exporter to the US The surge in exports has propelled India to become the third-largest smartphone exporter to the United States. This achievement highlights the country's growing manufacturing capabilities and its ability to cater to the demands of international markets. The overall growth in smartphone production played a vital role in boosting India's export numbers. Declining Share of China and Vietnam India's remarkable performance in the US smartphone market is mirrored by the declining market share of China and Vietnam. During the nine-month period of FY24, China's smartphone exports to the US decreased from $38.26 billion to $35.1 billion, while Vietnam witnessed a decline from $9.36 billion to $5.47 billion in the same period. South Korea and Hong Kong's Performance Apart from India, South Korea and Hong Kong were the other major smartphone exporters to the US during the period under review. South Korea's smartphone exports to America witnessed a significant increase, rising from $432 million to $858 million. On the other hand, Hong Kong experienced a slight decline, with sales decreasing from $132 million to $112 million in April-December 2022-23. India's Growing Significance as a Production Hub India's growing prominence as a production hub for smartphones is evident from its increasing export numbers. The inclusion of Apple, the US-based iPhone manufacturer, in domestic manufacturing, coupled with the implementation of the Product Linked Incentives (PLI) scheme, has further boosted India's standing in the global smartphone manufacturing landscape. Positive Outlook for India's Smartphone Exports With the ongoing momentum and the country's dedication to enhancing its manufacturing capabilities, India's smartphone exports are expected to continue their upward trajectory. The focus on technological advancements, quality production, and competitive pricing positions India favorably in the global smartphone market. With the continued growth in production and the implementation of favorable policies, India's smartphone industry is poised for further success on the global stage.

22 Mar 2024

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India to Become Exporter of Forged Wheels for Railways: Ashwini Vaishnaw

India is poised to make a significant mark in the global railway industry as it gears up to become an exporter of forged wheels used in railways. Ashwini Vaishnaw, the Union Minister of Railways, announced this groundbreaking development, highlighting the country's shift from being an importer to an exporter of this crucial train component. With the construction of a manufacturing facility underway in Tamil Nadu, India's foray into forged wheel exports is set to revolutionize the railway sector. India's Transition to Forged Wheel Exporter: For many years, India relied on imports for forged wheels used in its railways. However, with the launch of the Vande Bharat trains, it became apparent that specialized forged wheels were required to meet the demands of the modern rail network. Consequently, the Indian Railways embarked on a joint venture with Ramakrishna Forgings Ltd to establish a manufacturing facility in Gummidipoondi near Chennai. With an initial investment of Rs 650 crore, this facility is expected to have a production capacity of 2.5 lakh wheels. Implications for the Railway Industry: The transition from importing to exporting forged wheels holds significant implications for the railway industry, both domestically and internationally. India's newfound expertise in manufacturing high-quality forged wheels opens up opportunities for the country to supply the global market. The wheels produced will not only cater to the growing demands of the Indian Railways but also be exported to various countries. This shift has the potential to boost India's economy and strengthen its position as a global player in the railway sector. Economic Impact and Trade Potential: The export of forged wheels is a testament to India's manufacturing prowess. It not only showcases the country's ability to meet its own railway requirements but also positions it as a competitive player in the international market. The export of these wheels is expected to generate substantial revenue, contributing to India's economic growth. Additionally, it will enhance trade relations with partner countries, creating new avenues for collaboration and further export opportunities. The Role of Tamil Nadu: Tamil Nadu emerges as a key player in this transformative venture, as the manufacturing facility is being established in Gummidipoondi. The state's strategic location and existing industrial infrastructure make it an ideal choice for this project. With the wheels' production slated to commence within the next 16-18 months, Tamil Nadu is set to witness a significant boost in its manufacturing sector. This development aligns with the government's vision of promoting industrial growth and employment opportunities in the region. Future Prospects and Standard Gauge Trains: India's foray into forged wheel exports signifies a paradigm shift in the railway industry. As the Integral Coach Factory in Tamil Nadu achieves remarkable milestones, it is also gearing up to develop standard gauge Vande Bharat trains. These trains, designed to operate on the standard gauge system used globally, will pave the way for India's future exports. The development, testing, and eventual launch of these trains will require national and international approvals, but it promises to position India as a leading manufacturer of standard gauge rolling stock.

18 Mar 2024

Good News

India Emerges as Global Mobile Phone Manufacturing Hub, Producing 97% of Local Demand

India has achieved a significant milestone in the mobile phone manufacturing industry, emerging as a global hub and producing 97% of its total demand domestically. This remarkable feat has been attributed to government policies and initiatives that have attracted global players and stimulated local production. With mobile phones now being India's fifth-largest export commodity, there are valuable lessons to be learned from countries like Vietnam, which have become export giants in the field. Explosive Growth in Mobile Phone Production According to a report by the India Cellular and Electronics Association (ICEA), mobile phone manufacturing in India has experienced a staggering 21-fold increase in value, reaching ₹4.1 lakh crore in the last decade. This growth reflects an increase of 2,000% from ₹18,900 crore in 2014-15 to the estimated ₹4,10,000 crore in the financial year 2023-24. The exponential rise in production has been accompanied by a significant boost in exports, with the industry expecting to reach ₹1.2 lakh crore by the end of FY24, marking a 7,500% increase over a decade. Government Initiatives and Policies The Indian government's Phased Manufacturing Programme (PMP), launched in May 2017, played a pivotal role in promoting domestic production of mobile handsets. Under this initiative, the government incentivized large-scale manufacturing and created a conducive policy environment. From just two mobile phone factories in 2014, India has now become the second-largest global producer. The Production Linked Incentive (PLI) scheme for Large-Scale Electronics Manufacturing and IT hardware has further contributed to India's competitiveness in electronics manufacturing. The scheme offers incentives to eligible players, attracting leading global contract manufacturers such as Foxconn, Pegatron, Rising Star, and Wistron to establish production bases in India. Export Growth and Market Dominance India's success in mobile phone manufacturing has also paved the way for significant growth in exports. The ICEA report highlights that 30% of the production in FY24 will be dedicated to exports. Devices manufactured in India are already being exported to countries like the United Kingdom, the Netherlands, Austria, and Italy, as well as West Asian, North African, and South American markets. This export growth has propelled mobile phones to become India's fifth-largest export commodity. The country now seeks to learn from other export giants like Vietnam to further expand its global market presence. Learning from Vietnam's Success Vietnam, known for its thriving electronics manufacturing industry, provides valuable lessons for India's journey towards becoming an export giant. India can examine Vietnam's strategies and identify areas for improvement in terms of infrastructure development, ease of doing business, and a skilled workforce. By fostering a close working relationship between industry stakeholders and key government ministries, such as the Ministry of Electronics and IT, DPIIT, Ministry of Commerce, Ministry of Finance, NITI Aayog, and the Prime Minister's Office, India can create a conducive environment for growth and attract more global players.

13 Mar 2024

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Munitions India Receives Export Orders Worth ₹6,000 Crore, Expects Surge in Defence Exports

Munitions India, a leading ammunitions maker, is set to witness a significant boost in its export orders, with commitments worth ₹6,000 crore. The Pune-based company, which was established in November 2021 as part of the reorganization of the Ordnance Factory Board into seven Defence Public Sector Undertakings (PSUs), specializes in the production of bullets, shells, mortars, rockets, and hand grenades. This surge in export orders is evidence of the growing global demand for India's defence products. Growing Demand for Indian Defence Products According to Gnaneshwar Tyagi, Chief General Manager of the High Energy Projectile Factory at Munitions India, the company's products are highly sought after by various countries. He mentioned that the United Arab Emirates (UAE), Vietnam, and an undisclosed European country are among their prominent overseas customers. This surge in demand has positioned Munitions India as a key player in the global defence market. Promising Outlook for Indian Defence Exports The export orders received by Munitions India are indicative of the overall positive trend in India's defence exports. Raj, the Joint Director of the Export Promotion Cell in the Department of Defence Production, Ministry of Defence, believes that India's defence exports will exceed ₹20,000 crore in the fiscal year 2023-24. This growth trajectory is expected to continue, with estimates of ₹25,000 crore in 2024-25 and ₹35,000 crore in the subsequent year. The presentation by Dr Sanjeev Kumar Joshi, Deputy DEO of Brahmos Aerospace, further highlighted the global demand for India's defence products. Reduction in Imports and Strengthening of the Domestic Defence Industry India's defence sector has witnessed a significant shift in recent years, with a decreasing imports-to-exports ratio. While imports of defence products increased from ₹41,198 crore in 2013-14 to ₹50,061 crore in 2021-22, exports surged from ₹1,153 crore to ₹12,815 crore during the same period. This reduction in the imports-to-exports ratio indicates the growing self-reliance and strengthening of the domestic defence industry. Expansion of Munitions India's Product Range Munitions India is set to expand its product range by introducing the production of 125-mm 'mango' tank shells, capable of penetrating a 600mm thick tank skin. This initiative is part of the company's efforts to enhance its capabilities and cater to the evolving needs of the defence sector. The production of these tank shells, licensed from Russian armament major Techmash, will be carried out at Munitions India's manufacturing unit in Tiruchi, Tamil Nadu. Collaboration with MSMEs and Economic Growth Munitions India's success also has a positive impact on the Indian economy. The company procured approximately ₹1,000 crore worth of materials from 2,000 Micro, Small, and Medium Enterprises (MSMEs) in the previous year. The production of the Mango tank shells alone is expected to require ₹150 crore worth of materials from MSMEs. This collaboration not only contributes to the growth of the defence sector but also boosts the overall development of the MSME ecosystem in India. The Way Forward With a robust order book and a promising outlook for defence exports, Munitions India is well-positioned to strengthen its foothold in the global market. As the Indian defence industry continues to grow and evolve, the country's self-reliance in defence production is expected to reach new heights. The surge in export orders for Munitions India underscores the recognition and trust placed in India's defence capabilities. The company's expansion plans and collaboration with MSMEs further contribute to the country's economic growth, making it a significant player in the global defence arena.

11 Mar 2024

Good News

Lenovo to Establish Local Server Production in India, Expanding Global Export Capabilities

Lenovo, the world's second-largest PC maker, has announced its intention to commence local production of servers in India. The company aims to leverage India's manufacturing potential and utilize the government's Production-Linked Incentive (PLI) scheme to strengthen its data center business and establish India as a global export hub. This move reflects Lenovo's commitment to meeting customer demands and optimizing supply chain logistics. Lenovo's Vision for India: Lenovo considers India a crucial international market and plans to utilize the country as a manufacturing hub for its PCs and smartphones. With three existing manufacturing sites in India, the company is expanding its capacity to cater to newer geographies and export its products worldwide. By leveraging India's manufacturing facilities, Lenovo aims to double its $10 billion data center business growth globally. Exploring Manufacturing Options: Lenovo's President of the Infrastructure Solutions Group, Vladimir Rozanovich, highlighted the significance of India as a manufacturing partner in the Asian market. The company is currently exploring options, including utilizing existing facilities or forming new manufacturing partnerships, to initiate local production of servers in India. The focus will be on manufacturing high-end GPU-related products to meet the increasing demand for data center solutions in the country. Import Management System and Local Sourcing: India recently implemented an import management system for IT hardware products, allowing companies to import laptops, tablets, all-in-one personal computers, and servers without restrictions for a year. This system provides companies that do not manufacture these products in India with sufficient time to develop local manufacturing capabilities. Lenovo intends to comply with this system and is ramping up its "localization" efforts by sourcing components for PCs and smartphones from local vendors. Lenovo's Commitment to Local Manufacturing: Amar Babu, President of Asia Pacific at Lenovo, emphasized the company's commitment to doubling the localization content for smartphones in the coming years. Lenovo is actively working with industry bodies and the government to develop the component ecosystem for PCs and laptops in India. By complying with India's preferential market access guidelines, which require 50 percent of components to be locally sourced, Lenovo aims to participate in government procurement and support the growth of local manufacturing. Growing Importance of India's PC Market: India's contribution to the global PC market has significantly increased in recent years, surpassing Japan in terms of total addressable market. Lenovo, holding a 17 percent market share, emerged as the second-largest PC maker in the July-September period of 2023. The company anticipates that the adoption of Artificial Intelligence-enabled PCs will further boost sales, particularly in the commercial and gaming PC segments. By leveraging the government's PLI scheme and expanding its manufacturing capacity, Lenovo aims to strengthen its data center business and establish India as a global export hub. Through local sourcing and compliance with preferential market access guidelines, Lenovo is actively contributing to the growth of the Indian PC market and fostering the development of the local component ecosystem.

12 Feb 2024

Good News

India Takes Giant Leap as an Exporter of Aviation Gas

In a first, India has taken a giant leap from being a net importer to an exporter of aviation gasoline, the fuel that fires unmanned aerial vehicles and small planes. So far, the only domestic manufacturer of the fuel, Indian Oil, began production last September at its Vadodara refinery with an annual capacity of 5,000 tonnes. Until then, the country was shipping in fuel from European refiners. In addition to helping save foreign currency, the indigenous production of the gas known as av gas 100 ll will also make training in domestic flying schools affordable for aspiring pilots. South America, Asia Pacific, West Asia, Africa, and Europe all have significant fuel needs, hence Indian Oil hopes to enter these markets after satisfying domestic demand. The fuel has been examined and approved by the Directorate General of Civil Aviation. Piston-engine aircraft used by flight schools and unmanned aerial vehicles are both propelled by aviation fuel. It is a higher-octane aviation gasoline that satisfies product requirements and offers superior performance and high-quality standards while being less expensive than imported grades. There are more than 35 flying schools in India that would profit from the fuel. According to the Chairman of Indian Oil, S M Vaidya, the global av gas market is projected to grow at 5% CAGR and the country's aviation traffic is also likely to grow at 7% CAGR. With superior performance, quality standards, and competitive prices, Indian Oil aims to secure a significant market share.

30 Jan 2023

Good News

As FIFA Progresses, Tamil Nadu Continues To Reap the Benefit of Eggsport

Did you know that Tamil Nadu, the land of beautiful temples also happens to be a major supplier of eggs? Namakkal district in Tamil Nadu and its surrounding area are home to over 700 of the state’s 1,100 chicken farms. With its daily production of roughly 60 million eggs, it supplies eggs to Kerala, Gujarat, Uttar Pradesh, Madhya Pradesh, and Bengal. Other than that, Namakkal also exports eggs to Gulf countries. Of late there has been an over two-fold increase in the export of eggs to Qatar owing to the increased demand for eggs as the country plays host to the FIFA World Cup. While egg prices increased globally in the wake of Russia’s invasion of Ukraine, Tamil Nadu continues to provide eggs at a reasonable price without compromising on the quality of eggs. According to K Singaraj, president of the Tamil Nadu Poultry Farmers' Association, the world cup has caused the demand for eggs to rise to 20 to 25 million per month from the usual 10 million during the past two months. The poultry farmers reported losses over the past two years as a result of Covid-19's crippling effects on exports. According to V Subramani, head of the Tamil Nadu Egg Poultry Farmers' Marketing Society, many farms had to shut down due to the soaring prices of raw materials. He lamented that eggs are still sold at Rs 5 despite our high manufacturing costs. The surge in the export of eggs will bring a smile to the faces of these hardworking poultry farmers.

5 Dec 2022

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Export of processed, value added spices increases making India a global hub

Earlier countries used to import whole spices from India, but gradually imports have shifted to ground and blended spices. Rabobank analyst Shiva Mudgil said that this is creating a shift from merchant export businesses to process manufacturing businesses. There is demand for products such as oleoresins and seasonings and this has prompted Indian players to focus on research and technology in order to manufacture innovative products. Rabobank's report 'Decoding the Spices' revealed that structural changes have taken place in the global spice market because of which India, a bulk commodity supplier of spices, is now becoming a global hub for exporting processed powdered and value-added spice products, such as oleoresins, oils, extracts and seasonings. The report stated that Indian export of spices have increased by 20 per cent and this trend will continue. To cater to the growing demand, domestic players are setting up processing infrastructure. They want to expand into untapped geographies and new product segments requiring greater need to access capital and product technology. It will be a great challenge to source good quality spices to meet the growing demand. According to a survey, India's estimated production of spices was 5.9 million tonne and 11.5% of total goes to exports. United Arab Emirates (UAE), the US, the EU and Malaysia are the key export markets. The major spices exported are chilli, cumin and turmeric.

4 Apr 2017

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India net exporter of electricity to its neighbours

The Central Electricity Authority (CEA) has stated that for the first time, India has become a net exporter of electricity during the April-February period. During this period, India exported around 5,798 Million Units to Nepal, Bangladesh and Myanmar which is 213 Million units more than the import of around 5,585 Million units from Bhutan. In the last three years, export to Nepal and Bangladesh increased 2.5 and 2.8 times respectively. The cross border trade of electricity had started in the mid eighties and since then, India used to import power from Bhutan to the tune of around 5,000-5,500 Million units. It has also been exporting 190 MW power to Nepal over 12 cross border interconnections at 11kV, 33kV and 132 kV level. India had also been exporting around 190 MW power to Nepal over 12 cross border interconnections at 11kV, 33kV and 132 kV level. With the commissioning of Muzaffarpur (India) - Dhalkhebar (Nepal) 400kV line (being operated at 132 kV) in 2016, the export power to Nepal has further increased by around 145 MW. In September 2013, the first cross border Interconnection between Baharampur in India and Bheramara in Bangladesh at 400kV was commissioned and this gave a boost to the export of power to Bangladesh. At present, around 600 MW power is being exported to Bangladesh. The power companies have also been able to boost their output due to a massive surge in the local supply of raw materials like coal in the past two years. There are plans to set up a few more cross border links with neighbouring countries which will help to further increase the export of power.

30 Mar 2017

Good News

West Bengal government to export fishes for the first time

For the first time, the West Bengal government has bagged huge orders worth Rs 900 crore to export fishes to countries like Dubai, Japan and China. This initiative taken up by the fisheries department of West Bengal will not only create a market for Bengal's fishes in the foreign countries but also help to uplift the financial condition of the state's fishermen. The department has plans to set up processing units with modern facilities at Nalban in Salt Lake and at Henry Island in South 24-Pargana to cater to the ongoing demand for fishes in the international markets. These units will help in the processing and packaging of the fishes that would be exported overseas. The department has decided to form self help groups comprising of unemployed rural youth and women. They would be encouraged to take up pisciculture and will be given training for the same. The state fisheries department will also be distributing fingerlings (very small fishes) to these self help groups free of cost. Though West Bengal is primarily dependent on agriculture, it is the leading producer of fishes in India. Thus, the venture will not only provide employment to the people of West Bengal, but will also boost the economy of the state.

29 Mar 2017

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