📱 Reducing electronics imports

Good morning and Happy Friyay. Hope you all have a great weekend when it arrives 💫 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 📱 Reducing electronics imports

• 💰️ India’s Semiconductor industry needs more VC support

• 🗞️ Bite-sized summaries

  • 🔌 BYD vs. Tesla: The battle for India’s EV market

  • 🎨 OpenAI caps AI image requests amid GPU strain

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets rebounded despite global weakness. Banking and broader market stocks supported the rally, while auto stocks faced pressure due to US tariff concerns. Foreign investors continued their buying streak for the fifth consecutive session.

🌍️ International

• US stocks fell for the second consecutive day as President Trump's auto tariffs weighed on sentiment. Auto stocks led the losses, with General Motors falling 7% and Ford dropping 3%.

FINANCE

📱 Reducing electronics imports

India’s dependence on imported electronic components is a significant challenge, especially in critical sectors like space technology. ISRO Chairman V Narayanan recently emphasized the urgent need to slash electronics imports to under 10% within the next five years.

Speaking at the Nano Electronics Roadshow at IISc Bengaluru, he urged the Ministry of Electronics and Information Technology (MeitY) to create a roadmap for boosting domestic manufacturing.

Why does this matter for India:

• India has made remarkable strides in indigenous technology, with 90% of launch vehicle components now produced locally.

• However, electronics still make up the bulk of imports, accounting for nearly 90% of the remaining foreign-sourced materials.

• This reliance poses economic and strategic risks, making the push for self-sufficiency more critical than ever.

Narayanan highlighted his own experience at ISRO’s Liquid Propulsion Systems Centre, where only two out of 34 key sensors were domestically produced. Through policy intervention, ISRO successfully transitioned to manufacturing 32 of these sensors locally, proving that self-reliance is achievable with the right initiatives.

Reducing imports will not only strengthen India’s manufacturing sector but also boost employment, innovation, and technological sovereignty. Relying on foreign suppliers, especially in sensitive sectors like space and defense, creates vulnerabilities that can impact national security and economic stability. Developing a robust domestic electronics ecosystem will position India as a global leader in advanced technology.

Looking ahead: Narayanan stressed the importance of continued investments in nanotechnology, which plays a crucial role in space applications. A strong domestic electronics industry will ensure that India’s space and technology sectors remain competitive on the global stage.

With the right policies, incentives, and industry support, India has the potential to drastically cut electronic imports and build a thriving indigenous manufacturing ecosystem. The time to act is now.

Read more: Economic Times

LOANS

💰️ India’s Semiconductor industry needs more VC support

As India strives to establish itself as a global player in the semiconductor ecosystem, industry leaders emphasize the urgent need for increased venture capital (VC) backing. Speaking at the Nano Electronics Roadshow at IISc Bengaluru, Tata Electronics SVP Utpal Shah and Micron India MD Anand Ramamoorthy highlighted key challenges and opportunities in the sector.

Where’s the gap?

• India’s semiconductor startups are eager to leverage government incentives like the Design Linked Incentive (DLI) scheme.

• However, while manufacturing support exists through FAB and OSAT infrastructure, startups require significant VC investments to scale and innovate.

• Unlike traditional startups, semiconductor firms face longer development cycles and higher capital requirements, making early-stage funding crucial.

Ramamoorthy noted that semiconductor startups operate in an unpredictable market, where the relevance of a chip design can shift drastically within two years. To ensure these startups succeed, DLI 2.0 must integrate industry problem statements to encourage solutions for foundational challenges.

With India aiming to launch its first homegrown semiconductor chip by the end of 2025, industry leaders stress the importance of AI in silicon design. AI-driven automation can revolutionize chip development, reducing the 24-month timeline for a working silicon prototype. This is a largely untapped opportunity where India could emerge as a leader.

Strengthening Talent and Intellectual Property:

• To build a sustainable semiconductor industry, India must nurture a robust talent pipeline. Encouragingly, experienced professionals are returning from Taiwan, Singapore, and Malaysia.

• However, experts argue that better immigration policies are needed to attract global talent.

• Additionally, MeitY Secretary S Krishnan emphasized the importance of developing India’s own fabless companies and strengthening intellectual property (IP) rights.

Overall: A strong semiconductor industry is vital for India’s technological independence, economic growth, and leadership in emerging fields like AI and IoT. With strategic investments, policy enhancements, and a focus on talent, India can transform from a semiconductor consumer to a global innovation hub.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🔌 BYD vs. Tesla: The battle for India’s EV market - Tesla is finally entering India, but its journey won't be easy. The American EV giant faces strong competition from homegrown players like Tata and Mahindra, as well as Chinese rival BYD. Reports suggest BYD may set up a manufacturing plant in Telangana, making it an even bigger threat to Tesla in India's price-sensitive market. BYD’s affordable, high-efficiency EVs have already outpaced Tesla in China. If it begins local production in India, Tesla’s market prospects could shrink further. With India’s EV industry rapidly growing, Tesla will need aggressive pricing and strategy to compete effectively.

🎨 OpenAI caps AI image requests amid GPU strain - OpenAI is temporarily limiting image generation requests due to high GPU usage, CEO Sam Altman revealed. Free-tier users of ChatGPT will be restricted to three images per day while the company works on optimizing performance. The surge in demand, particularly for “Ghibli-style” AI images, has put immense strain on GPU resources, leading to overheating and processing delays. Altman assured users that this is a temporary measure, with fixes underway. Some image requests are also being mistakenly rejected, an issue OpenAI is actively addressing. For now, AI-generated visuals will be a bit harder to come by!

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Mother Dairy to Amul: Brands rush to quick commerce ahead of summer heatwave.

• Six dead after tourist submarine sinks in Red Sea.

• It's natural: Natural diamond prices surge 10% amid rising demand.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Renee Zellweger joins the cast of Only Murders In The Building Season 5.

• Jennifer Salke exits Amazon MGM Studios to produce.

• IPL 2025: LSG beat SRH by 5 wickets. Leaderboard here.

• Tennis: Filipina teenager Alexandra Eala beats third Grand Slam champion in a week.