Category: Communications

With US President Donald Trump harping on import barriers like `reciprocal tariffs’ to protect factory jobs at home, Apple Inc has responded with a plan to invest $500 billion and create 20,000 jobs in America over the next four years. News reports suggest it will not bring iPhone making back onshore, but focus on churning out AI servers in the US. This move, announced after CEO Tim Cook met Trump in the Oval Office, echoes what Apple did during the latter’s earlier term, when it got tariff relief on iPhones shipped from China in lieu of local job creation. If a similar deal works out this time round, taut nerves would ease in India. As of now, however, a signature success of the Centre’s production linked incentive scheme is at threat. Thanks to this subsidy, local smartphone assemblers had joined global supply chains. This integration was led by Apple’s iPhone export thrust from India. In 2024, almost 1.1 trillion worth of these handsets were exported, a steep 42% rise that reflects an incline in both value addition and volumes. A hefty chunk of those shipments were to the US market, where Indian made devices had begun to rival the Chinese made.

With even new models being assembled here, this export boom has also been advertising `Made in India’ as a top end label. But then, Trump won the White House and put the idea of tariff reciprocity on his trade agenda.

Should a trade policy reset by America impact manufacturers in India, among the hard hit might be Samsung, Chinese players with local factories and Apple’s trio of phone makers: Foxconn’s Indian business, Tata Electronics and Pegatron’s local unit, in which Tata took a 60% stake recently. Admittedly, it is only a guess how Trump’s game of barriers will unfold. On current signs, he may impose tariffs to mirror ours on a bilateral basis, as reciprocity implies. This means India’s 16.5% import duty on smartphones would invite the US to charge the same on Indian shipments there. A raised barrier could go even higher in a bizarre but plausible scenario: if our GST gets counted too.

Either way, our US bound exports stand to get squeezed. Granted, this squeeze might be mild if China made devices face even steeper tariffs and American buyers prove price insensitive.

But we cannot count on blow softeners.

Indian import duties on some smartphone inputs are to be cut, as India’s latest budget outlined, but in case US tariff reciprocity kicks in, we should consider a big duty cut on the assembled product. Since this barrier’s strategic aim was to shield domestic assembly from import competition, we stare at a trade-off. Abroad duty cut, as trade rules demand, could expose our market to a Chinese influx again, hurting local assemblers. But then, these businesses have achieved scale and should’ve used it to sharpen a cost edge. Crucially, the import risk they’d face must be weighed against the need of low barrier access to the US to sustain a boom.

We must also factor in the consumer benefit of cheaper handsets that a duty cut will yield. Plus, it would align with the logic of free trade. A protectionist policy ought to serve as an industry incubator at most. Beyond a point, producers should be exposed to global rivalry, pushing them to raise their game. While Cook might yet be able to swing an iPhone carveout, our best bet may well be to play for US market access. A free trade pact could ease our path, but that’ll take long. And we must abide by trade rules. LiveMint

As US President Donald Trump’s reciprocal tariff threat looms for exports of engineering goods and pharmaceuticals to textiles, India’s booming electronics goods shipments may be at least risk.

The duty disparity or the gap between import levies is one of the lowest for electronics among major categories, according to two people aware of the matter, who spoke on the condition of anonymity.

Commerce ministry data shows India’s electronics exports to the US face an average tariff of 0.41%, while US shipments under the same category face a duty of 7.64%, resulting in a gap of 7.23%. That’s far lower than 13% for diamonds and gold items, and 32% for meat and processed farm products.

The US tech giant Apple Inc, which began manufacturing in India in 2017, has been the biggest contributor to India’s electronics exports to the US in recent years. “This could influence the US’s approach to tariff adjustments on Indian electronic goods,” the people said, stressing that any duty hike would also impact American firms.

India’s shipments of mobile phones and electronic components to medical devices to the US have surged from about $986.22 million in FY18 to $10.05 billion in FY24, the commerce ministry data showed. These accounted for about 35% of total exports of the industry in the last fiscal.

The US market also presents a huge opportunity. Of the $4 trillion global electronics trade every year, the US alone imports nearly $700 billion worth of such goods.

“Given this dependence, India cannot achieve the Prime Minister’s $500 billion electronics manufacturing vision without deep integration into the US market,” said Ronak Pol, team lead at Foundation for Economic Development, a policy advocacy firm.

Moreover, India’s high tariffs were used as a strategic tool to protect domestic industry, but they now exceed those in competing hubs like China, Vietnam, Thailand, and Mexico, said Pol. “A reciprocal tariff response from the US could erode India’s competitiveness, disrupt supply chain shifts, and deter future investments.”

Queries sent on Monday to the spokespersons of the ministries of commerce, external affairs, US Embassy and Apple remained unanswered till press time.

Ajay Srivastava, a former commerce ministry official and founder of the Global Trade Research Initiative (GTRI), said, “Trump’s reciprocal tax plan goes against the WTO’s Most Favoured Nation (MFN) principle, which requires countries to apply the same tariff to all trading partners unless a free trade agreement (FTA) is in place. The US reciprocal tariff plan breaks this rule.”

The Indian government, however, hopes the electronics sector will not be included in the reciprocal tariff as the US “benefits significantly from exports of electronic goods, including smartphones”, said the first of the two people quoted earlier.

The second person said India is engaging with the US “as a friendly partner, we expect a positive outcome across all sectors”.

India has already reduced the basic customs duty on carrier-grade Ethernet switches from 20% to 10%, aligning it with the duty on non-carrier-grade Ethernet switches.

This reduction is expected to benefit US exporters, who supplied $653.4 million worth of these products to India in the last fiscal year. The tariff on synthetic flavouring essences dropped from 100% to 20%, benefitting $21 million in US exports.

The NDA government, led by Prime Minister Narendra Modi, has set an ambitious goal of achieving $500 billion in electronics exports by 2030. Commerce minister Piyush Goyal urged the industry on Monday (24 February) to aim for $100 billion in electronics exports in the next five to seven years.

Till January in FY25, the sector’s overseas shipments have already surpassed the previous financial year’s total of $29.11 billion, reaching $30.21 billion.

Besides the US, India exports electronics goods to the UAE, the Netherlands, the UK, Italy, Czech Republic, Austria, Germany, Russia, China, France, Japan and Hong Kong. LiveMint

The Indian electronics and electrical industry should look at increasing exports to $100 billion over the next 5-7 years, Commerce and Industry Minister Piyush Goyal said.

The export volume of electronic goods ranks second in the country against 167th in 2015. In January, the export volume of electronic goods was $3 billion.

Look at increasing exports to ” $100 billion in the next 5-7 years”, he said at the 16th Edition of ELECRAMA, organised by the Indian Electrical And Electronics Manufacturer’s Association (IEEMA) here.

The minister also said India’s electronic goods industry must work together towards more resilient supply chains, upgrade quality standards and provide high-quality goods and services to the world at competitive rates.

He urged the participants to work together to bring competitive advantages to the manufacturing sector.

The minister stressed that the industry has a responsibility to ensure that consumers are provided better deals.

He urged the industry leaders and participants to shun protectionism and focus on balancing the interests of the industry, particularly the MSME sector.

Protectionism beyond a point starts hurting the consumer, Goyal said, adding that balancing the interests of the MSME sector, along with the customers, should be the industry’s biggest priority. PTI

The Supreme Court refused to entertain a plea seeking regulation of Internet prices in the country.

A bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar dismissed the plea filed by one Rajat, saying consumers had multiple options for availing of Internet services.

“It’s a free market. There are several options. BSNL and MTNL are also giving you Internet,” the bench observed.

The petitioner alleged that the majority of the market share was controlled by Jio and Reliance.

The bench then said,”If you are alleging cartelisation, then go to the Competition Commission of India.” The top court, however, clarified that if the petitioner wanted to take any recourse to appropriate statutory remedy, he was at liberty to do so. PTI

Maharashtra is positioning itself to become India’s artificial intelligence (AI) capital, building on its existing status as the country’s data center and fintech hub, Chief Minister Devendra Fadnavis said at Nasscom 2025.

The state, which currently hosts 60 per cent of India’s data center capacity in and around Navi Mumbai, recently secured AI and data center investments worth $20 billion at Davos. “We have created a new data center park around Navi Mumbai. And a lot of investments around data center are coming,” Fadnavis said during a fireside chat with Srikanth Velamakanni, cofounder and group CEO of Fractal.

To support the growing data center infrastructure, Maharashtra plans to increase its power generation capacity from the current 45 gigawatts to 75 gigawatts by 2030, with 52 per cent coming from renewable sources. “Initially, we want to give a mixed type of green and conventional power to the data center. But somehow, in future, we feel that all this power should be green power,” the Chief Minister explained.

The state has established an AI mission and formed a committee of business leaders to develop a new AI policy. “The terms of reference is to make Maharashtra leader in AI,” Fadnavis stated. The government is already training 10,000 women in AI in partnership with Microsoft.

Maharashtra is also emerging as India’s startup capital, with approximately 20,000 startups, leading in both absolute numbers and investment. About 35 per cent of these startups operate in the fintech space, reinforcing Mumbai’s position as the fintech hub.

The state is actively developing Global Capability Centers (GCCs), with plans to create dedicated ecosystems in Mumbai, Pune, Nagpur, Sambhajnagar, and Nashik. “We are creating a GCC park in Navi Mumbai, which will host many GCCs. There are four or five which we are in active talks and mostly will close,” Fadnavis revealed.

A new innovation city spanning 300 acres is being planned in Navi Mumbai. “We want to host everything and anything in terms of technology, innovation and AI in this city,” the Chief Minister said, adding that Tata Group Chairman N. Chandrasekaran is helping develop the framework.

In agriculture, Maharashtra is implementing the AgriStack program for end-to-end digitization of farming cycles. “It is about digitization of the farmlands, farm produce, market access, every single thing,” Fadnavis explained. The state has also digitized multi-purpose societies in villages to enhance farmer financing and market connectivity.

Looking ahead to the 2027 Nashik Kumbh, the state plans to leverage technology for crowd management and administration. “This will be technologically most advanced Kumbh… People, even those who just cannot go and bathe in the holy water will get the experience of having bathed in the holy water,” Fadnavis said, while emphasizing that the sanctity of the event will remain unchanged.

The state’s broader economic vision includes becoming India’s first trillion-dollar subnational economy. The Mumbai Metropolitan Region alone has the potential to achieve a $1.5 trillion economy, according to a roadmap developed with NITI Aayog. “If we work properly, the MMR region itself can become a 1.5 trillion dollar economy,” Fadnavis stated. The Hindu BusinessLine

During his monthly ‘Mann Ki Baat’ address on Sunday, Prime Minister Narendra Modi laid a specific emphasis on Artificial Intelligence by recalling his visit to Paris to co-chair the AI Action Summit with French President Emmanuel Macron, adding that Indians are “second to none” in using new technologies.

“Recently, I visited Paris to participate in a big AI conference. There, the world greatly appreciated India’s progress in this sector. We can also see examples of how the people of our country are using AI in different ways today.”

While addressing the AI Action Summit on February 11, PM Modi made a strong case for collective global efforts to establish governance and standards for artificial intelligence to uphold shared values and address risks.

The prime minister further said that AI is writing the code for humanity in this century and said it can transform millions of lives by promoting health, agriculture and lives.

PM Modi lauds teacher for preserving tribal languages via AI
Prime Minister Modi also highlighted the example of Thodasam Kailash, a government schoolteacher in Telangana’s Adilabad, who has been trying to preserve tribal languages with the help of artificial intelligence.

“His interest in digital song and music is helping us preserve our tribal languages. He has done a great job by composing a song in the Kolami language by using AI tools. He is using AI to create songs in many languages other than Kolami. His tracks are being liked a lot by our tribal brothers and sisters on social media,” PM Modi said in his address.

The PM asserted that the increasing participation of the youth in the space sector and AI has brought in a new revolution. “People of India are second to none in adopting and using new technologies,” he said further.

During his ‘Mann Ki Baat’ address, PM Modi also touched upon other issues such as India’s progress in the space sector with ISRO’s 100th launch, as well as participation of women in nation-building, physical fitness and dealing with obesity. News18

Vodafone Deutschland’s ambitious plan to expand Germany’s fibre-optic infrastructure is facing a major hurdle as its key partner, Altice, considers selling its stake in their joint venture OXG.

The potential exit could impact Vodafone’s strategy to connect seven million households with high-speed broadband over the next seven years.

Altice has begun exploring potential buyers for its share in OXG, reports German newspaper Handelsblatt with reference to sources familiar with the negotiations.

Vodafone has not confirmed the reports, when approached by the newspaper, but stated that any sale would require its approval. A company spokesperson emphasized that OXG remains financially stable, with a credit line of €4.6 billion ensuring investment continuity over the next six years. The spokesperson added that Vodafone has already begun fibre-optic deployments in 21 cities, though this falls short of the original target of 150 cities and municipalities by the end of 2024.

If Altice proceeds with its exit, Vodafone could face further disruptions. Altice’s reputation has been tarnished by corruption and money laundering allegations involving several top executives, leading the company to divest multiple assets, according to the report. However, finding a buyer for its stake in OXG may prove challenging. Industry insiders suggest that rising interest rates and increasing construction costs have made fibre-optic investments less attractive.

A recent study by consultancy firm AlixPartners predicts that within the next two years, around two-thirds of fibre-optic projects in Germany will require fresh financing.

In this uncertain landscape, the potential withdrawal of Altice poses a significant risk for Vodafone’s fibre strategy. For Vodafone Deutschland CEO Marcel de Groot, maintaining the company’s competitive position in the broadband sector will require decisive action to navigate the looming industry shake-up. Broad Band TV News

Bharti Airtel is set to merge its DTH business, Airtel Digital TV, with Tata Play in a share swap deal, according to a report by The Economic Times. Airtel will hold a majority stake of 52-55 per cent, while Tata Play’s shareholders, including Tata Sons and Walt Disney, will keep 45-48 per cent. The deal is expected to help Airtel grow its broadband and entertainment business by bundling telecom, broadband, and DTH services.

The news of this merger comes amid Reliance and Disney’s Star India-Viacom18 merger, forming JioStar, India’s largest media company. If the merger goes through it will also be the biggest in India’s DTH sector since Dish TV’s merger with Videocon d2h in 2016.

Airtel Digital TV, housed under Bharti Telemedia, will gain access to Tata Play’s 19 million homes and half a million broadband customers. The combined entity had 35 million paid subscribers and FY24 revenues exceeding Rs 7,000 crore. The deal values both operations at Rs 6,000-7,000 crore each.

Telecom and tv industry trends
The pay-TV market has been facing a steady decline, with the subscriber base falling from 120 million to 84 million homes in recent years. According to the Telecom Regulatory Authority of India (TRAI), the number of DTH users has dropped to 60 million in financial year 2023-24 (FY24) from 70 million in FY21, signalling a clear shift in consumer preferences and a shrinking market for traditional pay-TV services.

Telecom operators, on the other hand, are well-positioned to benefit from the growing trend of OTT (over-the-top) content aggregation. They are better equipped to offer OTT services as part of their broader telecom and broadband packages. Meanwhile, DTH players, including Tata Play, are increasingly expanding their digital services to retain customers by adapting to the changing landscape of media consumption.

Both Bharti Telemedia and Tata Play are also dealing with significant regulatory hurdles. The two companies face pending license fee disputes with the government, with Bharti Telemedia’s dues amounting to Rs 5,580 crore and Tata Play’s amounting to Rs 3,628 crore. These ongoing disputes add an element of uncertainty to the merger and the overall financial outlook for the companies involved.

Tata Play, once valued at $3 billion before the pandemic, has seen its worth significantly drop to $1 billion. The company’s financial struggles, combined with mounting losses and a lack of plans for an initial public offering (IPO), have put it in a difficult position. In this context, the merger with Bharti Airtel provides a fresh opportunity for Tata Play to revitalise its business and explore new growth avenues.

Due diligence for the merger is expected to begin soon, and if everything proceeds as planned, the deal has the potential to reshape India’s TV and broadband market. By combining their strengths, the two companies can better compete in the increasingly competitive and evolving media and telecommunications sectors, offering integrated services that could meet the needs of a growing consumer base. Business Standard

US House Judiciary Chair Jim Jordan demanded EU antitrust chief Teresa Ribera clarify how she enforces the European Union’s rules reining in Big Tech, saying they appear to target US companies.

The request came two days after US President Donald Trump signed a memorandum warning that his administration would scrutinise the EU’s Digital Markets Act and the Digital Services Act “that dictate how American companies interact with consumers in the European Union”.

The Digital Markets Act sets out a list of dos and don’ts for Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta Platforms, Microsoft, aimed at securing a level playing field and giving consumers more choices.

“We write to express our concerns that the DMA may target American companies,” Jordan wrote in a letter sent to Ribera on Sunday and seen by Reuters, saying that the rules subject companies to burdensome regulations and give European companies an advantage.

He criticised fines up to 10% of global annual revenues for DMA violations.

“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide, and as a European tax on American companies,” Jordan said.

He also took a swipe at the DMA requirements, saying some of them could benefit China.

“These, along with other provisions of the DMA, stifle innovation, disincentivize research and development, and hand vast amounts of highly valuable proprietary data to companies and adversarial nations,” Jordan said.

He urged Ribera to brief the judiciary committee by March 10.

The European Commission, where Ribera is the second most powerful official after its president, Ursula von der Leyen, has denied taking aim at American companies.

Ribera in an interview with Reuters last Monday said the EU executive should not be pushed into making changes to laws that have been approved by lawmakers. Reuters

Apple pulled off a rare feat in China two years ago. The iPhone became the country’s bestselling smartphone, surpassing a host of domestic rivals.

But that reign is over—a casualty, in part, of the escalating US-China technology Cold War.

Apple has fallen from first to third in the country, dethroned by two Chinese companies, Vivo and Huawei, that offered similar features at lower costs as China’s economy slumped.

Now Apple has a new offering in the world’s biggest smartphone market. Deliveries of its iPhone 16e, a cheaper version of its flagship device, will begin in China this week at a starting price of about $600. That makes it eligible for a national stimulus program that gives consumers a subsidy for purchasing smartphones under $800.

The new device gives Apple a chance to get more competitive in China, but its challenges there go beyond the economy.

While Apple’s newest offering is aimed at thriftier consumers, its Chinese rivals are becoming more sophisticated. On Tuesday in Kuala Lumpur, Huawei announced an international version of its double-folding Mate XTsmartphone. The $3,700 device can transform into a 10-inch tablet, with two creases that are noticeable but not overly pronounced.

There is also a less-visible force at play: The Chinese government is giving local companies a helping hand.

Chinese smartphone makers have already released popular artificial-intelligence features, but China hasn’t yet approved AIfor iPhones . And Beijing has more directly supported Huawei in particular.

Apple was an unlikely smartphone champion in China. It trailed Chinese brands for years, before getting an assist from Washington.

Around five years ago, the US government imposed sanctions that made it hard for Huawei to buy components essential to making competitive phones. Washington was concerned Huawei would use its smartphone revenue to bolster other businesses, such as cellular-network infrastructure and computer chips.

As a result, Huawei—which had briefly risen to be a global smartphone leader—saw sales plummet in its home market, China. That downturn benefited Apple, which in 2023 led the Chinese market with a 17.4% share, according to International Data Corporation.

But last year, Apple slipped to 15.5%, falling behind Vivo’s 17.2% and Huawei’s 16.6%.

One reason is China’s economic slowdown has people considering cheaper options, said IDCanalyst Will Wong. He said the average selling price of smartphones from Vivo, Huawei and Apple last year was respectively $298, $658 and $1,007.

While Chinese smartphone makers have already released AIfeatures, such as image-editing tools or instantaneous language translation, Chinese regulators haven’t yet allowed Apple to do the same with its AIfeatures, called Apple Intelligence.

In China, AImodels need government approval before companies can offer them for public use. Apple’s global partner, OpenAI, doesn’t operate in China. Instead, Apple is working with Chinese tech giants Alibaba and Baidu with the aim of having its AIfeatures approved later this year, people familiar with the matter said.

Apple Chief Executive Tim Cook said in a January earnings call that markets where Apple Intelligence was available on the iPhone 16 had a stronger year-over-year performance versus places where those services weren’t available.

China has propped up Huawei amid the US sanctions, funneling billions of dollars to it in the form of preferential buying contracts and subsidies from organizations connected with the Chinese government or its ruling Communist Party.

Those deals have helped Huawei overcome its handicaps. It developed its own phone operating system after US sanctions made it hard for Huawei to keep using Google’s Android. And though export controls mean Huawei smartphones must run on less-advanced chips, which would normally result in slower performance and worse battery life, Huawei found a workaround.

“They’ve been able to, through design ingenuity, overcome the export controls,” said G. Dan Hutcheson , vice chairman of TechInsights, a research firm. It studied Huawei’s new double-folding phone by disassembling it. Hutcheson said Huawei compensated for the chip handicap with software that squeezed the most out of the hardware.

Combined with improving its supply-chain snags toproduce more midrange phones, IDCanalyst Wong said, Huawei sold 50% more smartphones last year compared with 2023, while Apple fell 5%.

“Innovation is how Huawei gained market share in China,” said Alex Huang, chief marketing officer of Huawei’s consumer business. “Even if we have some difficulties because of the US sanctions, every year in the consumer business group, we keep on investing in research and development.” LiveMint