India’s factory activity substantially expanded in the first quarter, especially in April, driven by solid growth in new orders and output. The manufacturing PMI rose to 57.2 in April from the previous month’s 56.4.
According to the latest United Nations report, India surpassed China as the world’s most populous nation. Presently, the country’s population is about 1.43 billion. As much as 68% of the population is between the ages of 15 and 65, and 26% is in the 10-24 age group, making India one of the youngest countries in the world.
The younger population offers a burgeoning base of consumers, which is attracting a lot of investment from Western companies. India has made trade agreements with Australia, the United Arab Emirates, and Mauritius and is already in discussions with several European nations like France, Germany, Italy, and the U.K. to bolster investments and business relationships. According to the latest IMF report, the economy will likely grow by 5.9% in the current fiscal year. If growth momentum is sustained, India will displace Germany to become the fourth-largest economy by 2027.
Apple’s India sales hit a new record of $6 billion as Apple CEO Tim Cook began a retail push by opening Apple’s first two retail stores in the country. Apple also plans to triple its investment in and exports from the country in the coming years.
In April, the government approved the National Medical Devices Policy 2023 to increase domestic production and reduce imports of such equipment. A total of 26 projects have been approved under the Production-Linked Incentive scheme, with a committed investment of $148 million and the establishment of four medical parks in Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh.
Passenger vehicle exports from India rose 15% in fiscal year 2023, with Maruti-Suzuki India leading the segment with over 250,000 units dispatched. Total car exports stood at 663,000 units in FY 2022-23, compared to 577,000 units the previous year. According to Bloomberg data, India’s largest car manufacturer, Maruti- Suzuki, became the first car company in India to cross the $12 billion revenue mark. The company plans to set up a new plant with a capacity to produce 1 million units per year with an investment of around $3.5 billion. As per the JATO dynamics, 54 new models with full-model changes, facelifts, or new platforms will be launched by various car manufacturing companies in India during FY 2023-24.
A few recently announced projects and investment news items are listed below for your reference. Kindly reach out to learn more about these listed projects.
Taiwanese company Gogoro plans to make India its global manufacturing base for electric two-wheelers.
The Volkswagen Group committed to new investments for capacity expansion as well as to manufacture electric vehicles in India. Their first EV, ID.4, is scheduled to be launched in 2024. Initially, the vehicle will be assembled from imported parts and components at the group’s manufacturing facility in Aurangabad, Maharashtra. Afterwards, the company will localize it to great extent before launching it in the mainstream market by the end of 2025.
Mahindra & Mahindra has commenced work on its $121 million EV manufacturing unit in Telangana.
Texmaco Rail & Engineering formed a joint venture with Czech Republic-based Nymwag to set up a facility for manufacturing freight cars and parts for railway wagons. The facility will be set up at Sodepur in Kolkata.
Micron Technology is in the process of getting approval for setting up a $1 billion assembly, testing, marking, and packaging (ATMP) facility for semiconductors.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.