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India's own Foxconn? Dixon's PLI-powered roadmap could reshape electronics
Surajeet Das Gupta New Delhi
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Dixon Technologies has earned a rare distinction: it is the only Indian company ranked among the top 20 global electronic manufacturing services (EMS) players by revenue in 2024, according to research agency Manufacturing Market Insider. In a league dominated by heavyweights like Foxconn, Pegatron, and Luxshare, Dixon's presence is a significant achievement for a homegrown brand.
Still, the scale difference is stark. Dixon's 2024-25 (FY25) revenues, at ₹38,860 crore, are just a quarter of
Foxconn's revenues from India alone (₹1.72 trillion), thanks largely to Apple Inc, which remains the dominant force in the Indian EMS landscape.
Yet, Dixon has set its
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Indian Express
26 minutes ago
- Indian Express
India-UK FTA: Import of Britain-made luxury cars to get cheaper
Luxury cars made in the United Kingdom will become cheaper in India, with the India-UK Comprehensive Economic and Trade Agreement (CETA) introducing tariff-rate quotas (TRQ) for passenger cars and trucks, which will allow automakers to export vehicles at reduced tariffs, limited by quotas. Under the agreement, tariffs on imports of internal combustion engine (ICE) cars will be slashed to 30-50 per cent in the first year of implementation, with the benefit limited to a quota of 20,000 cars. The tariffs will be reduced gradually, and after 15 years, they will become 10 per cent, with the quota set at 15,000 units. For out-of-quota imports of ICE cars, the duties are reduced to 60-95 per cent in the first year, and further to 45-50 per cent from the tenth year onwards. Currently, India's import tariffs on passenger vehicles range from 70-110 per cent while those on trucks stand at 40 per cent. Industry executives said that import quotas have been implemented to avoid sudden surges in imports and safeguard the Indian auto industry. This reduction, ranging from 16 per cent to 56 per cent over a period up to 5 years on ICE vehicles up to 2500 cc (diesel)/3000 cc (petrol) and 80 per cent to 100 per cent over a period of 5 years on ICE vehicles more than 2500 cc (diesel)/3000 cc (petrol), is expected to make high-end vehicles more accessible. For electric vehicles (EVs), hybrids, and hydrogen fuel-based cars, tariffs have been eliminated entirely for units priced under £40,000 CIF (cost, insurance and freight value). For zero-emission cars priced between £40,000 to £80,000, tariffs are reduced to 50 per cent and a quota of 400, which from the fifteenth year will become 10 per cent and 2,000 respectively. For more expensive zero-emission cars (above £80,000), duties will start at 40 per cent with a quote of 4,000 units, which from the fifteenth year will become 10 per cent and 20,000 respectively. The new tariff rates are likely to benefit automakers such as Jaguar Land Rover. It is worth noting that the agreement does not provide for reduced out-of-quota duties on zero-emission vehicles, a decision that will provide some relief to domestic EV and hybrid players. In 2024-25, India's car imports from the UK fell by 46 per cent to $72 million from $134 million in 2023-24. For ICE trucks, the tariffs are slashed to 37 per cent for the first year, with a quota of 2,500. From the tenth year onwards, tariffs drop further to 8.8 per cent, with the quota set at 3,500. The agreement does not reduce duties for electric or hydrogen-based trucks. 'The substantial reduction of import duties to 10 per cent in 5 years for UK cars represents one of the most significant outcomes of the FTA and is poised to transform the car market in India, particularly for Completely Built Units (CBUs) due to the drastic duty cut. However, it is crucial that the cars meet the originating criteria of 35 per cent of Qualifying Value Content ('QVC') i.e. the material of UK origin is 35 per cent of total material used,' said Saurabh Agarwal, partner and automotive tax leader at EY India. He added that since the reduced duty benefits apply to all automobiles manufactured in factories located in the UK, non-UK carmakers may consider establishing factories in the UK to take advantage of the reduced rates and maintain their market share in India. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
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Business Standard
26 minutes ago
- Business Standard
'UK is back on world stage': Keir Starmer after trade deal with India
The trade deal comes at a time when US President Donald Trump's tariff policies continue to disrupt global trade Bloomberg The UK has restored its international standing after years of 'performative' politics under successive Conservative governments, Labour Prime Minister Keir Starmer said in an interview after sealing a long-sought trade deal with India on Thursday. The trade deal — the biggest struck by Britain since Brexit — will cut the vast majority of India's tariff lines for the UK, helping exports from Scotch whisky to cars. But speaking at his Chequers country retreat after meeting with Indian Premier Narendra Modi, Starmer said the agreement didn't mark the limit of the UK's ambition, and would provide a baseline of cooperation to build on for the two countries. 'We have re-established the place and position of the UK on the world stage,' Starmer told Bloomberg in his only interview with a major publication to mark crystallisation of the pact, referring also to increased cooperation with the European Union and a trade pact with the US. Now, 'we're seen as a country which other countries want to be working with and delivering with.' The deal signed earlier Thursday by the Indian and British trade ministers eliminated or reduced a swath of tariffs and lifted other barriers to commerce. The pact came after three years of intense negotiations touching on thorny topics such as visas, and tax breaks. The two nations concluded talks in May, completing Britain's biggest trade deal since Brexit and India's most significant such agreement to date. 'This isn't merely paving the way for economic partnership but is also a blueprint for our shared prosperity,' Modi said earlier Thursday, speaking alongside Starmer at Chequers. In an interview with Bloomberg on Thursday evening, Modi's trade minister, Piyush Goyal, said the deal will 'open the doors for more robust and resilient supply chains,' as well as encouraging 'greater investments because of the stable and predictable business environment.' 'It's a win win for both UK and India,' he said. A separate bilateral investment treaty is still being negotiated between the UK and India, which could include more controversial elements such as a provision which allows investors to sue either government if they believe a policy change has unfairly affected their profits. 'I do hope we will get that also across the hump soon,' Goyal said of the treaty, declining to discuss the sticking points. The trade deal comes at a time when US President Donald Trump's tariff policies continue to disrupt global trade, and Starmer told Bloomberg that it marked 'a real statement of intent as to how close we want our two countries to be as we go forward in an uncertain world.' He added that he and Modi had already begun to discuss which areas they could build on. Starmer, whose Labour Party was elected to power a year ago, also made a jibe at his Tory predecessors Boris Johnson and Rishi Sunak — both of whom set and missed their own deadlines for agreeing a deal with India, with the former famously promising one by Diwali 2022. 'Serious, pragmatic, respectful diplomacy trumps performative politics any day of the week,' Starmer said. He added that the 'quiet, serious, pragmatic, respectful way' in which he had asked officials to proceed 'achieved results compared with the noisy performance of my predecessors.' Starmer and Modi earlier attended a showcase of businesses who hoped to benefit from the trade deal. Representatives from firms including the supermarket chain Sainsbury's and family-run Spice Kitchen staffed stands under a marquee in the Chequers rose garden, and said they were excited about the opportunities for further cooperation between the UK and India. 'We import a lot from India,' said Spice Kitchen's Sanjay Aggarwal, who runs the business with his mother Shashi. 'Hopefully some of our costs will come down.' Starmer had said he 'loves to cook and loves Indian food,' Aggarwal added. For Modi, the deal reinforces his push to position India as a viable alternative for global supply chains looking to diversify. The pact — India's first major one in a decade — signals that the South Asian nation is willing to lower its barriers to attract investments as it negotiates a bilateral trade deal with the US. It will also act as a springboard for India's ongoing talks with European Union. For Starmer, the deal will be a welcome step toward his goal of boosting economic growth in the UK. While it is expected to add £4.8 billion ($6.5 billion) to the UK's annual economic output — a tiny increase to the size of the economy — Starmer's Labour government hopes successive incremental wins will help encourage investment and turn around lackluster business sentiment. With Trump due to arrive in Scotland on Friday for a personal visit during which he'll meet with Starmer, the signing comes as Britain works to flesh out the trade pact it agreed with the US. Meanwhile the New Delhi administration is racing to clinch a deal with Washington before Aug. 1, when higher tariffs are due to kick in. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
26 minutes ago
- Business Standard
India, UK dismantle trade walls with landmark deal amid global tensions
India and the United Kingdom (UK) on Thursday signed a modern and comprehensive trade agreement, marking a major milestone in their bilateral relationship at a time of rising geopolitical polarisation and trade wars. Under the agreement, 99 per cent of Indian exports will enter the UK duty-free, while 90 per cent of UK goods will gain market access in India with zero tariffs. The deal, known as the Comprehensive Economic and Trade Agreement (CETA), was signed by Union Commerce and Industry Minister Piyush Goyal and his British counterpart Jonathan Reynolds, 42 months after negotiations began in January 2022. The signing took place in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer at Chequers, the official countryside retreat of the British PM, in the Chiltern Hills of Buckinghamshire. 'This agreement is more than just an economic partnership; it is a blueprint for shared prosperity. On the one hand, it paves the way for enhanced market access in the UK for Indian textiles, footwear, gems and jewellery, seafood, and engineering goods…. On the other hand, UK-made products such as medical devices and aerospace components will become more accessible and affordable for Indian consumers and industries,' Modi said during the joint press statement in the UK. The agreement will come into effect once ratified by both countries. While the Union Cabinet in India has approved the deal, it still requires approval from the UK Parliament. CETA will reduce India's applied trade-weighted average tariff on goods imports from the UK from 15 per cent to 3 per cent, according to the UK government. However, the agreement does not address how to deal with the UK's Carbon Border Adjustment Mechanism when it comes into force in January 2027, despite India having raised concerns. India has granted tariff concessions on alcohol and automobiles -- key demands from the UK -- though in a staggered manner. Tariffs on whisky will be reduced from 150 per cent to 40 per cent over 10 years. For cars, where tariffs currently stand as high as 110 per cent, rates will fall to 10 per cent but within a quota. India will also eliminate or gradually phase out duties on consumer goods including soaps, perfumes, shaving creams and nail polish. However, the deal does not extend concessions to electric, hybrid and hydrogen-powered vehicles for the first five years. Tariff cuts have also excluded products such as apples, cheese, whey, gold bars, and smartphones, with India seeking to protect sensitive domestic sectors. Britain, in turn, has excluded meat, rice, sugar and eggs from tariff liberalisation. A standalone Double Contributions Convention (DCC) was also signed alongside the CETA. The treaty will prevent double payment of social security contributions -- roughly 20 per cent -- for a period of three years, benefiting an estimated 75,000 Indian professionals working in the UK. As part of the deal, India has committed to granting UK firms access to its vast government procurement market. British companies will be able to bid for around 40,000 tenders annually, with a total value of at least £38 billion. UK-origin goods with just 20 per cent domestic content will be treated as 'Class II' local suppliers under India's Public Procurement Order, a category previously reserved for Indian suppliers with 20–50 per cent local content. Experts said the move signals a shift away from using public procurement as a lever for domestic industrial development. 'The 20 per cent local content rule allows UK firms to use up to 80 per cent inputs from third countries -- such as China or the European Union -- while still receiving preferential treatment, effectively diluting the benefits that programs like 'Make in India' and Atmanirbhar Bharat were designed to protect,' according to a report released by Delhi-based think tank GTRI.
