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Mint
25-06-2025
- Business
- Mint
Export thrust: India should move goods like a horse to trade like a tiger
India's merchandise exports grew by a significant 39% from $317.5 billion in 2014 to $441.7 billion in 2024. This rise in exports testifies to India's ambition of positioning itself as a global manufacturing and export powerhouse. Flagship government schemes, such as production-linked incentives (PLI), Make in India and the Phased Manufacturing Programme have played a vital role in India's export thrust. The 'trading across borders' indicator from the World Bank's 2020 Doing Business data-set showed that exporting from India took significant time and money. On average, border procedures alone took 52 hours and $212 per container. Export documentation consumed 12 hours and $58. Importing took even more—with around 65 hours and $266 needed for border clearance, and 20 hours and $100 for documentation. In comparison, China was processing the same export shipments within 21 hours at a slightly higher cost of $256 per container. It processed documents faster too, in 9 hours on average, although the documentation cost is $74, slightly higher than in India. Also Read: IMEC jinx: There's no relief in sight from war clouds over this trade route India was better placed than the likes of Bangladesh and Vietnam, but behind countries like South Korea, which was the world leader on those counts. South Korea was doing border checks in just 13 hours at a cost of $185, and document processing in 1 hour for only $11. All these numbers showed the gap India needed to cover in competition with the world's best export performers. While Doing Business data is old and the World Bank has discontinued this study, its broad 2020 rankings may not have changed very much (except in Vietnam's case perhaps). More recent data from the World Bank's Logistics Performance Index (LPI) offers us another picture. This index tracks the transportation of goods within and between countries, taking into account six measures: customs efficiency, infrastructure, ease of coordinating international shipments, logistics quality, tracking and tracing ability, and punctuality (frequency of on-time shipments). As reported by the 2023 LPI report, India has taken significant strides on logistics, moving its world ranking from No. 54 in 2014 to No. 38 in 2023, with its score rising from 3.08 to 3.4. Its ranking on timeliness rose from No. 51 to No. 35, and its score for logistics competence and quality rose from 52 to 38, signifying higher professionalism and reliability in freight services. Moreover, in terms of infrastructure (covering ports, roads and railways), India's rank rose from No. 58 to No. 47, reflecting the impact of recent investments in physical logistical infrastructure. Still, China is ahead of India on an absolute basis, at 19th place with a score of 3.7. It scores better on all the key factors: timeliness, quality of logistics and impressively on infrastructure, indicating the strength and dependability of its supply chain mechanisms. India's progress is heartening. Yet, continued efforts are needed to reach the logistics performance of global leaders. Also Read: Our trade ambitions should make us look across as many seas as we can India has also achieved impressive reductions in 'dwell time'—the number of days that cargo is held at a terminal or port before it can proceed. In the LPI 2023 report, while 4 to 8 days is the typical dwell time for economies at every level of income, India is on par with Singapore with a dwell time of only 3 days. This is an achievement ahead of the UAE, South Africa, US and Germany, indicative of improved coordination between customs officials, port authorities and logistics firms. Underpinning these efficiency gains is India's massive investment in transport and logistics infrastructure. The coverage of National Highways (NH) increased from 65,569km in 2004 to 146,145km in 2024, with four and more lane stretches rising 2.6 times since 2014. The construction tempo has picked up sharply, from 12.1km per day in 2014-15 to 33.8km per day in 2023-24. Flagship programmes such as the Bharatmala Pariyojana launched in 2017, are developing 26,000km of economic corridors, ring roads, bypasses and elevated corridors to ease city congestion and enhance freight movement. As of November 2024, 18,926km of roads had been constructed under this scheme. Also Read: The time is right for a reset of India's trade ties with China Apart from this, 35 multimodal logistics parks are also being built under the Bharatmala plan, with an aggregate outlay of ₹46,000 crore. On commissioning, these parks will be capable of transporting 700 million metric tonnes of cargo, increasing India's capacity to integrate various modes of transport in a cost-effective manner. India's port cargo handling capacity has nearly doubled from 800.5 million tonnes annually in 2014 to 1,630 million tonnes in 2024, an increase of 87%. India has also climbed in terms of its world ranking in shipments, from No. 44 in 2014 to No. 22 in 2023. Concurrently, the turnaround time (TRT) at major ports—the time that ships spend at port—has declined significantly from 94 hours in 2013-14 to 48.06 hours in 2023–24. Average berth-day production has gone up by 52% and India is also seeing increased tourism through cruise terminals and lighthouse sites. Also Read: India could learn much from the complaints of its trade partners These reforms can be said to represent a paradigm shift. India is slowly putting in place the logistical framework necessary to support its dream of becoming an export-led economy. Continued and deepened, these reforms could bridge the gap between India's expansive trade aspirations and the harsh realities of trading on the international stage, thus making India not just a significant exporter but a truly competitive one. These are the author's personal views. The author is a research associate, NCAER, New Delhi.
Time of India
04-05-2025
- Business
- Time of India
After smartphone dominance, appliance makers set to dial in next electronics boom
The smartphone industry may be the star of India's manufacturing incentive programme, but consumer electronics and home appliance manufacturers are now getting in on the act. Brands and contract manufacturers such as LG , Samsung , Haier , Havells , Godrej Appliances , Dixon Technologies , Amber Enterprises , PG Electroplast and Epack Durable have lined up record investments of over Rs 13,000 crore to be executed over the next one-two years, according to executives. That's more than twice that of FY24 and FY25 put together. This excludes the investments most of them will make under the recently announced incentive scheme for electronic components, plans for which are still being finalised by the companies, the executives said. Chief executives said proposed investments will create capacities for both domestic and export markets to prepare for opportunities under the emerging tariff regime and backward integration into components. This is despite demand having been bleak for almost 10 quarters now, except for premium products. Amber Enterprises CEO Jasbir Singh said components such as printed circuit boards are asset-heavy business and without government incentives it did not make business sense to make such high investments until now. LG Electronics is investing Rs 5,001 crore in a new plant in Sri City in Andhra Pradesh. The Sri City plant will be LG Electronics' third unit in the country, having set up its last factory about two decades ago. This one will produce home appliances including ACs. Samsung meanwhile will be spending over Rs 1,000 crore to expand capacities at its plant in Tamil Nadu. Haier is making a fresh investment of Rs 800 crore in India to expand its AC production capacity with a new plant and it aims to start making PCBs. It's already invested about Rs 1,600 crore in India. In the last fiscal year, Haier spent Rs 200 crore, while the South Korean duo made no major manufacturing investments. Godrej Appliances has started trials of an AC compressor developed in-house and plans to set up a new plant to make it. Havells India will invest Rs 2,000 crore in the next two years on a new R&D centre and a refrigerator factory among other projects, the company told analysts on an earnings call. Its capital expenditure in the last fiscal year was Rs 800 crore. Capex over the next five years will far exceed what it's spent in the last 20 years, Havells managing director Anil Rai Gupta told ET. He said the company is also evaluating investment in components. The Make in India initiative, the Phased Manufacturing Programme and the production-linked incentive (PLI) scheme helped transform mobile phone manufacturing in the country. India is now the world's second-biggest maker of these devices with more than 300 factories compared with two in 2014. The value of mobile phones manufactured has risen to Rs 4.22 lakh crore in FY24 from Rs 18,900 crore in FY14, as per the latest government data. The mobile phone PLI scheme alone attracted cumulative investment of Rs 10,905 crore till February 2025. In contrast, the investment in manufacturing of other electronic products such as televisions, home appliances, laptops and electronic components has lagged. The industry is said to be lobbying for a PLI scheme for refrigerators. Contract manufacturer Amber plans to invest Rs 2,000 in the next two fiscals on two PCB plants and other projects. Industry executives said Dixon aims to invest Rs 900-1,000 crore in FY25. PG Electroplast and Epack Durables want to more than double the investments they made last year. Company executives did not comment. The current high capex cycle across the electronics industry is aimed at building a component ecosystem and preparing for opportunities when consumption improves, said Vikas Gupta, MD—operations, PG Electroplast.
Business Mayor
04-05-2025
- Business
- Business Mayor
After smartphone dominance, appliance makers set to dial in next electronics boom
Kolkata: The smartphone industry may be the star of India's manufacturing incentive programme, but consumer electronics and home appliance manufacturers are now getting in on the and contract manufacturers such as LG, Samsung, Haier, Havells, Godrej Appliances, Dixon Technologies, Amber Enterprises, PG Electroplast and Epack Durable have lined up record investments of over Rs 13,000 crore to be executed over the next one-two years, according to executives. That's more than twice that of FY24 and FY25 put together. This excludes the investments most of them will make under the recently announced incentive scheme for electronic components, plans for which are still being finalised by the companies, the executives said. Chief executives said proposed investments will create capacities for both domestic and export markets to prepare for opportunities under the emerging tariff regime and backward integration into components. This is despite demand having been bleak for almost 10 quarters now, except for premium products. Amber Enterprises CEO Jasbir Singh said components such as printed circuit boards are asset-heavy business and without government incentives it did not make business sense to make such high investments until now. LG Electronics is investing Rs 5,001 crore in a new plant in Sri City in Andhra Pradesh. The Sri City plant will be LG Electronics' third unit in the country, having set up its last factory about two decades ago. This one will produce home appliances including ACs. Samsung meanwhile will be spending over Rs 1,000 crore to expand capacities at its plant in Tamil Nadu. Haier is making a fresh investment of Rs 800 crore in India to expand its AC production capacity with a new plant and it aims to start making PCBs. It's already invested about Rs 1,600 crore in India. In the last fiscal year, Haier spent Rs 200 crore, while the South Korean duo made no major manufacturing investments. Godrej Appliances has started trials of an AC compressor developed in-house and plans to set up a new plant to make India will invest Rs 2,000 crore in the next two years on a new R&D centre and a refrigerator factory among other projects, the company told analysts on an earnings call. Its capital expenditure in the last fiscal year was Rs 800 crore. Capex over the next five years will far exceed what it's spent in the last 20 years, Havells managing director Anil Rai Gupta told ET. He said the company is also evaluating investment in Make in India initiative, the Phased Manufacturing Programme and the production-linked incentive (PLI) scheme helped transform mobile phone manufacturing in the country. India is now the world's second-biggest maker of these devices with more than 300 factories compared with two in 2014. The value of mobile phones manufactured has risen to Rs 4.22 lakh crore in FY24 from Rs 18,900 crore in FY14, as per the latest government data. The mobile phone PLI scheme alone attracted cumulative investment of Rs 10,905 crore till February 2025. In contrast, the investment in manufacturing of other electronic products such as televisions, home appliances, laptops and electronic components has lagged. The industry is said to be lobbying for a PLI scheme for refrigerators. Contract manufacturer Amber plans to invest Rs 2,000 in the next two fiscals on two PCB plants and other projects. Industry executives said Dixon aims to invest Rs 900-1,000 crore in FY25. PG Electroplast and Epack Durables want to more than double the investments they made last year. Company executives did not comment. The current high capex cycle across the electronics industry is aimed at building a component ecosystem and preparing for opportunities when consumption improves, said Vikas Gupta, MD—operations, PG Electroplast. READ SOURCE
Time of India
04-05-2025
- Business
- Time of India
Appliance Makers Set to Dial In Next Electronics Boom
The smartphone industry may be the star of India's manufacturing incentive programme, but consumer electronics and home appliance manufacturers are now getting in on the act. #Pahalgam Terrorist Attack Code of war: India and Pakistan take their battle to the (web)front Forex reserves show a pauperised Pakistan, a prospering India Pakistan conducts training launch of surface-to surface ballistic missile Brands and contract manufacturers such as LG, Samsung, Haier, Havells, Godrej Appliances, Dixon Technologies, Amber Enterprises, PG Electroplast and Epack Durable have lined up record investments of over ₹13,000 crore to be executed over the next one-two years, according to executives. That's more than twice that of FY24 and FY25 put together. This excludes the investments most of them will make under the recently announced incentive scheme for electronic components, plans for which are still being finalised by the companies, the executives said. Chief executives said proposed investments will create capacities for both domestic and export markets to prepare for opportunities under the emerging tariff regime and backward integration into components. This is despite demand having been bleak for almost 10 quarters now, except for premium products. Amber Enterprises CEO Jasbir Singh said components such as printed circuit boards are asset-heavy business and without government incentives it did not make business sense to make such high investments until now. LG Electronics is investing ₹5,001 crore in a new plant in Sri City in Andhra Pradesh. The Sri City plant will be LG Electronics' third unit in the country, having set up its last factory about two decades ago. This one will produce home appliances including ACs. Samsung meanwhile will be spending over ₹1,000 crore to expand capacities at its plant in Tamil Nadu. Haier is making a fresh investment of ₹800 crore in India to expand its AC production capacity with a new plant and it aims to start making PCBs. It's already invested about ₹1,600 crore in India. In the last fiscal year, Haier spent ₹200 crore, while the South Korean duo made no major manufacturing investments. Godrej Appliances has started trials of an AC compressor developed in-house and plans to set up a new plant to make it. Havells India will invest ₹2,000 crore in the next two years on a new R&D centre and a refrigerator factory among other projects, the company told analysts on an earnings call. Its capital expenditure in the last fiscal year was ₹800 crore. Capex over the next five years will far exceed what it's spent in the last 20 years, Havells managing director Anil Rai Gupta told ET. He said the company is also evaluating investment in components. The Make in India initiative, the Phased Manufacturing Programme and the production-linked incentive (PLI) scheme helped transform mobile phone manufacturing in the country. India is now the world's second-biggest maker of these devices with more than 300 factories compared with two in 2014. The value of mobile phones manufactured has risen to ₹4.22 lakh crore in FY24 from ₹18,900 crore in FY14, as per the latest government data. The mobile phone PLI scheme alone attracted cumulative investment of ₹10,905 crore till February 2025. In contrast, the investment in manufacturing of other electronic products such as televisions, home appliances, laptops and electronic components has lagged. The industry is said to be lobbying for a PLI scheme for refrigerators. Contract manufacturer Amber plans to invest ₹2,000 in the next two fiscals on two PCB plants and other projects. Industry executives said Dixon aims to invest ₹900-1,000 crore in FY25. PG Electroplast and Epack Durables want to more than double the investments they made last year. Company executives did not comment. The current high capex cycle across the electronics industry is aimed at building a component ecosystem and preparing for opportunities when consumption improves, said Vikas Gupta, MD—operations, PG Electroplast.
Economic Times
04-05-2025
- Business
- Economic Times
After smartphone dominance, appliance makers set to dial in next electronics boom
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Kolkata: The smartphone industry may be the star of India's manufacturing incentive programme, but consumer electronics and home appliance manufacturers are now getting in on the and contract manufacturers such as LG PG Electroplast and Epack Durable have lined up record investments of over Rs 13,000 crore to be executed over the next one-two years, according to executives. That's more than twice that of FY24 and FY25 put together. This excludes the investments most of them will make under the recently announced incentive scheme for electronic components, plans for which are still being finalised by the companies, the executives executives said proposed investments will create capacities for both domestic and export markets to prepare for opportunities under the emerging tariff regime and backward integration into components. This is despite demand having been bleak for almost 10 quarters now, except for premium Enterprises CEO Jasbir Singh said components such as printed circuit boards are asset-heavy business and without government incentives it did not make business sense to make such high investments until now. LG Electronics is investing Rs 5,001 crore in a new plant in Sri City in Andhra Sri City plant will be LG Electronics' third unit in the country, having set up its last factory about two decades ago. This one will produce home appliances including ACs. Samsung meanwhile will be spending over Rs 1,000 crore to expand capacities at its plant in Tamil is making a fresh investment of Rs 800 crore in India to expand its AC production capacity with a new plant and it aims to start making PCBs. It's already invested about Rs 1,600 crore in India. In the last fiscal year, Haier spent Rs 200 crore, while the South Korean duo made no major manufacturing investments. Godrej Appliances has started trials of an AC compressor developed in-house and plans to set up a new plant to make India will invest Rs 2,000 crore in the next two years on a new R&D centre and a refrigerator factory among other projects, the company told analysts on an earnings call. Its capital expenditure in the last fiscal year was Rs 800 crore. Capex over the next five years will far exceed what it's spent in the last 20 years, Havells managing director Anil Rai Gupta told ET. He said the company is also evaluating investment in Make in India initiative, the Phased Manufacturing Programme and the production-linked incentive (PLI) scheme helped transform mobile phone manufacturing in the country. India is now the world's second-biggest maker of these devices with more than 300 factories compared with two in 2014. The value of mobile phones manufactured has risen to Rs 4.22 lakh crore in FY24 from Rs 18,900 crore in FY14, as per the latest government data. The mobile phone PLI scheme alone attracted cumulative investment of Rs 10,905 crore till February contrast, the investment in manufacturing of other electronic products such as televisions, home appliances, laptops and electronic components has lagged. The industry is said to be lobbying for a PLI scheme for manufacturer Amber plans to invest Rs 2,000 in the next two fiscals on two PCB plants and other projects. Industry executives said Dixon aims to invest Rs 900-1,000 crore in FY25. PG Electroplast and Epack Durables want to more than double the investments they made last year. Company executives did not current high capex cycle across the electronics industry is aimed at building a component ecosystem and preparing for opportunities when consumption improves, said Vikas Gupta, MD—operations, PG Electroplast.
