India's economic stories - what does the world recently talk about!

Tamil Nadu has solidified its position as India's leading exporter of electronic products, achieving a record-breaking $9.56 billion in electronics exports for the fiscal year 2023-24. This remarkable figure represents 32.84% of India's total electronic goods exports, which stood at $29.12 billion for the same period.The state's electronics sector has shown impressive growth, nearly doubling its export value from $5.37 billion in FY 2022-23. This surge in exports has placed Tamil Nadu far ahead of other states, with Karnataka, the second-largest exporter, recording $4.6 billion (15.78% of national share) and Uttar Pradesh following closely with $4.46 billion (15.32%).Several factors have contributed to Tamil Nadu's success in the electronics sector. The state has attracted significant investments from global electronics manufacturers, particularly those in the Apple supply chain. Companies like Foxconn, Pegatron, and Salcomp have established or expanded their operations in the state, driven in part by the global "China-Plus-One" strategy adopted by many multinational corporations.In September 2024, American communications giant Cisco launched its first Indian plant in Sriperumbudur, in partnership with global electronics manufacturer Flex. This move has further strengthened Tamil Nadu's position in the high-tech manufacturing ecosystem.The state government has played a crucial role in fostering this growth. In January 2024, Tamil Nadu unveiled its "Semiconductor and Advanced Electronics Policy 2024" at the Global Investors Meet. This policy aims to accelerate growth in the sector and create a skilled talent pool of 200,000 people by 2030.Recent investments have further bolstered the state's electronics manufacturing capabilities. Tata Electronics announced a ₹7,000 crore investment to expand its components plant in Hosur, while Foxconn committed ₹13,000 crore for further investments. US-based Jabil also announced plans to invest ₹2,000 crore in setting up a manufacturing facility in Tiruchirapalli, expected to create around 5,000 jobs.The success of Tamil Nadu's electronics sector extends beyond exports. The state has also emerged as the largest market for consumer electronics products in India, with e-commerce giant Amazon reporting a 35% year-on-year growth in the sector, the highest across the country.Looking ahead, Tamil Nadu's industries minister, TRB Rajaa, expressed confidence that the state's electronics exports will cross the $12 billion mark in FY 2024-25. The government is focusing on attracting investments further down the value chain, particularly in the Apple supply ecosystem.Tamil Nadu's achievements in the electronics sector demonstrate the state's pivotal role in India's economic growth. With its robust infrastructure, skilled workforce, and supportive government policies, Tamil Nadu is well-positioned to maintain its leadership in electronics manufacturing and exports in the coming years.---Join SEINET - the exclusive global network for tech and science product and industry leaders. SignUp Free www.startupeuropeindia.net

The accumulation of space debris in Earth's orbit has reached critical levels, raising concerns about the potential onset of Kessler Syndrome. This phenomenon, theorized by NASA scientist Donald Kessler in 1978, describes a scenario where the density of objects in low Earth orbit becomes so high that collisions between objects could cause a cascade, rendering space activities and satellite services impossible for generations.Currently, there are over 100 million pieces of space junk orbiting Earth, ranging from defunct satellites to tiny paint flecks. The increasing number of satellite launches, particularly mega-constellations for global internet coverage, is exacerbating the problem. Recent incidents, such as a Chinese rocket stage exploding and creating a debris cloud, highlight the growing risks.Efforts to mitigate space debris include improved tracking systems, satellite design modifications for easier deorbiting, and experimental cleanup technologies. However, experts warn that without significant international cooperation and stricter regulations, the space junk problem could soon reach a tipping point, potentially disrupting crucial satellite services and future space exploration.The article emphasizes the urgent need for global action to address this issue, as the consequences of inaction could be severe for both space-based technologies and Earth-bound societies that rely on them.---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free www.startupeuropeindia.net

The Indian government is exploring the possibility of reducing personal income tax rates for individuals earning up to 1.5 million rupees ($17,590) annually, according to sources cited by Reuters. This move, potentially to be announced in February's budget, aims to alleviate financial burdens on the middle class and encourage higher consumer spending amid a slowing economy.This tax relief initiative could benefit millions of taxpayers, particularly those in urban areas facing high living expenses. Under the proposed changes to the tax regime introduced in 2020, income between 300,000 and 1.5 million rupees would be taxed at rates ranging from 5% to 20%, with incomes above this threshold currently taxed at 30%. Indian taxpayers have the option to choose between the traditional tax system, which offers various exemptions, and the newer, simpler system with lower rates but fewer deductions. The specifics regarding the extent of these cuts are still under discussion, but the goal is clear: to spur economic consumption.The backdrop to these considerations is an economy that, despite growing at a robust 8.2% in the fiscal year 2023-24, has seen consumption growth lag significantly at half that pace. Prime Minister Modi has emphasized enhancing middle-class savings and life quality, which this tax cut proposal aligns with. However, the government's fiscal strategy remains cautious. Any reduction in tax revenue would need to be balanced against potential increases in consumption and subsequent indirect tax collection. The fiscal deficit target for the next financial year is set at 5.1% of GDP, which could provide some leeway for such fiscal maneuvers, especially with expected strong tax collections and dividends from the central bank.This potential tax cut reflects a broader strategy to address post-election economic concerns, including inflation, unemployment, and stagnating incomes, as highlighted in recent voter surveys. It's part of a nuanced approach to manage economic growth while ensuring fiscal responsibility.---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free www.startupeuropeindia.net