Foxconn’s $700M Investment in India Sparks Electronics Industry Revolution!
Foxconn Technology Group, a major partner of Apple Inc., is planning to invest a whopping $700 million on a new plant in India to boost local production. This move highlights a growing trend of manufacturing shifting away from China amidst mounting tensions between Washington and Beijing. The Taiwanese company is eyeing a 300-acre site near the airport in Bengaluru, the capital of Karnataka, to build the new factory that will manufacture iPhone parts.
But wait, there’s more! The plant might also assemble Apple’s handsets and produce some parts for Foxconn’s new electric vehicle business. This could be a game-changer for India’s electronics industry and create about 100,000 jobs in the region.
With this new investment, Foxconn aims to deepen partnerships, seek cooperation in new areas such as semiconductor development, and explore the most beneficial development opportunities for the company and all stakeholders.
This is a clear signal that the global supply chain is undergoing a massive transformation, as US brands and their Chinese-based suppliers explore alternative locations such as India and Vietnam. So, brace yourselves for a major shift in the electronics industry, as India gears up to become a hub for iPhone assembly and component supply, with its share expected to rise from sub-5% to 10-15% in the near future!
India’s Crude Oil Imports from Russia Hit Record High, Surpassing Traditional Suppliers!
India has set a new record for crude oil imports from Russia, which soared to a whopping 1.6 million barrels per day in February. This means that Russia has now surpassed India’s traditional oil suppliers, Iraq and Saudi Arabia, and is the country’s single largest supplier of crude oil for the fifth consecutive month.
According to Vortexa, a renowned energy cargo tracker, Russia’s share of India’s imports has increased from less than 1 percent before the Russia-Ukraine conflict in February 2022 to an incredible 35 percent in February 2023. This comes as no surprise as Russian oil is being sold at a discount to other grades, and Indian refiners are eagerly snapping up the plentiful Russian cargoes.
A Quick Detour
|Country Supplying Crude Oil to India||Quantity (Barrels Per Day)||Price|
|Russia||9,39,921 bpd||64.55 USD/bbl|
|Saudi Arabia||6,47,813 bpd||78.01 USD/bbl|
|UAE||4,04,570 bpd||85.54 USD/bbl|
|USA||2,48,430 bpd||79.85 USD/bbl|
This rise in Russian oil imports has come at the expense of Saudi Arabia and the United States, whose imports fell 16 percent and 38 percent, respectively. However, Indian refiners are enjoying a boost in refining margins from processing discounted Russian crude.
As long as the economics remain favorable and financial and logistical services to support the trade are available, refiners’ import appetite for Russian barrels is likely to remain robust.
All in all, the energy sector in India is buzzing with excitement, and with the increasing demand for crude oil, it’s no surprise that Russia is taking the lead as India’s largest supplier. Keep your eyes peeled for more exciting updates!
Delayed Projects Plague India’s Major Sectors: Road Transport Takes the Biggest Hit!
India’s major sectors like Road Transport, Railways, and Petroleum are being thrown into a disreputable light due to delayed projects. This is a serious issue as it could cause a ripple effect on the economy. The country has a whopping 1,454 central sector projects worth INR 150 crore and above, but a staggering 871 of them are delayed! That’s not all, 272 projects are reporting additional delays despite reporting the date of completion in the previous month. Yikes!
|Sector Details||Road Transport Sector||Railways Sector||Petroleum Sector|
|Total Number of Projects||749||173||152|
|Original cost of the Project (in crores)||Rs. 4,09,053||Rs. 3,72,761||Rs. 3,78,090|
|Number of Projects delayed||460||117||90|
|Anticipated Cost due to delay (in crores)||Rs. 4,27,518||Rs. 6,26,632||Rs. 3,96,608|
|Cost Overrun (in %)||4.5%||68.1%||4.9%|
Some of the top three delayed projects are the Munirabad-Mahabubnagar Rail Project, Udhampur-Srinagar-Baramulla Rail Project, and Delaput-Seawood-Urban Electrified Double Line.
These projects are delayed by 276, 247, and 228 months respectively. This is a major setback for the infrastructure development in the country. The government needs to take urgent action to ensure that these projects are completed on time to prevent further damage to the economy.