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Time of India
12 hours ago
- Business
- Time of India
'Mastered the art of slogans, not solutions': Rahul Gandhi targets PM Modi over economic woes, says ‘Make in India' failing youth
NEW DELHI: Congress MP Rahul Gandhi on Saturday took a jibe at Prime Minister Narendra Modi, questioning the success of the 'Make in India' initiative and accused him of focusing on catchy slogans rather than delivering real solutions to India's economic challenges. Tired of too many ads? go ad free now In a post on X, Gandhi said, "'Make in India' promised a factory boom. So why is manufacturing at record lows, youth unemployment at record highs, and why have imports from China more than doubled? Modi ji has mastered the art of slogans, not solutions. Since 2014, manufacturing has fallen to 14% of our economy." He highlighted that manufacturing has dropped to just 14% of the country's economy since 2014, the year the initiative was launched. He also pointed to a sharp rise in imports from China, accusing the Union government of ignoring local industry in favour of catchy slogans. Gandhi, LoP in Lok Sabha, also shared a video of his interaction with two young men, Shivam and Saif, in Nehru Place, New Delhi. He said the duo are skilled and full of potential but lack the opportunities to succeed in today's economic environment. 'The truth is stark: we assemble, we import, but we don't build. China profits." he said, criticising India's dependence on imported goods and lack of robust manufacturing. He further alleged that the Production-Linked Incentive (PLI) scheme, once heavily promoted by the government, is now being quietly rolled back. "With no new ideas, Modi ji has surrendered. Even the much-hyped PLI scheme is now being quietly rolled back. India needs a fundamental shift - one that empowers lakhs of producers through honest reforms and financial support,' Gandhi warned. Tired of too many ads? go ad free now 'We must stop being a market for others. If we don't build here, we'll keep buying from those who do. The clock is ticking, ' he added. The Make in India initiative was launched by PM Modi in 2014 as part of a broader effort to drive nation-building and boost the manufacturing sector.
Hindustan Times
7 days ago
- Automotive
- Hindustan Times
India may ease EV localisation rules as China's rare earth export curbs hit supply chain
Importing motors from China or elsewhere won't only impact local production—it might inflate EV prices Notify me India is mulling easing its 50 percent localization requirement for electric vehicle (EV) makers and suppliers as the country is faced with global rare earth supply chain disruptions. The decision follows China's recent export curbs on rare earth elements—key materials employed in manufacturing magnets for electric motors. Although the Society of Indian Automobile Manufacturers (SIAM) has yet to formally request a policy change, key stakeholders have raised concerns in closed-door discussions with government officials, a report by Bloomberg stated. Also Read : Rare earth magnet supply crisis has no impact on production so far, says Skoda India Rare earth squeeze tests local plans The Indian government had pinned its EV growth strategy on the Production-Linked Incentive (PLI) scheme, which rewards domestic manufacturing. But China's April crackdown on rare earth exports compelled Indian automakers to rethink their strategy. Since rare earth-based permanent magnets are the foundation of traction motors, manufacturers now have major challenges in ensuring local content requirements. To dampen the effect, the government has informally guided OEMs to import complete motors or parts assembling in the meanwhile. Suppliers face mounting pressure The change is a significant setback for Indian auto part suppliers who have been investing heavily in bringing forward advanced EV components like Permanent Magnet Synchronous Reluctance Motors (PMSRM) locally. Without the critical raw materials, these suppliers could fall short of being eligible for PLI—just as they were reaching critical milestones. Moreover, waiting on alternatives may further put Indian companies behind international players. Also Read : No impact of rare earth magnet shortage on production so far: Maruti Suzuki Chairman Cost hikes threaten affordability Importing motors from China or elsewhere won't only impact local production—it might inflate EV prices. Industry sources say shipping a motor via sea adds around ₹ 2,000 per vehicle, while air freight might raise costs by as much as ₹ 5,000 for smaller EVs like two-wheelers. This surge could drive away consumers and impact sales volumes in a price-sensitive nation such as India. India's push toward EV self-sufficiency now faces a steep climb. Unless Indian supply chains are able to rapidly redirect or identify different sources of rare earths, relaxing localization targets will be the only way to maintain momentum in the near term. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 15 Jun 2025, 08:27 AM IST
Time of India
09-06-2025
- Automotive
- Time of India
Power shift: How Tesla's turmoil is steering global capital towards India
In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk , the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump . The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate history. The catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial chaos. However, amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India's EV Ecosystem: Charging Ahead as Tesla Slows Down India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer demand. Analysts at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial growth. Supply Chain and Clean-Tech Investment: India as the Next Global Pivot Tesla's valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive regions. With U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial development. The Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply chains. According to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American companies. Moreover, India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the EY-ISpA. Disruption for Some, Direction for Others The Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap.
Fibre2Fashion
09-06-2025
- Business
- Fibre2Fashion
Indian firms resilient to US tariff pressures: Moody's & ICRA
Moody's-rated Indian non-financial corporates are largely shielded from US import tariffs, owing to their domestic market orientation and minimal export reliance, as per Moody's Ratings. Most Indian non-financial corporates are shielded from US tariffs due to domestic focus, according to Moody's and ICRA. Textiles may gain from the Indiaâ€'UK FTA, while capex is expected to reach $50 billion annually over two years. GDP growth is forecast at 6.3 per cent in FY25. Despite geopolitical risks and sector-specific challenges, corporate balance sheets remain strong and well-positioned. The Indian textile sector is expected to gain a competitive edge over China, buoyed by the recent India–UK Free Trade Agreement. Continued government focus on boosting private consumption, expanding manufacturing capacity, and ramping up infrastructure spending is expected to offset weakening global demand, Moody's Ratings and its Indian affiliate ICRA said in a release. 'Shifts in global supply chains coupled with the Indian government's efforts to increase local production will benefit domestic manufacturing. However, challenges such as the inadequacy of skilled labour, evolving logistics infrastructure and complex land and labour laws in the country could constrain the growth of India's manufacturing sector', said Vikash Halan, managing director at Moody's Ratings. Moody's is expecting these companies would invest approximately $50 billion annually in capital expenditure over the next two years, largely funded through internal accruals. As a result, average leverage levels, measured by debt/EBITDA, are projected to stay close to 3.0x. Meanwhile, ICRA has noted that Indian corporates are generally well-positioned to weather tariff uncertainties and geopolitical tensions. However, sectoral vulnerabilities persist. Geopolitical risks, especially tensions with Pakistan, may temporarily impact the travel and hospitality sectors. Yet, India's overall exposure to such risks is seen as moderate. ICRA has forecast India's GDP to grow by 6.3 per cent in fiscal 2025 (FY25) and 6.2 per cent in fiscal 2026 (FY26). Manufacturing momentum is accelerating under the Production-Linked Incentive (PLI) scheme. 'Urban consumption, muted in FY25, is expected to recover in FY26, supported by income tax relief, further rate cuts, and easing food inflation,' said K Ravichandran, EVP and chief rating officer, ICRA Ltd. India's corporate sector has also seen significant deleveraging, with debt/OPBITDA improving to 2.1x as of March 2025, from 3.2x in March 2019. In the financial sector, despite some asset quality concerns in unsecured lending and microfinance, both bank and NBFC balance sheets remain stable and capable of supporting credit growth, contingent on liquidity conditions. Fibre2Fashion News Desk (HU)
Economic Times
09-06-2025
- Automotive
- Economic Times
Power shift: How Tesla's turmoil is steering global capital towards India
Getty Images (Image for representation) The Musk–Trump standoff may have caused a ripple of fear in US markets, but for India, it is a signal to act. In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk, the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump. The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap. The contributors is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur – Kerala.
