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Good morning. Geopolitical tensions in the region are rising. India and Pakistan are on the brink of conflict after last week’s terror attack in Pahalgam, while China has proclaimed sovereignty over a disputed reef in the South China Sea, triggering a new stand-off with the Philippines. We will keep an eye on these troubling developments.
In today’s newsletter: Indian banks have six months to move to a new internet domain. But first, a golden window of opportunity has opened for India’s electronic manufacturing companies.
For Indian electronic manufacturers, the time is now
Indian companies that operate electronics manufacturing facilities for global giants are beginning to look like they will be the biggest beneficiaries from Trump’s tariffs. Last week, my colleagues reported that Apple will be moving all of its production of iPhones for the US market to India. HP was also in the news, with plans to double its production capacity in India this year. It will tap into the government’s production-linked incentive scheme and make more computers and laptops, among other products.
HP’s local partner is Dixon Technologies, which also manufactures for other big brands including Samsung, Panasonic, Motorola and Philips. Dixon’s share price has doubled in the past 12 months, and is trading now at Rs16,200+ levels. The share prices of several smaller manufacturers are following a similar trajectory.
Take PG Electroplast, for example, a company that makes home appliances for clients such as LG, Whirlpool and Voltas. Its shares, which were trading at Rs200 this time last year, touched the Rs1,000 mark in January this year, and are currently at Rs900. Or Avalon Technologies, which has clients across industries from clean energy to aerospace and is up 80 per cent in the past 12 months. Or Kaynes Technologies, which has climbed 120 per cent higher over the same period.
The government’s PLI scheme has contributed significantly to the robust order books of some of these companies. But their next round of growth will depend on how well they can help clients diversify their supply chains. It will not necessarily be an easy path. The news of Apple shifting its manufacturing of America-bound iPhones from China to India has not gone down well in the US, as Trump’s tariffs are (at least theoretically) meant to bring manufacturing back home, and not to a third country.
Practically though, it is unlikely that will happen in the short or medium term because US production facilities will need access to reliable labour and domestic supply chains, as well as clarity on policy, all of which are in short supply now. Indian manufacturing companies, therefore, have a short runway to become significant players in a new(ish) global order. They have to build upon their recent successes rather quickly.
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New domain for banks
Indian banks will soon have to move their online operations to websites with the “.bank.in” domain, as the country’s central bank puts in place mechanisms to minimise fraudulent transactions.
The Reserve Bank of India introduced this domain in February and recently made October 31 the deadline for lenders to fully switch over. The idea is that only banks will have access to this address, which will help customers better identify genuine bank websites. The RBI has also proposed a “.fin.in” domain for financial services companies, but has yet to announce a start date.
Digital fraud is a significant problem in India, with the RBI pegging the total loss from such cases at Rs14.57bn ($175mn) in 2024, up more than 400 per cent from the previous fiscal year. The central bank has taken several actions to tackle this issue. Last year, it proposed a platform for real-time data sharing across the payment ecosystem, and set up a committee with members from various parts of the industry. However, as is usually the case, regulators have been one step behind the fraudsters, who are employing increasingly sophisticated technological and psychological tactics on targets.
Customer education is the other key area. RBI has been running advertisements across various channels to warn users about potential scams. Readers will also be familiar with the automated warnings played before many phone calls nowadays. However, this is a game of whack-a-mole. The easier payments get, the more vulnerable customers will be to scams. A bank.in domain is a reasonable initiative, but it is not going to be a universal fix.
Have you or anyone you know been a victim of digital payment fraud? Hit reply or write to us at indiabrief@ft.com
Go figure
Indian auto major Mahindra & Mahindra announced it would be acquiring a majority stake in the commercial vehicle manufacturer SML Isuzu. Here is the deal at a glance.
My mantra
“My personal growth mantra centres on the continuous pursuit of knowledge. I look for the dots on the horizon, which I believe will shape new ideas. The Internet, with all its facets, throws up these dots and updates them regularly. The digital information landscape comprising technology, finance, global markets, the India opportunity and learnings from other economies that have gone through the developmental phase, are a fascinating mix to learn from on a daily basis.”
KV Kamath, chair, Jio Financial Services Limited
Each week, we invite a successful business leader to tell us their mantra for work and life. Want to know what your boss is thinking? Nominate them by replying to indiabrief@ft.com
Quick question
Will you buy a Tesla if it launches in India? The company has, reportedly, leased office space in Mumbai. Take our poll here.
Buzzer round
On Friday we asked: What is the United Arab Emirates aiming to deploy to speed up lawmaking by 70 per cent?
The answer is . . . artificial intelligence! AI will help write new legislation, as well as review and amend existing laws.
Aniruddha Dutta is back this week with the first answer. Neel Patel, Ram Teja, Prasanna Venkatesh and several others got the right answer. Congratulations!
Thank you for reading. India Business Briefing is edited by Tee Zhuo. Please send feedback, suggestions (and gossip) to indiabrief@ft.com.
