ujaglobaladvisory

[ujaglobaladvisory]

Secondment and TP Risk When: Employees Trigger Tax Trouble

“Secondments might look like simple HR moves — but tax authorities see more.”

If a foreign employee works in India, is it really a secondment? Or is it a cross-border service?

The answer could trigger:

Arm’s length charges

PE exposure

Transfer pricing compliance

In TP, even people can create risk. Here’s what you need to know.

As businesses globalize, sending employees on secondment to group companies in other countries has become routine. But for Transfer Pricing (TP) professionals, this simple HR move can quickly turn into a tax compliance puzzle.

The key question:

Is the secondee truly an employee, or is this actually a cross-border service? Let’s unpack this grey area.

What is a Secondment?

In a secondment arrangement, an employee of one entity (say, the foreign parent) is temporarily assigned to another entity (like an Indian subsidiary). The secondee works under the host company’s direction but remains on the home company’s payroll.

Why Tax Authorities Are Watching

Tax authorities are now scrutinizing secondment deals for two main reasons:

TP Angle:

If the secondee is effectively rendering a service from the parent to the subsidiary, the arrangement should involve an arm’s length service fee.

PE Risk (Permanent Establishment):

If a foreign employee is acting with authority or managing operations in India, it may trigger a PE, creating corporate tax exposure in India.

Key Indicators that Matter whether an arrangement is a true secondment or a service provision depend on the facts and conduct, not just the contract.

Some common red flags that suggest a service, not a secondment:

The secondee continues to report to the foreign entity

Key decisions are made under instructions from the parents

The subsidiary lacks control over day-to-day activities

The foreign company benefits from the output

On the other hand, a genuine secondment involves:

Full supervision by the host entity

Routine operational role, not strategic control

Cost recharge on a no-markup basis

No profit element or independent benefit to the foreign entity

[ujaglobaladvisory]

GST Portal Updates: Invoice Management, SPL 07 Appeal Order & Security Enhancements

Handling of Inadvertently Rejected records on IMS dated Jun 19th, 2025

To enable taxpayers to efficiently address invoice corrections or amendments with their suppliers through the GST portal, a new communication mechanism is being introduced. This initiative aims to assist taxpayers in reconciling their records with invoices issued by suppliers, thereby ensuring accurate Input Tax Credit (ITC) claims. However, taxpayers have encountered certain challenges in this process. To address these issues, the GSTN has implemented enhanced controls and greater transparency to effectively resolve the queries and concerns raised by taxpayers:

Question 1: How can a recipient avail of ITC of wrongly rejected Invoices / Debit notes / ECO-Documents in IMS, as the corresponding GSTR-3B of the same tax period was also filed by the recipient?

Answer: In such cases recipient can request the corresponding supplier to report the same record (without any change) in the same return period’s GSTR-1A or the respective amendment table of subsequent GSTR-1 / IFF. Thus, the recipient can avail the ITC based on the amended record by accepting such record on IMS and recomputing GSTR-2B on IMS. Here, the recipient will get the ITC of complete amended value as original record was rejected by the recipient.

However, the recipient will be able to take ITC for the again furnished document by the supplier, as stated above, only in the GSTR-2B of the concerned tax period.

Question 2: If any original record is rejected by the recipient and the supplier furnishes the same record in GSTR-1A of the same tax period or in the amendment table of GSTR-1 / IFF of a subsequent period, till the specified time limit, then what impact will it have on the supplier’s liability?

Answer: In case the supplier had furnished an original record in GSTR-1 / IFF but the same record was rejected wrongly by the recipient in IMS. In such cases supplier on noticing the same in the supplier’s view of IMS dashboard or on request of recipient, may furnish the same record again (without any change) in GSTR-1A of same tax period or the amendment table of GSTR-1 / IFF in any subsequent period, till the specified time limit, then the liability of supplier will not increase. As amendment table takes the delta value only. Thus, in the present case of the same values, the differential liability increase will be zero.

[ujaglobaladvisory]

GST Update: Major Changes in GST Portal

In line with the Finance Act, 2023 and recent advisories issued by GSTN/CBIC, the following major changes will come into force from the July 2025 tax period (i.e., returns due in August 2025):

GSTR-3B to Become Non-Editable

Starting July 2025, GSTR-3B will be fully auto-populated and non-editable. Taxpayers will no longer be permitted to manually alter tax liabilities or input figures.

Any corrections to outward supplies must be made through GSTR-1A, prior to filing GSTR-3B.

Once GSTR-3B is submitted, no further changes will be allowed under any circumstances.

This move is aimed at ensuring strict reconciliation between GSTR-1 and GSTR-3B data, thereby enhancing transparency and reducing discrepancies.

3-Year Time Limit for Filing Returns

Effective July 1, 2025, the GST portal will restrict the filing of returns that are more than 3 years past their original due date.

For example, GSTR-3B for July 2022 (originally due on August 20, 2022) must be filed no later than August 20, 2025.

This limitation will apply to all major returns including GSTR-1, GSTR-3B, GSTR-4, GSTR-9

Immediate Actions Recommended

To ensure smooth compliance under the revised framework, taxpayers are advised to:

Review and reconcile GSTR-1 data to prevent downstream mismatches in GSTR-3B.

Clear all pending or overdue returns, especially those for tax periods prior to July 2022.

Update internal SOPs and coordinate with your GST consultant or advisor to align with the upcoming system changes.

[ujaglobaladvisory]

Tax Planning Meets Green Investment: IREDA Bonds Under Section 54EC

What is IREDA?

Indian Renewable Energy Development Agency Limited (IREDA) is a ‘Navratna’ Government of India Enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).

IREDA is based in New Delhi, operating nationwide.

Its mission is to pioneer financing for renewable energy and energy efficiency projects, under its motto, “ENERGY FOR EVER”.

It’s the backbone of green financing in India, enabling affordable funding for clean-energy projects across the country.

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What is Section 54EC of the Income Tax Act, 1961?

The Section offers capital gains tax exemption when long-term gains from the sale of land or building are reinvested in notified bonds within 6 months of the sale.

You may invest your long-term capital gains into specified bonds issued by:

REC (Rural Electrification Corporation) PFC (Power Finance Corporation) IRFC (Indian Railways Finance Corporation) NHAI (National Highways Authority of India) Additionally, new issuers can be Government‑notified, such as IREDA Bonds, which recently gained 54EC eligibility.

These bonds usually earn an interest rate ranging from 5-6% per annum. Such Interest is taxable in the hands of the earner.

Conditions and Features of Investing in 54EC Bonds:

6-month window: You must invest in these bonds within 6 months of the sale of land or a building.

Lock-in period: Possession for 5 years is mandatory. Early redemption of the bonds voids the exemption under section 54EC.

Investment limit: Maximum INR 50 lakh per financial year.

Exemption amount: Minimum of – a) Capital gain amount b) Investment amount c) INR 50 lakhs

On Redemption of bonds on completion of a 5-year lock-in period, the principal is returned without capital gain tax. However, these bonds usually earn an interest rate ranging from 5-6% per annum. Such Interest is taxable under the head “Income from other Sources” each year.

Example of Investment in IREDA Bonds:

Imagine Mr. Ramesh sells his residential property on May 1st, 2025 and earns a long-term capital gain of ₹70 lakhs. He now has 6 months (until November 1st, 2025) to invest in 54EC-eligible bonds to save on capital gains tax.

With IREDA bonds now notified:i)He invests ₹50 lakhs in IREDA Bonds (issued after July 9, 2025). ii)He claims exemption on ₹50 lakhs of LTCG. iii)The remaining ₹20 lakhs is taxable under LTCG rules.

[ujaglobaladvisory]

Understanding the Competition (Amendment) Act, 2023

The Competition (Amendment) Act, 2023 marks a significant milestone in the evolution of India’s competition law framework. Enacted to address the challenges of a rapidly transforming market, especially in the digital economy, the amendment seeks to enhance regulatory efficiency, promote fair competition and align domestic practices with global standards. From introducing a deal value threshold for mergers and acquisitions to empowering the Competition Commission of India (CCI) with stronger investigative tools, the Act aims to streamline enforcement, close legal loopholes and ensure timely resolution of anti-competitive practices. 

Driving Market Fairness and Efficiency: Objectives of the 2023 Competition Law Amendments

Significant Growth of Indian Markets and Evolving Business Models Over the past decade, India has witnessed rapid economic expansion, digital transformation and a surge in startup activity. Traditional business models have evolved dramatically, with increasing reliance on data, technology platforms and complex global supply chains. These developments exposed regulatory gaps in the existing competition framework, particularly in addressing digital mergers and platform dominance.

Constitution of the Competition Law Review Committee (CLRC), 2018 Recognizing the need to update the Competition Act, 2002 in line with these changing dynamics, the Government of India set up the CLRC in 2018. The committee was tasked with reviewing the existing legislation, identifying structural and procedural challenges and recommending reforms to enhance the effectiveness of the Competition Commission of India (CCI).

Critical Observations on India’s Evolving Competition Framework

Provision to Avoid Multiplicity of Proceedings: The Amendment introduces a provision aimed at avoiding the multiplicity of proceedings before the Competition Commission of India (CCI). This provision empowers the CCI to reject information or complaints that have already been addressed or are substantially similar to matters previously adjudicated. The objective is to prevent repetitive or frivolous filings based on the same facts, whether by the same or different informants. By doing so, the amendment seeks to enhance procedural efficiency, reduce the burden on the Commission and ensure consistency in decision-making.

Provision Enabling Parties to Call Experts: The Act introduces a provision allowing parties involved in proceedings before the Competition Commission of India (CCI) to call upon experts to support their case. These experts may include economists, legal professionals or industry specialists who can provide technical or specialized insights relevant to the matter under investigation.

[ujaglobaladvisory]

SEBI New Update 2025 – Position of Company Secretary

In a recent SEBI’s interpretative letter dated 03.04.2025 addressed to DCB Bank Ltd. The SEBI has provided crucial clarity on the designation a hierarchical placement of Compliance Officer in Listed Companies under Reg 6 (1) of SEBI(LODR), Regulation, 2015.

Background

DCB bank approached SEBI through a formal request dated 09.01.2025, seeking informal guidelines on whether its current compliance officer, Ms. Rubi Chaturvedi who holds a position five level below to Board of Directors and report to the MD & CEO- meets the revised criteria under amended LODR.

SEBI Interpretation

SEBI clarified that under the amended proviso to Regulation 6 (1), the Compliance Officer must be:

Positioned One level below the Board of Directors i.e. directly below the MD or Whole Time Director.

The Positioned is necessary to ensure greater without and access to decision making at the board level, enabling the Compliance Officer to effectively discharge their regulatory and governance responsibilities.

Key take aways from SEBI Guidance

Distinction between ‘Level’ and ‘Reporting’

In case a listed entity does not have a Managing Director or a Whole-Time Director, then the Compliance Officer shall not be more than one-level below the Chief Executive Officer or Manager or any other person heading the day-today affairs of the listed entity.

Implication for Listed Entities

Companies must restructure their internal hierarchies if necessary to ensure that the Compliance Officer hold the prescribed seniority.

A failure to comply may be seen as a breach of the LODR requirements.

[ujaglobaladvisory]

India’s Bureau of Indian Standards (BIS): Key Updates and Regulatory Developments – 2025

As India strengthens its regulatory framework to prioritize product safety, quality and consumer protection, the Bureau of Indian Standards (BIS) plays a central role in shaping market access rules, particularly for imports. A key development is the forthcoming Omnibus Technical Regulation, effective September 1, 2026, which significantly expands the range of products requiring mandatory BIS certification. This regulation is part of a broader government strategy to align domestic practices with global standards, enhance industrial safety and ensure consumer confidence in both imported and locally manufactured goods.

BIS operates under the Ministry of Consumer Affairs, Food and Public Distribution and serves as India’s national standards body. Under the BIS Act of 2016, all products manufactured, sold, distributed or imported into India must conform to specific safety and quality standards. Non-compliance can lead to legal penalties and import restrictions. To accommodate different product types and origins, BIS offers several certification schemes:

Scheme — I (ISI Mark Scheme): For domestic manufacturers.

Scheme — II (Foreign Manufacturers Certification Scheme, FMCS): For overseas manufacturers exporting to India.

Scheme — X: Introduced with the Omnibus Order, focusing on complex and high-risk imported goods such as industrial machinery and electrical equipment.

Upcoming Highlight: IECGM 2025 — International Engagement

India will host the 89th International Electrotechnical Commission General Meeting (IECGM 2025) in New Delhi from 15–19 September 2025. The theme: “Fostering a Sustainable World.”

This event will convene over 2,000 delegates from 150+ countries and include thematic workshops on:

Artificial Intelligence

Green Energy

E-Mobility

Smart Electrotechnical Standards

As host, BIS will showcase India’s leadership in global standardization efforts.

Stay Ahead of Compliance

With Indian standards evolving rapidly, businesses must proactively monitor BIS updates and upcoming Quality Control Orders. Whether you’re a manufacturer, importer or service provider, staying compliant ensures uninterrupted market access, builds consumer trust and opens doors to international trade.

[ujaglobaladvisory]

Enhanced Corporate Governance through Companies (Accounts) Second Amendment Rules, 2025

Purpose of the Amendment-

The MCA introduced such an amendment to reflect the government’s ongoing efforts to increase accountability, digitize statutory filings and promote a safer and more inclusive work environment.

The objectives behind the Companies (Accounts) Second Amendment Rules, 2025 are multifaceted

Enhancing transparency by digitizing key statutory disclosures.

Upholding accountability by mandating disclosures on workplace conduct and employee rights.

Promoting gender inclusivity through a focus on sexual harassment and maternity benefit compliance.

Ensuring better governance by tightening corporate reporting practices and workplace ethics.

Filing of Extracts of Board Report and Auditors Report

The new amendment also brings in a requirement to file specific extracts electronically. The form documents must be filed electronically-

Extract Board Report along with Form AOC-1 and AOC-2. This extract must contain all the relevant disclosures, including those about sexual harassment complaints and maternity benefits compliance.

Extract of Auditor’s Report (Standalone) — this involves submitting the key observations and audit opinions of the company’s standalone financial statements.

Extract of Auditor’s Report (Consolidated) — If the companies have subsidiaries or associates, the consolidated audit report extract must also be electronically filed.

Conclusion

The Companies (Accounts) Second Amendment Rules, 2025 signify a progressive step towards better corporate governance, employee welfare and regulatory efficiency. Companies must take proactive steps to implement internal mechanisms that support timely and accurate disclosures. From ensuring workplace safety for women to embracing the digitization of statutory forms, these rules represent a holistic enhancement of the cooperative compliance ecosystem.

With effective planning and strong reporting structures, compliance with the Companies (Accounts) Second Amendment Rules, 2025 will not only help avoid penalties but also boost the company’s reputation in the eyes of regulators and stakeholders alike.

[ujaglobaladvisory]

Amendments to Directions - Compounding of Contraventions under FEMA, 1999: A Cap on Penalty in Select Cases

Amendments to Directions - Compounding of Contraventions under FEMA, 1999: A Cap on Penalty in Select Cases

The Reserve Bank of India (RBI), through A.P. (DIR Series) Circular No. 17/2024-25 dated October 1, 2024 and subsequent Master Directions on Compounding of Contraventions under FEMA, 1999 dated April 22, 2025, has introduced a noteworthy amendment aimed at making the compounding process more rational and equitable. This amendment specifically introduces a cap of ₹2,00,000 per contravention under certain conditions, significantly impacting the way minor or technical violations under FEMA are treated. Unsorted

Background: Compounding Under FEMA

The Foreign Exchange Management Act (FEMA), 1999, provides for compounding as a voluntary mechanism where individuals/entities can admit to contraventions and regularize them by paying a monetary penalty, thereby avoiding prosecution and lengthy legal proceedings.The Reserve Bank of India is empowered under Section 15 of the Foreign Exchange Management Act (FEMA), 1999, to compound certain contraventions and it periodically issues directions and updates to streamline this process.

Significance of the Amendment

Ease of Doing Business This move is particularly beneficial for small businesses, startups and new investors who may unintentionally delay compliance. The provision: Prevents excessive financial burden for minor contraventions. Promotes voluntary compliance by making penalties more proportionate. Reduces Litigation Risk A clear cap encourages entities to opt for compounding instead of waiting for enforcement actions. This also reduces administrative and judicial burden. Formal Recognition of Discretionary Relief Previously, although the RBI could impose a lower penalty, there was no formal clause enabling such a cap. This amendment institutionalizes that flexibility. Supports Regulatory Intent Over Rigid Enforcement The amendment signals the RBI’s intent to distinguish between substantive violations (e.g., illegal remittances or FDI violations) and procedural lapses, ensuring enforcement aligns with regulatory intent.

[ujaglobaladvisory]

Source: SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2025/47

Date of Issue: April 10, 2025

The Securities and Exchange Board of India (SEBI), through its Circular No. SEBI/HO/CFD/PoD2/CIR/P/2025/47, has ushered in a new era of transparency, governance and accountability for India’s listed entities and those aspiring to list on Indian stock exchanges. These reforms significantly enhance the framework for corporate disclosures, focusing on materiality, ESG reporting, IPO preparedness and board accountability. With increasing global scrutiny on corporate governance and investor protection, SEBI’s initiative aligns Indian capital markets more closely with international regulatory standards.

As Indian companies attract greater interest from global investors and expand their footprint, robust disclosure norms become not just a regulatory requirement but a strategic imperative. The revised guidelines mandate proactive, timely and granular disclosure of material events, the adoption of standardized sustainability reporting and stronger oversight from company boards and compliance officers.

Role of Compliance Professionals and Company Secretaries

The role of Company Secretaries (CS) and Chief Compliance Officers has expanded significantly in the wake of this circular. Key responsibilities now include:

Event Surveillance and Escalation: Proactively identifying developments that could qualify as material events and ensuring they are promptly reported.

BRSR Coordination: Working with sustainability, legal and operations teams to compile ESG disclosures for the BRSR.

Board Briefings: Advising the board on potential compliance risks, regulatory changes and stakeholder expectations.

Disclosure Audits: Periodic review of past disclosures to ensure consistency and completeness and preparing for SEBI compliance audits.

Benefits of the Circular

Improved Market Efficiency Enhanced disclosure quality and frequency reduce information asymmetry and allow markets to price securities more efficiently.

Investor Empowerment Retail and institutional investors benefit from clear, accurate and timely information, enabling better investment decisions.

Enhanced Corporate Credibility Companies that voluntarily exceed the disclosure minimums are likely to enjoy reputational benefits, leading to better valuations and easier access to capital.

Alignment with Global Norms By adopting international best practices in sustainability and disclosure, Indian companies position themselves favorably with global investors and regulators.

Strategic Recommendations for Companies

To navigate this new regulatory environment effectively, companies should:

Conduct Materiality Workshops: Train internal teams to assess what qualifies as a material event under the new guidelines.

Appoint ESG Champions: Establish cross-functional teams responsible for compiling, reviewing and enhancing ESG data quality.

Upgrade IT Systems: Implement disclosure management platforms with audit trails, real-time alerts and template-based filings.

Strengthen Internal Controls: Regularly review internal communication channels to ensure that information flows seamlessly from operational teams to compliance officers.

[ujaglobaladvisory]

The Foreign Exchange Management (Overseas Investment) (Amendment) Rules, 2025 represent a significant step in enhancing compliance, transparency, and regulatory oversight concerning India’s outbound investments. Introduced by the Reserve Bank of India (RBI) in collaboration with the Ministry of Finance, these amendments aim to streamline procedures, mitigate risks, and align India’s foreign investment policies with global best practices. As India continues to cement its position as a key player in the global economy, these regulatory changes are crucial to ensuring responsible and efficient overseas investments by Indian entities.

Impact on Indian Businesses and Financial Institutions

The amended rules are expected to have far-reaching implications for Indian corporates, financial institutions, and investors engaging in cross-border transactions. Key anticipated effects include:

Increased Compliance Costs: Businesses will need to invest in stronger compliance mechanisms to meet enhanced due diligence and reporting requirements.

Greater Transparency in Overseas Transactions: Enhanced disclosure norms will improve clarity in cross-border financial dealings, reducing risks of fraud and money laundering.

Stronger Regulatory Oversight: The amendments empower regulators to track overseas investments more effectively, ensuring Indian entities adhere to global financial standards.

Encouragement for Genuine Investments: While compliance measures have been strengthened, the amendment also provides easier approval processes for legitimate investments, particularly in strategic and high-growth sectors.

Future Outlook and Global Integration

As India continues its journey toward becoming a global financial powerhouse, the 2025 amendment to FEMA’s Overseas Investment Rules signifies a strategic move toward responsible investment practices. The regulatory shift aims to balance investment freedom with necessary oversight, ensuring that Indian businesses operate on a level playing field in the global economy.

Going forward, Indian enterprises expanding internationally must align their investment strategies with these regulations to avoid legal complications and financial penalties. The emphasis on due diligence, risk management, and enhanced reporting mechanisms is expected to create a more stable and transparent investment ecosystem, ultimately benefiting businesses, regulators, and investors alike.

[ujaglobaladvisory]

Drone Industry in India

Quick Fact: Indian Drone Industry

The number of manufacturers of drones and unmanned systems is around 250.

In India, the drone ecosystem is regulated by the government through the Directorate General of Civil Aviation (DGCA) under the Ministry of Civil Aviation.

The regulatory authority to oversee and manage drone operations comes from the Aircraft Act, 1934 and the Aircraft Rules, 1937.

Industry estimates indicate that over 3,000 drones are currently used in Indian agriculture, with numbers expected to exceed 7,000 by FY25.

In April 2023, the Ministry of Agriculture introduced standard operating procedures for drone-based pesticide application on 10 crops, such as rice, wheat, cotton and maize.

Government Initiatives

PLI Scheme for Drones and Drone Components

The purpose of this scheme is to encourage domestic production of drones and their components in India, aiming to achieve self-reliance and global competitiveness. The scheme will be implemented over a period of three years.

The total budget allocated for the PLI scheme for drones and drone components is INR 1.2 Bn.

A PLI rate of 20% will be applied to the eligible value addition within India throughout the duration of the scheme.

Namo Drone Didi Scheme

The Namo Drone Didi scheme is a central government initiative focused on empowering women-led Self-Help Groups (SHGs) by providing them with drone technology to deliver agricultural services.

Between 2024-25 and 2025-26, the scheme plans to equip 15,000 selected women SHGs with drones, enabling them to offer rental services for tasks like spraying liquid fertilizers and pesticides to farmers. The scheme provides 80% of the drone cost as a subsidy up to 8 lakhs.

This program is expected to help each SHG earn an additional income of at least INR 1 lakh annually, promoting economic empowerment and sustainable livelihoods.

Ban on Drone Imports

India has completely banned drone imports to promote domestic manufacturing and nurture local talent.

The Civil Aviation Minister emphasized that the ban prevents foreign countries or companies from profiting at India’s expense.

The government aims to encourage young innovators to develop indigenous drone solutions tailored to the country’s specific needs.

[ujaglobaladvisory]

India’s Global Capability Center (GCC) Landscape

Quick Fact: Global Capability Centers in India

India hosts over 1,800 global capability centers (GCC), providing employment to more than 2 million individuals.

These GCCs together contributed INR 5.4 trillion in 2024 and are anticipated to surpass 8.5 trillion by 2030.

Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune and Chennai continue to be the leading hubs for global capability centers.

The Indian government has established special economic zones (SEZs) to facilitate the setup of GCCs, offering companies access to a range of tax incentives and other benefits.

Due to its skilled workforce, 75% of the top 1,000 global R&D centers have established a presence in India.

Union Budget 2025 has introduced a national framework aimed at driving the growth of GCCs in Tier-2 cities.

India is projected to experience a 15-20% increase in non-US companies establishing GCCs in the next two years, with the UK, Germany, Japan and Nordic countries at the forefront of this shift. 

Global Capability Centers Hubs in India

Karnataka Karnataka is a major hub of GCC in India. Bengaluru, a key city, is home to more than 750 GCCs, employing approximately 560,000 professionals. These centers span various sectors, including banking, IT, manufacturing and healthcare, reflecting Bengaluru’s diverse industrial landscape. Prominent multinational companies such as Microsoft, Goldman Sachs and Shell operate large-scale GCCs in the city, driving global innovation and operational efficiency.

Tamil Nadu Tamil Nadu has become a prominent destination for Global Capability Centers (GCCs), hosting over 350 such centers across the state, with more than 300 located in Chennai alone. In addition to Chennai, other cities like Coimbatore, Salem, Madurai, Vellore and Tirunelveli are emerging as viable locations for GCCs, driven by the availability of a large talent pool and supportive local policies.

Gujarat Gujarat is rapidly emerging as a strategic destination for Global Capability Centers (GCCs), bolstered by the state government’s proactive initiatives and the establishment of the Gujarat Global Capability Center Policy 2025–30. This policy aims to position Gujarat as a leading hub for GCCs, offering a conducive environment for multinational companies to set up operations. A notable example is Infineon Technologies, which inaugurated its Global Capability Center in Ahmedabad. Additionally, Google has announced plans to establish a global fintech operations center in GIFT City, Gujarat’s International Financial Services Centre.

Telangana Around Telangana, Hyderabad has become a prominent hub for Global Capability Centers (GCCs), attracting multinational companies across diverse industries. Major companies like Microsoft, which has its largest software development center outside the U.S. and Sanofi, expanding its global capacity center, have established significant operations here. Additionally, Korcomptenz has set up AI-focused R&D hubs in the city.

[ujaglobaladvisory]

India’s Semiconductor Industry

Quick Fact: India’s Semiconductor Industry

The Indian government has allocated INR 760 Bn under the India Semiconductor Mission (ISM) to develop a domestic semiconductor and display manufacturing ecosystem.

India’s semiconductor industry currently represents only 3% of the global market.

India’s semiconductor industry currently employs around 220,000 professionals, with plans to expand the workforce by 1 million jobs by 2026.

As of 2025, women represent 25% of India’s semiconductor workforce, with expectations to rise to 35% by 2030.

Annually, India produces around 600,000 engineering graduates in electronics-related fields.

India allows 100% Foreign Direct Investment (FDI) in electronics manufacturing under the automatic route, except for countries that share a land border with India.

The Indian government offers up to 50% fiscal support for semiconductor fabrication units and has introduced initiatives such as Production Linked Incentive (PLI) and Semiconductor and Display Manufacturing Scheme (SPECS) to foster domestic manufacturing.

India has signed agreements with countries like the USA, Japan and the EU to strengthen its semiconductor supply chain and foster innovation.

Megatrends in Semiconductor Industry

Innovations in Wafer Materials

As the semiconductor industry continues to evolve, new materials are emerging to meet the growing demands of advanced technologies. These materials are crucial for enhancing the performance, efficiency and capabilities of semiconductor devices across various applications.

Silicon (Si): The most common material, used primarily in logic circuits, microprocessors and memory devices due to its moderate electron mobility and availability.

Gallium Arsenide (GaAs): Known for high electron mobility and a direct bandgap, ideal for high-frequency and optoelectronic applications such as RF devices and microwave amplifiers.

Silicon Carbide (SiC): Features a wide bandgap and excellent thermal conductivity, making it suitable for power electronics, electric vehicles and high-temperature industrial applications.

Indium Phosphide (InP): Offers high electron mobility and a direct bandgap, used in high-speed and high-frequency applications like fiber optics and laser technology.

[ujaglobaladvisory]

Telecommunication Industry in India

Quick Fact: India Telecommunication Industry

India is the world’s second-largest telecommunications market.

As of October 2024, India’s total telephone subscriber base stood at 1,188.2 million.

India is expected to reach 350 million 5G subscriptions by 2026.

The total volume of wireless data usage surged more than tenfold, rising from 4,206 petabytes in Q1 of FY18 to 47,629 petabytes in Q2 of FY24.

India holds the second position globally in both international mobile broadband internet traffic and international internet bandwidth.

Indian telecommunication holds the position of the third-highest sector in terms of FDI inflows into the country.

India’s mobile customer base grew at a steady Compound Annual Growth Rate (CAGR) of 2.9% between 2014 and 2024, reflecting consistent expansion in wireless connectivity over the decade.

As of the first half of fiscal 2024, wireless services made up 97.4% of all telecom customers in India, while only 2.6% used wireline services.

During the 5G auction in 2022, the Indian telecom industry spent INR 1,500 billion, with Reliance Jio spending INR 800.8 billion, Bharti Airtel INR 430.4 billion and Vodafone Idea INR 188.0 billion.

The Digital Communication Innovation Square scheme (DCIS) aims to promote research, development, IPR creation, pilot project and manufacturing, to make India a global hub for telecommunication equipment and digital communication services.

The Public Procurement policy mandates giving preference to local suppliers for telecom products, services or works, particularly when adequate local capacity and competition exist.

As per the latest TRAI regulations, telemarketers are prohibited from using mobile numbers starting with the +91 series for promotional calls and messages to curb spam and protect consumers.

Indian Telecommunication Industry: Major Players Outlook

Bharat Sanchar Nigam Limited (BSNL)

Bharat Sanchar Nigam Limited (BSNL) is an Indian central public sector enterprise owned by the Department of Telecommunications, which operates under the Ministry of Communications, Government of India.

Reliance Jio Infocomm Limited

Reliance Jio Infocomm Limited is an Indian telecommunications company and a subsidiary of Jio Platforms, based in Navi Mumbai. It operates a nationwide LTE network covering all 22 telecom circles in India and provides 5G, 4G and 4 G+ services across the country. Jio is also working on developing its 6G service.

Bharti Airtel Limited Bharti Airtel is an Indian multinational telecommunications company and the second-largest mobile network operator in India and globally. It provides a variety of services, including 5G, 4G and fixed-line broadband and operates in 17 countries across South Asia and Africa. Airtel is a part of Bharti Enterprises.

Vodafone Idea Limited (Vi) Vodafone Idea Limited, commonly known as Vi, is an Indian telecommunications company formed through the merger of Vodafone India and Idea Cellular. It is a joint venture between the Aditya Birla Group and Vodafone Group. Vi provides mobile telephony, wireless broadband and internet services across India. The company continues to invest in improving its 4G network and is preparing for future technologies, including 5G.

Others The “Others” category includes various smaller Internet Service Providers (ISPs) and regional operators that collectively contribute to the broadband ecosystem in India. These providers often cater to specific geographic areas or niche markets and include companies offering wired fiber broadband, local wireless solutions and community-based internet services. Though individually smaller in scale, together they hold a notable portion of the market share.

[ujaglobaladvisory]

Overview: Steel Industry in India

In recent years, India’s steel sector has grown rapidly, placing the country among the top steel producers in the world. Today, India is the second-largest producer of steel globally, showing its strong position in the international market and its growing contribution to industrial development. Metals have always played a key role in driving industrial growth and among them, steel is one of the most important. Steel is used both as a basic building material and in the production of many other goods, making it a strong indicator of a country’s economic progress. The steel industry supports several major sectors such as construction, infrastructure, automotive, engineering and defence.

Steel Industry in India

India Steel Industry: Major Players

Tata Steel: Tata Steel ranks among the world’s most diversified integrated steel manufacturers, with a crude steel production capacity of 35 MTPA (Million Tons Per Annum).

Jindal Steel and Power Limited  JSPL is a leading Indian industrial conglomerate with a strong steel, mining and infrastructure footprint. The company delivers high-quality, cost-efficient steel products through backward and forward integration.

Steel Authority of India Limited SAIL, a Central Public Sector Enterprise (CPSE), is India’s largest steel producer, with an annual output of approximately 17.4 million tons of hot metal and 16.1 million tons of crude steel.

Essar SteelIndia Limited – ESIL is an integrated steel producer with an installed steel-making capacity of 9.6 MTPA.

JSW JSW Steel is one of India’s leading manufacturers and exporters of coated steel with a capacity to produce 1.8 MTPA.

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MRO Industry in India

Key Indian Players in MRO Industry

Air India Engineering Services Limited (AIESL)

AIESL is India’s largest MRO service provider, offering comprehensive maintenance, repair, and overhaul services for a wide range of aircraft, including Airbus and Boeing models.

AIESL is certified by DGCA, FAA, EASA, and other International agencies, ensuring compliance with global standards.

The company operates MRO facilities at major airports like Delhi, Mumbai, and Chennai, with services ranging from line maintenance to heavy checks.

GMR Aero Technic (GAT)

GAT operates its MRO facilities at Hyderabad Airport, one of the largest and most advanced MRO hubs in India, offering services for wide-body aircraft like the Airbus A330 and Boeing 777.

GAT leverages state-of-the-art technology, including 3D printing for component repairs and digital diagnostic tools for efficient maintenance.

GMR Aero Technic is focusing on expanding its service offerings and upgrading its facilities to handle next-generation aircraft like the Airbus A350 and Boeing 787.

IndiGo:

IndiGo operates its own MRO facilities in Delhi, Hyderabad, and Gurgaon, handling aircraft maintenance for its fleet of over 250 aircraft.

The airline has focused on reducing its MRO expenses by establishing in-house services, which allow it to maintain its A320 fleet efficiently and economically.

Tata Group

Tata Group is a prominent player in the defence MRO segment, providing maintenance, repair, and overhaul services for military aircraft and helicopters.

Tata Group has a significant partnership with Airbus for the A330 MRTT (Multi-Role Tanker Transport) aircraft maintenance, strengthening its position in the defence and commercial MRO sectors.