South Asia Supply Chain

South Asia Supply Chain

Uttar Pradesh Cuts Logistics Costs via Freight Corridor Pact

Invest UP and DFCCIL have inked a three-year MoU to cut logistics costs in Uttar Pradesh by leveraging the Dedicated Freight Corridor. The pact includes joint action plans, PM Gati Shakti portal integration, and industry engagement to attract manufacturing and logistics investments. Key policies referenced include the UP Industrial Investment and Employment Promotion Policy 2022 and the UP Warehousing and Logistics Policy 2022. Uttar Pradesh contributes 8.5% to India's GDP and hosts 17% of its population — making rail-driven efficiency gains critical for global supply chain resilience.

2026-08-20

South Asia Supply Chain

India on track for record 50 GW solar year as ALMM-II mandate reshapes domestic supply chain

According to Wood Mackenzie, India is on track to commission more solar capacity in 2026 than in any year in its installation history. However, the policy driving this surge is simultaneously creating a supply crunch that will push system prices significantly higher. Installations surge ahead of deadline India added 34 GW dc of solar capacity […]

2026-08-15

South Asia Supply Chain

India targets 12 sectors to expand global manufacturing share

According to theprint.in, a new report released by the NITI Aayog identifies twelve key manufacturing sectors where India can expand its global footprint, aiming to reverse decades of stagnant market share growth compared to China. Stagnant Market Share vs China’s Dominance India’s share in global manufacturing value grew from about 1.5 percent in 1995 to […]

2026-08-14

South Asia Supply Chain

India launches polysilicon incentive scheme targeting 10 GW capacity

India is launching a new production-linked incentive scheme targeting more than 10 GW of domestic polysilicon capacity to break its 100% reliance on Chinese imports. The move extends ₹240 billion ($2.52 billion) in existing solar manufacturing incentives upstream, complementing over 200 GW of module capacity and a June 2028 target of 80 GW for ingots and wafers. With polysilicon also vital for semiconductors, the policy supports dual industrial goals. However, capital intensity and Chinese scale dominance pose major competitiveness hurdles.

2026-08-09

South Asia Supply Chain

Japan’s 7.1-magnitude quake halts Toyota, Renesas, TSMC plants in Kumamoto

A 7.1-magnitude earthquake hit Kumamoto Prefecture in Japan on July 28, 2026, forcing Toyota to halt production at three Kyushu plants — Miyata, Kanda, and Kokura — through July 31. The Miyata plant alone produces 430,000 vehicles annually. Renesas suspended operations at two Kumamoto fabs due to structural damage, while TSMC evacuated staff at its JASM facility before confirming structural safety and beginning gradual restart. Honda extended its Kumamoto motorcycle plant suspension to July 31; Sony halted semiconductor operations in Kumamoto but found no major damage in Nagasaki, Oita, or Kagoshima. Nissan kept its Fukuoka plant running but is closely monitoring supplier networks. Kyushu accounts for ~12% of Japan’s auto component output and >30% of domestic semiconductor wafer production.

2026-07-30

South Asia Supply Chain

India-US ink $20B critical minerals pact amid China dominance concerns

India and the U.S. signed a critical minerals framework on May 26, 2026, paving the way for a $20 billion Quad-led investment initiative. While India holds vast reserves—including the world’s third-largest ilmenite deposits—it processes less than 5% of its rare earth output domestically. Analysts stress India is unlikely to challenge China’s dominance—accounting for over 60% of global rare earth processing—anytime soon due to infrastructure gaps and regulatory delays averaging 7–10 years for new mining approvals.

2026-07-29

South Asia Supply Chain

Apple supply chain leak undermines India’s manufacturing push

A recent Apple supply chain data leak in India has undermined confidence in the country’s manufacturing ambitions, while China deepens mineral partnerships in Indonesia — securing over 65% of its refined nickel exports. The incident highlights growing scrutiny of data governance in nearshoring decisions. Since 2020, Indonesia’s nickel export ban has spurred $30 billion in FDI, with China accounting for more than half. India aims to expand iPhone production to five hubs by 2026, but trust deficits now rival cost advantages. Seven new China–Indonesia mineral MOUs were signed since early 2024.

2026-07-28

South Asia Supply Chain

US imposes 10% forced labour tariffs on India’s 70% of exports

The U.S. has imposed permanent 10% Section 301 tariffs on roughly 70% of India’s exports—including textiles, engineering goods, gems and jewellery—effective July 2026. India’s recent forced labour import ban secured its placement in the lower 10% tier, avoiding a proposed 12.5% rate. Seventeen countries, including Bangladesh, Canada, Indonesia, and the UK, share this 10% rate. An additional 8% of Indian exports face 25% or 50% Section 232 tariffs on steel, aluminium, and auto parts. Industry responses are split: export groups cite competitive parity with peers, while gem and jewellery leaders warn of margin erosion in the U.S. market.

2026-07-27

South Asia Supply Chain

Indian Railways approves ₹440 crore third line to boost eastern freight capacity

Indian Railways has approved a ₹440 crore project to construct a 14.52-km third railway line between Nimpura West Outer Cabin and Midnapur in the South Eastern Railway zone. Located on the High Utilisation Network (HUN-2), the corridor currently handles 23.80 million tonnes per annum of freight at 115.71% capacity utilisation. The upgrade is expected to add 3.52 MTPA of freight capacity, easing congestion for manganese, iron ore, coal, steel, and other essential commodities. The initiative supports India’s goal to raise rail’s freight modal share to 45% by 2030.

2026-07-26

South Asia Supply Chain

India, Panama ink maritime pact on digital ports, green ship recycling

India and Panama have launched a strategic maritime partnership focused on digital port infrastructure, green ship recycling, and logistics modernization. On July 23, 2026, Union Minister Sarbananda Sonowal and Panama’s Foreign Minister Javier Martínez-Acha Vásquez identified four priority areas: maritime security, technical collaboration between DG Shipping and the Panama Maritime Authority, seafarer skilling, and AI-powered smart port systems. The initiative builds on a maritime relationship dating to the 19th century and positions Panama as India’s gateway to Latin America and the Caribbean. Joint efforts will include bilateral agreement negotiations, port modernisation, and participation in India Maritime Week 2026.

2026-07-24

South Asia Supply Chain

India Launches ISM 2.0 with Focus on Chip Equipment, Gases, Materials

India’s Union Cabinet has approved ISM 2.0, a ₹15,000 crore ($1.8 billion) semiconductor initiative focused on domestic production of chip-making equipment, specialty materials, and process gases. Unlike the first phase — which targeted fabs and packaging units — ISM 2.0 mandates 35% indigenous content within three years and allocates 40% of funds to upstream enablers. Industry stakeholders stress that success hinges on cutting gas-cylinder customs clearance from 90 to 14 days and scaling India’s sole semiconductor-grade quartz facility, currently operating at 12% capacity. The plan targets Bengaluru, Hyderabad, and Chennai as priority clusters.

2026-07-20

South Asia Supply Chain

China’s Africa imports surge 40.2% in June amid zero-tariff expansion

China’s imports from Africa rose 21.1% year-on-year in May and 40.2% in June 2026 after Beijing expanded its zero-tariff policy across the continent. Unwrought copper imports surged over 110% to US$1.65 billion, rhodium powder imports nearly quintupled to US$125 million, and crude oil imports hit US$3.11 billion — Africa’s top export category to China. The policy now covers 98% of tariff lines for 33 African LDCs, effective 1 May 2026, and has enabled market access for over 30 new African agricultural products.

2026-07-18