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  • Reliance Retail Intends to Open Dark Stores as it is Expanding its Quick Commerce Business

    Realiance Retail, the nation’s foremost retailer, is investing in the expansion of its coverage area by opening dark stores. In the March quarter, the company experienced a 2.4x increase in the number of orders from its rapid commerce/hyperlocal delivery service.

    During the earnings call earlier this week, Reliance Retail’s CFO Dinesh Taluja stated that the company saw a tremendous scale-up in the March quarter, with orders growing by more than 2.4 times. According to Taluja, Reliance Retail is now experiencing very significant traction, as evidenced by a 2.4x increase in daily exit orders from quarter to quarter.

    Additionally, this figure will increase significantly during the next 12 months. Customers continue to respond favourably to the company’s offer of no hidden fees, fast delivery, and no delivery charges; thus, the company is also beginning to aggressively market this offering, as per Taluja.

    Reliance Retail Operates Quick Commerce Through JioMart App

    Reliance’s network of existing stores provides hyper-local deliveries, which are sub-30-minute deliveries, to 4,000 pin codes throughout the country. This network has a significantly greater reach than any other quick commerce participant in the country.

    Reliance Retail offers three different sorts of services, including scheduled and expedited deliveries, through its JioMart app. There is a rapid service that takes less than 30 minutes, a scheduled delivery service with a considerably larger selection, and a subscription service where customers can sign up to have daily items brought to their doorsteps in the early hours of the morning. All three of them are picking up quite nicely, Taluja said.

     He added that, on a year-over-year basis, the average daily orders had increased by 62%. In particular, the brand’s 30-minute or less offering, which has the broadest network coverage. More than 4,000 PIN codes are covered by the company’s nearly 2,000+ networked stores.

    Therefore, compared to other rapid commerce players, this has a far greater reach. JioMart has essentially changed its business strategy to deliver goods in less than 30 minutes.

    New Business Strategy to Expand Network

    Taluja claims that Reliance Retail is utilising its network of stores to deliver within a three-kilometre radius as part of the goal. JioMart will open dark shopfronts in a few niche markets.

    JioMart will also open some dark stores in areas where there is a real need, a sufficient volume, and the company is unable to fulfil it in 30 minutes.

    That’s the rapid commerce aspect of it, then. On a stand-alone basis, the company’s stores have experienced double-digit growth over the past few quarters. Thus, stores are expanding quite quickly as well.

    “We are not seeing that impact either in metro or in any other city,” he stated. In a same vein, Reliance Retail has introduced same-day and next-day delivery in 26 locations for its online fashion firm Ajio.

    “So, we are increasing the speed at which we are able to deliver the products,” he stated. Reliance Retail reported gross revenue of INR 3.30 trillion for the 2024–25 fiscal year, up 7.85%, and profit after tax of INR 12,388 crore, up 11.33%.

  • Shark Tank India Featured Malaki Raises INR 5.7 Crore Led by Venture Catalysts

    The innovative beverage brand, featured on Shark Tank India, will use funds to expand its presence in Quick Commerce, premium hospitality, and scale its patented Crystal Bottle.

    Malaki, an innovative and sustainable premium beverage brand, today announced the successful closing of its Seed funding round, raising INR 5.7 crores. The funding round was led by Venture Catalysts, India’s premier early-stage investor, along with strategic participation from Maarc Ventures & Dadachanji Family Office.

    Founded in 2020 by brothers Mohit and Ashish Bhatia, Malaki rose to prominence with its distinctive brand identity, design-forward detailing, highlighted by its patented Malaki Crystal Bottle.

    This fresh infusion of capital will accelerate Malaki’s expansion into new markets, strengthen its Online presence, amplify its sustainability initiatives, and build a deeper connection with young India’s growing demand for high-quality alternatives to legacy brands

    Commenting on the fundraise, Mohit Bhatia, Co-founder, Malaki said, “Malaki was born from our belief that Indian consumers deserve world-class products crafted by homegrown brands innovating for a new generation. This isn’t just a better drink. It’s a reminder that India can lead, not follow. Invent, not imitate. And taste, without compromise to build the next iconic consumer brand, proudly stocked in every fridge.”

    Ashish Bhatia, Co-founder of Malaki, said, “At Malaki, we’re building a brand that stands for quality, innovation, and purpose. This round not only validates our vision but also equips us to scale faster across the country. With deep roots in a legacy family business, we understand the nuances of building long-term value in F&B, and we’re excited to bring a fresh perspective to hydration.”

    Venture Catalysts, India’s leading early-stage investment platform, has previously supported prominent consumer startups like Beardo, Pee Safe, and BharatPe.

    Commenting on their investment, Dr. Apoorva Ranjan Sharma, Co-founder, Venture Catalysts, remarked, “Malaki exemplifies innovation and sustainability in a rapidly growing premium beverage market. We believe strongly in the founders’ capabilities and see tremendous growth potential in their vision to create India’s next big consumer brand.”

    Additionally, Akshat Chhabra, Director, Maarc Ventures, said, “From our first interactions, it was clear that Ashish and Mohit have the passion and long-term vision to build something truly enduring. We believed in their conviction and were keen to support them and the Malaki team.”

    Malaki has established an impressive footprint with over 500 premium HORECA outlets, partnering with leading hospitality brands such as Singapore Airlines, Ritz-Carlton, Hyatt and has rapidly built an impressive footprint across premium hospitality chains (HORECA) in Mumbai, Pune, and Goa. It is now gearing up to launch in major metro markets including Delhi NCR, Hyderabad, Jaipur, and Bengaluru. The company plans to leverage this funding to significantly enhance distribution channels and expand consumer reach through digital commerce.

    The Indian premium beverage market is projected to grow exponentially, driven by increasing consumer preference for premium, healthier alternatives and sustainability. With strategic backing from esteemed investors and industry veterans, Malaki is poised to become a dominant player in this thriving market.

    About Malaki

    Malaki, founded by entrepreneurs Mohit and Ashish Bhatia, offers a premium range of beverages designed for new-age, health-conscious consumers. The brand combines global beverage trends with sustainable practices, offering high-quality products packaged in sustainable glass bottles. The brand portfolio includes tonic waters, alkaline waters, sparkling waters, and ginger ales. Malaki aims to elevate the beverage experience for consumers, focusing on both taste and responsibility.

    About Venture Catalysts

    Venture Catalysts is India’s first integrated incubator. It typically invests $250K – $2 Mn in early-stage start-ups with the potential to create enduring value for a long period of time. Founded in 2016 by Dr Apoorva Ranjan Sharma, Anuj Golecha, Anil Jain and Gaurav Jain, Venture Catalysts has invested in over 300+ startups since inception. The cumulative valuation of the startups invested by Venture Catalysts is $10 billion+. Venture Catalysts has a presence across 55 cities in 9 countries and is one of the most active early-stage investors globally.

    From Pre-seed to Late Stage Funding – Sources of Every Funding Stage
    As the business grows, it requires funding for expansions and research. There are different stages of funding that respond to the different needs of a growing business.
    StartupTalkyKinnary Nensee

  • Internal Crisis Claims Shake Zomato, CEO Deepinder Goyal Rubbishes Allegations

    A post on Reddit from an anonymous source who claims to be an employee of Zomato, has stirred up quite a bit of controversy. It alleges that Zomato is in crisis and that the popular food delivery platform is steadily losing ground to competitors like Zepto Cafe and Swiggy. The post also mentions an internal edict that supposedly requires Zomato employees to place at least seven orders a month from Zomato and that there are apparently systems in place to monitor and enforce this directive. The post added that Zomato employees are discouraged from ordering from rival platforms, especially if they happen to be within the Zomato office. Alongside all this, the post paints a picture of a toxic work culture at Zomato, one in which leadership seems to come and go suddenly and one in which both employees and partners (restaurants) seem to be rather dissatisfied.

    CEO Deepinder Goyal Dismisses Allegations

    Zomato’s CEO Deepinder Goyal very promptly pushed back against the viral post, calling it complete nonsense. On the social media platform X, Goyal countered that Zomato does not require its employees to order food from the company and certainly allows them the freedom to make such decisions, or not, as they please.

    “All of this is utter nonsense,” Goyal said on X. “Neither are we losing market share, nor will we ever force our employees to order on Zomato. Freedom of choice is something we stand for vehemently.”

    Signs of Pressure Amidst Slowing Growth

    Although Zomato’s leadership denies that an internal crisis exists, the company is confronting external difficulties. Its most recent financial results showed lackluster growth in the December quarter, which is usually a peak season for the industry. Zomato’s Gross Order Value (GOV) increased only 2% sequentially to INR 9,913 crore, even as the year-on-year rise stood at 17%. Despite this, Zomato’s main rival, Swiggy, appears to be increasing its market share slightly and now has 43%. All of this suggests that Zomato’s growth troubles are real but perhaps not as dire as the whistleblower alleges.

    Contentious as they may be, Goyal’s assurances firmly establish Zomato’s objective of keeping operational stability and trust with its various stakeholders. The company appears to be keeping a strong focus on maintaining even its operational objectives, appearing clear to avoid cutting deep into the employee base. Zomato will need to keep holding all those necessary stakeholder relationships for them to be able to pivot into the even more important growth and profitability phase that they have been missing since they listed.

  • Foreign Investors Renew Faith in Indian Equities with INR 17,425 Crore Boost

    This past week saw fresh enthusiasm from foreign portfolio investors for Indian equities, as they pumped in a fresh INR 17,425 crore between April 21 and April 25. This was much higher than the nearly INR 8,500 crore they had infused in the previous week, which was cut short due to a holiday. What capped off this FPI euphoria last week was a strong indication from the US Federal Reserve that detrimental rate hikes were off the table for the time being. A stable US dollar coupled with easing international trade tensions has made investors much more amenable to the risk associated with emerging markets like India.

    Domestic Strength Adds to the Momentum

    The economic landscape of India has played a very critical role in the attraction of foreign funds. The analysts indicate that the solid growth prospects of India, together with a notable softening in the temper of inflation, and the early projections of an above-normal monsoon, are all terrific confidence boosters. And of course, if you aggregate all of that, it positions India as a much safer and far more promising investment destination compared to a number of global peer countries. And so, this becomes a very potent narrative for foreign investor attraction to India.

    Early Month Outflows Still Weigh on Sentiment

    Yet the overall picture for April is not so rosy. From depository data, we know that FPIs have pulled out ₹5,678 crore from Indian equities in the month leading up to April 26. This was not just a one-off occurrence occurring on a few specific days; the selling was largely consistent from start to late April.

    Day-to-day selling was so much in excess of buying that we saw domestic equity benchmarks drop consistently on most trading days during that stretch. FPIs could not have pulled out that much money with just a few days of strong selling; this was a prolonged act of selling that affected multiple days and multiple businesses. Overall, domestic equity benchmarks dropped by a handful of percentage points during that span.

    Investment strategists say that two key shifts have happened to bring foreign investment back into Indian markets. One is a softening US dollar, which has come down from a high of 111 in January to about 99 now. The other is the expectation that economic growth in the US will slow down and consequently impact corporate earnings there, whereas India is looking very solid with a growth above 6%. If these two trends hold, foreign investment will continue to trickle into the Indian market and sustain the run that the market is on.

  • Centre Launches ECMS Portal to Boost Domestic Electronics Manufacturing

    The Electronics Component Manufacturing Scheme (ECMS), along with its dedicated portal, has been launched by the government. The Union Minister for Electronics and Information Technology Ashwini Vaishnaw introduced the scheme with a promise of attracting huge domestic and international investments.

    The scheme was approved earlier by the Union Cabinet and is aimed at building robust manufacturing capacities. It seeks to deepen India’s integration into global value chains. In a very real sense, it seeks to put electronics production back in India and make India a hub for it.

    Industry Growth Sets the Stage

    At the launch event, Vaishnaw emphasized the incredible growth curve India has shown in electronics manufacturing. Over the last few years, the sector has seen production increase five times, and exports have surged six times, with both figures achieving compound annual growth rates of more than 17% and 20%, respectively. Major contributors to this upward trend are sectors like mobile phones, servers, laptops, and IT hardware. According to Vaishnaw, the electronics industry is poised to grow even faster now, thanks to the friendly government initiatives and the rising investor confidence that has come in recent months.

    ECMS to Fuel Broad-Based Industrial Growth

    Union Minister Ashwini Vaishnaw described the ECMS as a “horizontal scheme” whose reach would go far beyond the electronics sector and benefit many others, particularly those involved in industrial production, power, and automotive manufacturing. He noted that a comprehensive, resilient electronics manufacturing ecosystem is emerging across India and voiced his confidence in the industry’s capabilities. ECMS would play a big part in achieving this, he said.

    The minister stressed that without a focus on innovation, quality couldn’t be achieved. He noted that many of the firms involved in the electronics sector have set up design teams that he believes must accompany any serious conversation about achieving the quality that ought to be a hallmark of the products coming out of the electronics sector. He made clear that achieving Six Sigma must become the norm. With regard to electronics manufacturing in India, the minister voiced optimism about the diversification of knowledge.

    A Digital Future Fueled by Innovation

    Launched along with broader initiatives to place India at the forefront of tectonic advancements in technology, the Electronics Component Manufacturing Scheme (ECMS) could make the country a major global player when it comes to the electronic gadgetry on which our modern lives depend.

    The scheme, which will invest INR 23,000 crore in push subsidies over six years, will stabilize the component supply chain and is likely to attract global players into an India that aspires to a share in the massive electronics market. In promising to splurge on semiconductors, we now have, in push and pull terms, a national-level strategy to establish the semiconductor value chain inside India.

  • How IIT Madras Turned 29 Lakh Bet into 50 Crore Ather Energy Windfall

    Not many will celebrate as quietly yet as triumphantly as IIT Madras when Ather Energy hits the stock market this week. Through its investment arms,  the IIT Madras Incubation Cell and the IITM Rural Technology and Business Incubator,  the institute transformed an early investment of just INR 15–29 lakh into a stake now worth about INR 50 crore. That’s a return of nearly 172x to 333x over 11 years, a number that would make the most seasoned venture capitalists envious.

    A Deep-Rooted Culture of Innovation

    The early support of Ather Energy is not an isolated instance for IIT Madras. With a portfolio of 351 deep tech startups pegged at around INR 45,000 crores by the end of 2023, IITMIC has established itself as a player to watch in India’s entrepreneurial scene. More interestingly, funded by IITMIC, all of these startups have a survival rate of about 80%, that is, when you consider the industry average for startups, which is around 4% to 6%.

    Ather Energy’s public listing is set to benefit more than just IIT Madras. Tiger Global, which invested in 2015, stands to earn 8.3x returns through its Internet Fund Pte by divesting about four lakh shares. Other backers, Singapore’s GIC and India’s National Investment and Infrastructure Fund (NIIF), are looking at returns of 1.6x and 1.7x, respectively. Overall, this is a good outcome for Ather’s investors, and it speaks well of their confidence in both Ather and the Indian electric vehicle (EV) sector.

    EV Sector Faces New Challenges

    While investors are elated over the recent gains, it is prudent to keep a level head and focus on the fundamentals of the EV industry and the sizable challenges it faces, some of which we have touched on before. The price of lithium and cobalt, for instance, can only go up if the domestic lithium and cobalt mining business is as environmentally unfriendly as the same business abroad. EV batteries need these minerals, the prices of which are quite unstable. Also, domestic supply chains for EV mineral and battery production are underbuilt, meaning OEMs must rely more on an EV supply chain from China, which is even more worrisome since many Chinese manufacturers have a serious problem with enforcing labor rights and protecting the environment.

    Despite the increasing popularity of EV scooters, this mode of transport still battles some unforgiving issues. A major problem is that of charging infrastructure. Public charging stations are still few and far between, especially beyond urban centers, and that makes anything other than a short, local trip a challenge. Another challenge is high up-front expenditure relative to conventional petrol two-wheelers, despite lower long-term running costs. Consumers are often reticent to put down money without clear assurances of cost-benefit payback. Additionally, some low-cost EV models of sub-optimum quality and reliability are affecting the level of public trust.

  • IndusInd Bank Faces INR 1,960 Crore Loss, Reshuffles Leadership to Bolster Accountability

    IndusInd Bank has resolved to completely take on the loss of INR 1,959.98 crore for its quarter ending March 2025. This decision stems directly from the outcome of an independent investigation into the bank’s derivatives portfolio. The investigation found a number of significant internal accounting problems, the most critical of which involved the premature termination of derivative contracts. Those problems led the bank to record notional profits, which in turn distorted its financial position. After receiving the final report on April 26, the board acted quickly to ensure that the bank’s FY25 full-year financial statements reflected the true nature of the discrepancies.

    Accountability Measures and Leadership Reorganization

    In a response to the probe’s findings, IndusInd Bank announced it will take stringent actions against employees who are found to be responsible for the lapses and will re-organize senior management roles. The realignment is aimed at not just strengthening internal oversight but also restoring trust among all stakeholders.

    The troubles at IndusInd Bank began with derivatives-related losses but quickly escalated. In April 2025, when auditors from EY began an in-depth review of the bank’s books, several gaping holes came to light. Using metrics not seen since the 2008 financial crisis, EY’s examiners found that the bank was something like 60% overcapitalized. And as they dug deep into the numbers, a previously unapprehend disaster unfolded. The bank’s books had been so badly cooked that the actual level of its capital was far beneath the regulatory minimum.

    Operational Pressures Add to Headwinds

    IndusInd Bank was struggling with accounting problems, but that wasn’t all. When the bank released its Q4 FY25 business update, it not only bombarded investors with a bunch of accounting issues and alleged it was fixing them, the way the Bank of Baroda and the Punjab National Bank have also done in the past, but it also revealed operational challenges in the form of a big miss on net advances. For instance, the bank’s net advances shrank 5.2% quarter-on-quarter (QoQ) to INR 3,47,933 crore (as of the end of March) largely due to a steep contraction in the corporate banking portfolio.

    Meanwhile, while total deposits grew a modest 0.4% over the quarter, in line with the bank’s reduced ability to generate net advances, the bank’s CASA ratio dropped to 32.8% from 37.9% a year earlier, spotlighting weakening deposit franchise strength. As a result, not only are the bank’s customers losing confidence in it, but also the entities who are supposed to keep the bank’s CASA strong.

  • Bizongo Under Fresh Scrutiny as Auditors Flag Potential Financial Fraud, Board Launches Investigation

    B2B e-commerce marketplace Bizongo is under heightened scrutiny after auditors flagged concerns over financial irregularities. Once seen as a rising star in India’s startup ecosystem, Bizongo is now navigating governance challenges, leadership transitions, and creditor pressure. The company’s board has launched a fresh investigation into the matter, raising questions about corporate governance and financial controls in India’s fast-growing startup ecosystem. Major investors, including Accel, Chiratae Ventures, B Capital, and the International Finance Corporation (IFC), are overseeing the developments.

    Auditors Raise Red Flags

    In January 2025, Bizongo’s statutory auditors, BSR & Co. LLP, flagged potential irregularities in the company’s FY24 financials, Moneycontrol reported, citing internal communications and regulatory filings. The auditor’s report pointed to questionable vendor-customer relationships, duplicate entities sharing addresses, and missing Proof of Delivery (POD) documents.

    Although the auditors did not directly conclude fraud, they recommended an independent investigation to verify the authenticity of the transactions. Following this, Bizongo’s board initiated a fresh investigation to ensure all aspects of the flagged issues were thoroughly examined. The company engaged PwC to assist with the forensic review.

    The fresh concerns reignite scrutiny around a previous fraud incident discovered in April 2024. At the time, Bizongo found that a mid-level finance employee had allegedly defrauded the company of over INR 21 crore through fictitious transactions. This was linked to Bizongo’s now-discontinued supply chain financing vertical.

    Bizongo had filed a police complaint with the Economic Offences Wing (EOW), leading to an FIR against the former employee. Initially, the company maintained that the fraud was restricted to the shuttered unit. However, the latest auditor findings have raised concerns about the strength of Bizongo’s overall governance.

    Leadership Changes and Business Realignment

    Amid these challenges, Bizongo has undergone significant leadership restructuring. In March 2025, co-founder and CEO Sachin Agarwal stepped down and moved to a board role. Former Flipkart executive Prahalad Krishnamurthi was appointed as the new group CEO. Gaurav Singhania assumed the role of CFO, and Gulshan Kaushik became Chief Business Officer. New heads for technology and financing businesses were also brought in.

    Investor-appointed board members, including representatives from Chiratae Ventures and B Capital, resigned during the governance overhaul.

    In response to the turmoil, Bizongo shut down its supply chain financing vertical in September 2024 and pivoted its focus to two new business lines: BizongoBuy, catering to raw material procurement, and BizongoFin, offering financial services to SMEs.

    The company claims that following these changes, it has achieved 100% compliance in its operations.

    Mounting Creditor Pressure

    Separately, Bizongo is facing pressure from creditors over pending dues. Although the company claims to have reduced its debt from INR 1,000 crore to around INR 100 crore, Moneycontrol reported that some lenders are exploring legal options to recover the remaining amounts.

    Future Outlook

    Founded in 2015, Bizongo has raised over $334 million from investors such as Accel, Tiger Global, B Capital, and Chiratae Ventures. It was last valued at $980 million in October 2023.

    The company aims to complete its FY24 audit by the end of April 2025. Bizongo has stated that it is taking the necessary time to ensure all disclosures are complete and compliant, given the scale of its internal restructuring.

    With governance issues affecting many Indian startups, Bizongo’s future depends on the outcome of its ongoing investigations and its ability to rebuild trust with lenders and investors.

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  • Ghazal Alagh Breaks the Tug-of-War Myth: How Kid-Time Teaches Boardroom Brilliance

    Ghazal Alagh, Co-founder and Chief Innovation Officer of Mamaearth, has never shied away from sharing her entrepreneurial journey, one that’s deeply intertwined with her identity as a mother and a woman in leadership. Through her honest LinkedIn posts, Ghazal has been sharing lessons from her personal journey, showcasing how motherhood and entrepreneurship are not opposing forces but powerful allies.

    Blending Business with Bedtime

    One of her recent reflections struck a chord with many. She shared how, at 11 pm, while finishing a strategy deck, her younger child asked for a spontaneous bedtime story. Without hesitation, she paused the entrepreneur in her and embraced the “mum” role, complete with stuffed toys and silly voices.

    “Storytime taught me patience and creativity, which I carry into the boardroom. And being an entrepreneur taught me problem-solving – handy when you’re figuring out how to get a toddler to sleep,” shared Ghazal.

    In the past, she admits she might’ve felt torn between work and home. But today, she views both roles as supporting and enriching to one another. The patience and empathy built through parenting translate into stronger leadership. Similarly, the resilience and quick thinking honed in business? Equally handy at bedtime.



    Overcoming Bias & Owning Her Role

    This wasn’t always the case. In an earlier post, Ghazal opened up about the early days of becoming a leader. A 20-something woman with a newborn at home and a brand-new company, everything was new to her. In her post, she shared that she even overheard that some employees had quit because they didn’t want to report to a young, inexperienced woman founder.

    “Am I too young? Too inexperienced?” she had asked herself.

    That moment brought on a wave of impostor syndrome, but she didn’t let it define her. Instead, she chose to let her work speak louder than others’ doubts. She learnt every aspect of her business, walked into meetings with confidence, and, most importantly, embraced her identity as a woman leader and mompreneur.

    “Fast forward to a few years later, some of those very people who left actually reapplied to our company, and this time they had no issues reporting to me. Life has a funny way of coming full circle.”

    One Rich, Crazy, Beautiful Life

    What ties both stories together is a powerful message: we’re not balancing two lives, we’re living one rich, messy, beautiful life. And yes, it takes a strong support system, including family, mentors, co-founders, and a team to make it work.

    “To any woman facing bias: I see you. I can’t promise it gets better, but I can promise it’s all worth it,” Ghazal highlighted.

    Ghazal’s honesty reminds us that every stereotype shattered, every challenge overcome, makes the journey a bit easier for the next generation of leaders.

    To the parent-preneurs, young founders, and women in leadership, keep going. Because, as Ghazal says, “the best revenge is massive success.”

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  • After US Tariff Clarity, the Centre May Modify EV Manufacturing Policy

    According to reports, the Centre is willing to change its Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) in light of the results of previous free trade agreements and the Bilateral Trade Agreement (BTA) with the United States. The March 2024 announcement of SMEC has not yet been implemented.

     The plan allows authorised EV manufacturers to establish production plants in India for EV four-wheelers with a $500 million minimum expenditure. The programme also imposes a 15% tariff charge on imported EVs.

    The government may change the policy to draw in international manufacturing companies if the BTA talks result in 15% import auto tariffs and targeted investment amounts, according to a media report.

    India and US in Discussion Regarding Proposed BTA

    The planned BTA, which will cover tariffs, non-tariff barriers, and customs facilitation, is presently being discussed between the US and India. In order to facilitate trade, both nations will be expected to reduce or do away with customs tariffs if the agreement is implemented.

    In addition, India is negotiating free trade agreements with a number of nations, including Belgium, Norway, and the United Kingdom.

    Main Goals of the SMEC

    The SMEC programme seeks to entice international EV producers to put money into India’s expanding EV sector.”

    The initiative would also help place India on the world map for manufacturing EVs, generate employment, and meet the goal of “Make in India”, the government had stated when the scheme was announced last year.

    In addition to minimum investment amounts and import tariff rates, the programme mandates that manufacturing facilities achieve a minimum domestic value addition (DVA) of 25% and be operational within three years of the Ministry of Heavy Industries’ (MHI) approval date. After the facility is set up, the corporation should reach 50% DVA in 5 years.

    Even though the programme is gaining popularity worldwide, industry titans like VinFast and Tesla continue to struggle with India’s high EV import tariffs.

    Tesla’s CEO Taneja India’s Current Tariff a Major Roadblock

    The current tariff structure in India, according to Tesla’s CFO Vaibhav Taneja, is a barrier to the company’s entry into the Indian market.

    It is important to remember that imported cars valued at more than $40,000 (more than INR 34 lakh) CIF (cost, insurance, and goods) are subject to a 100% tariff in India. Additionally, by the end of June this year, Vietnamese EV giant VinFast plans to build its India unit in Tamil Nadu.

     With an initial commitment of $500 million over the first five years, this plant is a component of VinFast’s $2 billion investment in the nation.