Rapid global advancement in artificial intelligence has spurred demand for office space, and AI and robotics companies accounted for 21 per cent of the city’s absorption in the April-June quarter, a report said on Tuesday.

Overall, the IT-ITeS sector, including AI and robotics, accounted for 69 per cent of the city’s absorption in the second quarter (Q2) this year, according to the report by Vestian, an occupier-focused workplace solutions firm.

Bengaluru contributed the highest to pan-India absorption with a 25 per cent share in Q2, followed by Hyderabad and Mumbai at 20 per cent each.

“Despite global geopolitical challenges, India’s office markets reported robust real estate activities during Q2 2024. The quarter has already set the tone for robust leasing and construction activities for the current calendar year,” said Shrinivas Rao, FRICS, CEO, Vestian.

“Flex spaces are also likely to play a pivotal role in the growth of office markets in India,” Rao added.

Pune reported the highest quarterly growth, around 307 per cent, in value terms whereas absorption declined by 48 per cent in Chennai during Q2 2024.

All the cities, except Chennai and Delhi-NCR, reported an increase in absorption on quarter and on year, the report mentioned.

The first half of this year witnessed absorption of over 30 million square feet, registering an uptick of 18 per cent compared to H1 2023.

Bengaluru dominated new completions with a 28 per cent share, closely followed by Mumbai with 27 per cent.

Southern cities (Bengaluru, Chennai and Hyderabad) accounted for 57 per cent of the total new completions reported in Q2 2024.

“Real estate activities are anticipated to increase further on the back of strengthened demand from IT-ITeS and BFSI sectors,” said Rao. AGENCIES

 As the government doubles down on clean and sustainable transportation, the clean mobility ecosystem in the country is expected to become a $250 billion opportunity by FY30, growing at a compound annual growth rate (CAGR) of 38 per cent, a new report said on Tuesday.

By FY30, the overall mobility market in India is expected to reach $1.2 trillion, with clean and electric mobility accounting for about 20 per cent of the overall market, according to the report by Praxis Global Alliance.

“India’s journey towards electrifying its transportation sector is not just a leap towards a sustainable future but also a significant economic opportunity,” said Aryaman Tandon, Managing Partner, mobility, energy and transportation, Praxis Global Alliance.

India has an EV-to-charging station ratio of 9:1. To reach the globally acceptable standard ratio of 4:1, the government has taken multiple initiatives, including significant allocations in FAME II (over $120 million) and the reduction of GST rates on EV chargers.

“Despite challenges faced by the global EV market due to geopolitical shifts and fluctuating manufacturing costs, India remains a beacon of resilience,” the report mentioned.

The country’s strategic positioning, coupled with favourable domestic conditions and a robust policy framework, creates an environment conducive to rapid clean mobility adoption.

According to the findings, India’s emphasis on developing an integrated clean mobility ecosystem not only boosts EV adoption but also fosters innovation in supporting industries, such as charging infrastructure, battery technology, and sustainable supply chains.

“There is significant foreign direct investment (FDI) and private equity investment in this sector, which is a key growth driver,” it added.

By FY30, clean mobility product opportunities are projected to hit $94 billion, with overall penetration rising significantly to 23 per cent.

Mobility services opportunity in India is worth $450 billion in FY24, with more than 80 per cent of the opportunity lying in transportation and logistics services.

According to the report, the software solutions opportunity size is estimated at $0.37 billion in FY24, expected to grow at a CAGR of 27 per cent, reaching $1.58 billion by FY30. AGENCIES

Electric bus (e-bus) sales in India will rise by 75 to 80 per cent on a year-on-year basis due to policy push by government authorities, a report said on Tuesday.

Research firm Crisil Ratings said, “The supply of electric buses (e-buses) in India will surge 75-80 per cent to 6,000-6,500 this fiscal, spurred by increasing deployment via tenders awarded under various schemes for procurement by state transport undertakings (STUs) through the gross cost contract (GCC) model.”

These schemes include Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) (1 and 2), National Electric Bus Programme (NEBP) under Convergence Energy Service Ltd (CESL) (1 and 2), and PM-eBus Sewa Scheme.

The report further said that the government’s push to lower carbon emissions in public transport will drive e-bus adoption.

Gautam Shahi, Director, CRISIL Ratings, said, “E-bus adoption is truly in a sweet spot because the interests of STUs and bus operators are being taken care of under the GCC model, with optimal distribution of risk among stakeholders.”

According to the report, “The surge in e-bus orders will generate economies of scale in production and declining battery costs will lower the purchase price of an e-bus. The benefits of the potential decline in e-bus prices may be passed on to STUs by bus operators, in terms of rentals per km, thus further aiding adoption.”

Pallavi Singh, Associate Director, CRISIL Ratings, said, “Existing strong e-bus orderbook, along with the remaining orders of 7,800 buses to be awarded under the PM e-Bus Sewa Scheme 4 will give a fillip to the sector.

“The government is expected to further augment this scheme, which will continue to support growth of e-bus sales over this and next fiscal.” AGENCIES

 Signalling the growing importance of India for the South Korean giant, Jong-Hee (JH) Han, Vice Chairman, CEO and Head of the Device eXperience (DX) Division at Samsung Electronics, said on Tuesday that the country is one of the biggest and fastest-growing markets globally and offers a huge opportunity for the company.

Han also visited the company’s Noida factory where Samsung manufactures smartphones, tablets and refrigerators, said they are among the first companies to invest in India.

“I am happy that the Noida factory has emerged as one of our biggest facilities, manufacturing not only for India, but for the world,” Han noted.

Han said that India has a large population of tech-savvy young consumers that inspire us to innovate.

“I am proud that many young, enterprising engineers who are playing an important role in the development of AI are working at our R&D centres in India,” he added.

Samsung unveiled its “AI for All” vision — which aims to improve the lives of consumers by bringing artificial intelligence and hyper-connectivity through open collaboration — at the start of the year.

This year, Samsung’s Galaxy AI-powered premium smartphones and Bespoke AI home appliances — such as refrigerators, ACs and washing machines — have together created a unique connected devices ecosystem.

While Samsung is deeply dedicated to its commitment to “Make in India” through its two state-of-the-art manufacturing plants at Noida and Sriperumbudur, it is equally invested in a design centre in Noida and three R&D facilities.

Of the three R&D facilities, which drive innovation for both local and global products, two are located in Noida and one in Bengaluru. AGENCIES

Slamming Leader of Opposition Rahul Gandhi’s reaction to the Union Budget, Union Commerce and Industry Minsiter Piyush Goyal on Tuesday said the country has moved from “Fragile Five” under the UPA government to “Top Five” in the BJP-led NDA government.

Stressing that the UPA government never talked about uplifting the poor, the Union Minister said in the Parliament that the BJP-led NDA government “inherited one of the most fragile economies”.

Attacking Congress leader P. Chidambaram, Minister Goyal said that in 2004, the former Finance Minister had said he “inherited a strong economy”.

“At that time, the growth rate was over eight per cent, inflation was around four per cent, and foreign exchange reserves were robust, compared to the size of the economy at that point of time. What did the UPA do in the 10 years when they were in government?” asked the Commerce Minister.

Minister Goyal said he read 10 speeches of the UPA government and never “once has there been a mention of bringing in a legal guarantee for minimum support price (MSP)” for crops.

“Never once did they speak about trying to uplift the poor by giving them free homes,” the minister added.

India’s ascent from the ‘Fragile Five’ to the fastest-growing major economy has lessons for other developing countries.

The country is now being hailed as the emerging superpower of the 21st century.

India is on track to become the world’s third-largest economy with GDP crossing $5 trillion, and the goal is now to reach a $30 trillion economy by 2047 with a per capita income of $18,000 per annum, according to a key NITI Aayog document. AGENCIES

 Amid growing demand from the manufacturing sector, warehouse transactions across eight primary markets in India were recorded at 23 million square feet in the first half this year, a report showed on Tuesday.

Almost 55 per cent of these transactions occurred in ‘Grade A’ spaces, led by Mumbai which accounted for 20 per cent of the total warehousing volume, according to the report by Knight Frank India.

“Demand from the manufacturing sector has compensated for the lull in e-commerce and helped broad base the market’s occupier profile,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

While the availability of viable land for warehousing development remains a challenge, high institutional interest in this space should enable development of high-quality supply, he added.

Delhi-NCR was the second most prolific market, representing 17 per cent of the total warehousing area transacted during the period, with third-party logistics and manufacturing sectors driving volumes.

Pune was the most expensive warehousing rental market, with average rent at Rs 26 per sq ft a month.

It was followed by Kolkata with a rental rate of Rs 23.8 per sq ft monthly and Mumbai at Rs 23.6 per sq ft a month.

Pune and Chennai showcased a 4 per cent increment in rentals, followed by NCR and Kolkata at 3 per cent YoY growth, said the report.

“India’s robust fiscal position and resilient economy are well-positioned to sustain and enhance the warehousing market’s stability and growth potential for the remainder of fiscal year 2024,” said Baijal.

The country has benefited from the sustained move towards decentralisation of manufacturing capacity with global manufacturing giants such as Apple, Samsung, Foxconn and TSMC expanding their manufacturing base in the country. AGENCIES

 Prime Minister Narendra Modi on Tuesday said that as India is headed to become the third largest economy soon, he was confident that the country will emerge as a global player in the sunrise sectors such as semiconductors, electronics manufacturing and green energy.

Addressing the inaugural session of ‘Journey Towards Viksit Bharat: A Post Union Budget 2024-25 Conference’ at the Vigyan Bhavan here, PM Modi said new opportunities are emerging in sunrise sectors and India Inc. must capitalise on them.

“The whole world is looking at India today. India’s policies and ethics and aims and investment is the basis for progress for the whole world,” the Prime Minister remarked.

PM Modi said that despite global headwinds, India is the only ‘high growth, low inflation’ country in the world in contrast to the “low growth, high inflation” other countries. India’s fiscal prudence is a role model for the world,” he added.

“The world today wants to invest in India, and world leaders are positive about India. This is a golden chance for Indian industry and we must not lose this opportunity,” he told the captains of Indian industry.

“I sincerely believe that industry will help make India a global player in sunrise sectors. A confident India will become a global player,” the Prime Minister said.

“The wealth creators are the driving force for India’s growth story,” he remarked.

Prime Minister Modi pointed out that the last Budget presented by the Manmohan Singh government in 2014 was only Rs 16 lakh crore. Ten years later, the Union Budget 2024 presented by us a few days ago is Rs 48 lakh crore, which is three times the amount.

The Prime Minister said that Budget 2024-25 would strengthen the momentum towards achieving Viksit Bharat.

He pointed out that the Budget would give further impetus to the manufacturing sector with schemes such as the industrial parks being created in 100 big cities with plug-and-play facilities for setting up industries. These parks will emerge as the industrial hubs nationwide powering the country to Viksit Barat.

He also pointed out that MSMEs, which are large creators of jobs, would get a big boost from the budget which had made it easier for them to get working capital and credit loans. Taxes for these small units had also been reduced, he added.

He also said that the country was embarking on a green energy roadmap which includes green hydrogen projects, electric vehicles and nuclear energy. Industry will benefit from our steps on small nuclear reactors, he added.

The Prime Minister said that the government was according high priority to critical minerals and very soon the first phase of bidding for offshore mining blocks would start.

He also said that the PM’s package in the budget was a holistic and comprehensive strategy that would benefit more than 4 crore youth in the country and create a skilled workforce that will be in demand both in India and abroad.

“The budget is focused on skill development, employment keeping in mind industry 4.0,” the PM said.

He highlighted the incentives being offered to the industry under the internship scheme as he urged India Inc. to march shoulder to shoulder with the government towards achieving the goal of Viksit Bharat. AGENCIES

Designed and manufactured in India, telecom equipment are now being exported to over 100 countries, the Centre has informed.

Last year, the country exported telecom equipment and services worth more than $18.2 billion.

“Many of our homegrown telecom companies have made their mark in Western nations, including the US, despite fierce global competition,” said Madhu Arora, Member (Technology), Digital Communications Commission, Department of Telecom.

“The Indian Army has recently integrated its first indigenous chip-based 4G mobile base station, developed by our own R&D firms,” she informed.

Addressing the ‘Defence Sector ICT Conclave’ in the national capital where 18 companies showcased their products, Arora said Information and communications technology (ICT) forms the backbone of defence operations.

“India’s vibrant ICT sector, marked by innovation and integrity, has established a significant presence over the past decades. The Indian ICT industry is providing solutions to the world, showcasing India’s leadership in this domain,” the senior official remarked.

Abhishek Singh, Joint Secretary in the Ministry of External Affairs, said the MEA is actively working to enhance cooperation with Africa in the ICT sector.

“By focusing on emerging technologies like AI and blockchain, we aim to address specific challenges faced by African countries,” he noted.

India has emerged as one of the top five investors in Africa, with cumulative investments of around $75 billion.

Several Indian companies have been instrumental in driving digital transformation across the continent.

According to Sandeep Aggarwal, Immediate Past Chairman, Telecom Equipment & Services Export Promotion Council (TEPC), ICT is critical for maintaining the sovereignty and integrity of India.

India, with its long-standing cooperation and respect for African sovereignty, is a reliable partner in this field.

“Our expertise in data analytics and artificial intelligence empowers our defence forces with predictive insights and actionable intelligence, enhancing decision-making and operational effectiveness in the front,” Aggarwal mentioned. AGENCIES

 India’s spacetech sector witnessed record-breaking funding of $126 million in 2023 — a 7 per cent increase from the $118 million raised in 2022 and a whopping 235 per cent increase from $37.6 million in 2021, a report showed on Tuesday.

In 2024, the year-to-date funding for the sector stands at $10.8 million.

Despite a global slowdown in funding, the spacetech sector has been experiencing an upward trend, driven by substantial government support and significant innovations, according to data provided by market intelligence firm Tracxn.

There are more than 100 spacetech startups, the majority of them being founded in the last five years. The Union Budget’s funding of Rs 1,000 crore is expected to boost the industry significantly, attracting more entrepreneurship and investment in the coming months.

Currently, the country boasts 55 active space assets, including communication, meteorological, and earth observation satellites.

“The significant funding and strategic investments we’re seeing now are setting the stage for India to become a major player in the global space industry,” said Neha Singh, Co-founder of Tracxn.

The combination of solid early-stage funding and supportive government policies will be key to driving this growth and establishing India as a leading centre for space exploration and technology, Singh noted.

In 2023, early-stage rounds attracted $120 million of the total $126 million raised, reflecting a notable growth from $114 million in 2022, which represents a 5 per cent increase.

In 2024, early-stage funding has reached $8.5 million to date.

Seed-stage funding has also seen a significant rise, growing from $4.3 million in 2022 to $5.3 million in 2023, marking a 24 per cent increase.

However, despite this growth in early-stage and seed-stage funding, the nascent ecosystem for private sector participation in Indian Space Tech startups has not yet experienced any late-stage funding, the report said.

Skyroot Aerospace leads as the highest-funded active space tech startup in India, with overall funding of $99.8 million, followed by Pixxel at $71.7 million and Agnikul at $61.5 million.

No other startup in this segment has raised funds above $50 million.

Despite the vibrant funding landscape, no acquisitions have been observed in 2024.

The only acquisition to date is the 2022 purchase of Prakshep, a satellite imagery provider for the agricultural industry, by Arya.

Bengaluru leads the list of top-funded cities in India’s spacetech sector, followed by Hyderabad and Chennai. AGENCIES

In a bid to make 5G accessible to billions of smartphone users worldwide, including in India, leading chip-maker Qualcomm on Tuesday launched Snapdragon 4s Gen 2 mobile platform to re-define the entry-level mobile experience.

The chip will make 5G accessible to over 600 million Indian smartphone users, offering peak download speeds up to 1 Gbps, which is seven times faster than the LTE platforms typically available in the same price tier.

Snapdragon 4s Gen 2 will be initially adopted by key OEMs, including Xiaomi and its other brands, with the first commercial device expected to be announced before the end of the year, said the chip maker.

The new Snapdragon 4s Gen 2 platform offers gigabit 5G connectivity, robust power efficiency for all-day battery life, and skilled camera capabilities.

Chris Patrick, SVP and general manager of mobile handsets, Qualcomm, said they are immensely proud of the engineering teams for their exceptional work in developing a solution that will significantly enhance mobile experiences for millions of people, not only in India but around the globe.”

According to Savi Soin, Senior Vice President and President, Qualcomm India, access to 5G will be a key factor towards furthering India’s journey of digital transformation and securing its presence as a global player.

“With the 5G rollout in India a su”5G can bridge the digital divide, empowering Indians with crucial tools and services in education, government services, healthcare, and payments more reliably and securely, as well as drive India’s Made in India agenda,” said Soin.

Snapdragon 4s Gen 2 will be initially adopted by India’s leading mobile OEM, Xiaomi and its other brands, with the first commercial device expected to be announced before the end of the year.

“We are excited to be working with Qualcomm Technologies to enable access to gigabit-fast connectivity for users across India” said Muralikrishnan B, President, Xiaomi India.

Qualcomm has been at the forefront of innovation in India for the past two decades, contributing significantly to advancements in technology, particularly in fields such as 5G and artificial intelligence (AI).

AGENCIES