Morning Brief: $4 Billion Design Incentive Scheme For Electronics In The Works; Waqf Law Battle Begins In Supreme Court; India's Retail Inflation Hits 67-Month Low; And More

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$4 Billion Design Incentive Scheme For Electronics In The Works

The government is planning to launch a $4 billion Design-Linked Incentive scheme to boost domestic electronics design and reduce reliance on imports. Spanning several years, the scheme will support companies in 30 semiconductor and 30 electronics categories, offering incentives based on capital investment and turnover.

The initiative aims to create a self-reliant ecosystem by encouraging tech innovation, design patents, and local manufacturing of components like modems, wifi chips, EV electronics, and smart meters. A task force report submitted to the Ministry of Electronics and IT is under review, with cabinet approval expected soon.

Waqf Law Battle Begins In Supreme Court

The Supreme Court will today (16 April) hear 73 petitions challenging the constitutional validity of the Waqf (Amendment) Act, including two against the original 1995 Act. A three-judge bench led by Chief Justice Sanjiv Khanna will begin proceedings at 2 pm. Critics argue that the law infringes on fundamental rights and unfairly targets Muslims, while the government says it ensures transparency in managing Waqf properties.

Political leaders from parties like Congress, Trinamool, AIMIM, and AAP are among the petitioners, while seven states have backed the Act in court. The amendment, passed in Parliament and signed into law by President Droupadi Murmu on 5 April, is also under challenge through demands for an interim stay.

India's Retail Inflation Hits 67-Month Low In March

India's retail inflation dropped to a 67-month low of 3.34 per cent in March, down from 3.6 per cent in February, mainly due to a sharp decline in food prices, according to the government. Food inflation fell to 2.69 per cent, the lowest since November 2021, with notable reductions in prices of vegetables, eggs, pulses, meat, fish, cereals, and milk. However, edible oils and fruits saw price hikes, with inflation for these items rising over 17 per cent and 16 per cent, respectively.

Core inflation, excluding food and fuel, remained stable at over 4 per cent, while the fuel and light category exited deflation after 18 months. Economists expect the Reserve Bank of India to continue its accommodative stance, with a potential rate cut in June, as softer CPI inflation provides room for growth support.

Other Developments

In-Person India-US Trade Talks To Begin In Mid-May

India and the US are set to begin face-to-face negotiations in mid-May on their proposed bilateral trade agreement (BTA), following virtual talks expected to start this week. Indian trade officials are hopeful of concluding negotiations for the first tranche of the deal quickly, with a potential visit to the US in the coming month to advance talks.

The US tariffs under the Trump administration may push exporters from countries like China, Vietnam, and Indonesia to redirect their goods to India, while retaliatory Chinese tariffs on US goods could increase the inflow of US agricultural products into India. To manage any potential surge in imports, India has set up an import monitoring cell. Both sides aim to conclude negotiations by September-October.

Italy's Black Shark Torpedo Back In Race For Indian Navy Contract

The Italian 'Black Shark' torpedo, once mired in controversy, is now the leading contender to supply heavyweight torpedoes to the Indian Navy, following Germany's ThyssenKrupp Marine Systems (TKMS) pulling out of the competition. TKMS has reportedly withdrawn from the bid to provide 48 torpedoes for the Navy's Kalvari class submarines, leaving France's Naval Group, which helped build those submarines, as the sole remaining competitor, though its offer may be more expensive than the Italian option.

The Black Shark torpedo had been a frontrunner in 2008-09 for 98 torpedoes, but the project was dropped in 2013 after corruption investigations and a CBI referral, and the torpedo was last tested by India in 2009.

ED Chargesheets Gandhis In Herald Case

The Enforcement Directorate (ED) has filed a chargesheet against Sonia Gandhi, Rahul Gandhi, Sam Pitroda, and others in the National Herald money laundering case. The case involves alleged laundering of Rs 988 crore linked to assets of Associated Journals Limited (AJL), now owned by Young Indian Limited, a company controlled by the Gandhis.

Vadra Questioned By ED In Haryana Land Deal Case

Robert Vadra, husband of Congress MP Priyanka Gandhi, was questioned for six hours by the Enforcement Directorate (ED) on Tuesday in connection with a money laundering case linked to a land deal. He had previously ignored summons but appeared for questioning on Tuesday after a second summon was issued.

Vadra called the investigation a "political vendetta". The case involves a 2008 land transaction where Vadra's company bought land for Rs 7.5 crore and sold it to DLF for Rs 58 crore within months, raising suspicions of illegal gains.

US Blocks Nvidia AI Chip Sales To China

The US government has blocked Nvidia from selling some of its artificial intelligence chips to China without a license and will now require a license for future sales. This move marks the first significant action by President Trump's administration to limit semiconductor exports abroad, threatening to wipe out Nvidia's sales to China.

In response to previous restrictions, Nvidia modified its H100 AI chip in 2022, creating the H20, a version specifically for the Chinese market. However, Nvidia will now take a $5.5 billion revenue charge due to unsellable H20 inventory and related commitments.

From The States

Court Seeks Full Report in MUDA Case Against Siddaramaiah

A special court in Bengaluru has deferred its decision on the ED's challenge to the Lokayukta police’s ‘B Report’ that cleared Chief Minister Siddaramaiah in the MUDA land allotment case. The ED opposed the report, alleging an incomplete investigation into the alleged misuse of power and irregular land allotments.

The court has now directed the Lokayukta police to expand their probe beyond the initial four accused and submit a comprehensive report. It also granted formal permission for the continued investigation and scheduled the next hearing for May 7. The case stems from claims that Siddaramaiah used his official position to secure land allotments in violation of established norms.

Stalin Forms Panel To 'Safeguard' States’ Rights

Tamil Nadu Chief Minister M K Stalin has announced the formation of a committee headed by a retired Supreme Court judge to recommend ways to safeguard states’ autonomy amid growing tensions with the Union government. The BJP and AIADMK opposed the move and walked out of the assembly, while Stalin accused the Centre of encroaching on state powers and disrupting the federal balance.

The panel will examine issues like subjects shifted to the concurrent list and suggest ways to restore state control, drawing on past reports like the 1969 Rajamannar Committee.

Congress Rift Deepens Over Karnataka Caste Survey

The Karnataka caste survey has triggered internal discord within the Congress, with several leaders accusing Chief Minister Siddaramaiah of favouring his Kuruba community through proposed quota changes. The survey pegs OBCs at 69.6 per cent of the state’s population and recommends a 12 per cent quota for Kurubas under a newly created Most Backward Classes category, sparking allegations of preferential treatment.

Vokkaliga and Lingayat leaders, whose population figures were reported lower than earlier estimates, fear reduced political clout despite a slight increase in their reservation. The turmoil comes even as Rahul Gandhi pushes for a national caste census and increased OBC outreach, causing discomfort among some Congress factions.

You’re all caught up—until next time.