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In today’s newsletter:

• Electronics gets Rs 23,000 cr PLI push
• NCLAT softens blow for Google
• Chargebee’s AI M&A spree continues

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The government is doubling down on domestic electronics manufacturing with a Rs 22,919 crore incentive scheme for the component ecosystem. 

The Cabinet has approved a Production-Linked Incentive (PLI) scheme to boost the manufacturing of passive components, capital equipment, and critical electronics used in devices such as mobile phones, servers, desktops, and consumer appliances.

• India aims to double its current 10% value addition in electronics manufacturing within five years, targeting close to 20%

The scheme is structured around three incentives: employee-linked subsidies, capital expenditure (capex) support, and turnover-linked incentives. The initiative is expected to:

• Attract Rs 59,350 crore in investments

• Generate Rs 4.56 lakh crore in production, and create 91,600 direct jobs

The government is pushing for higher domestic value addition (DVA) by integrating Indian firms into global value chains. 

• Electronics production has already grown from Rs 1.90 lakh crore in FY15 to Ra 9.52 lakh crore in FY24, with exports surging at a 20% CAGR

With projections of $300 billion in production by 2026, this scheme could further cement India’s position as an electronics manufacturing hub.

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The National Company Law Appellate Tribunal (NCLAT) just softened the blow for Google in its battle over Play Store policies.

The NCLAT today upheld parts of the Competition Commission of India’s (CCI) October 2022 ruling but cut Google’s penalty from Rs 936.44 crore to Rs 216.7 crore.

• The CCI had earlier imposed a fine on Google for abusing its dominant position with respect to its Play Store policies
  
  
• It also mandated a series of corrective measures to modify the company's app payment policies

The tribunal upheld a few of the CCI's corrective measures while setting aside others. Among the measures that were upheld include:

• Google should allow app developers to use any third-party billing or payment processing service for app sales or in-app purchases

• Google cannot restrict app developers from communicating with their users or direct them outside the Google Play ecosystem to promote their apps and offerings

• Google should not prevent users from accessing or using features and services offered by app developers within their apps

• Google cannot discriminate against other apps facilitating UPI payments in India in favor of its own UPI app

The measures that were set aside include CCI's directive on providing a clear data-sharing policy and imposing any "unfair, unreasonable, discriminatory or disproportionate" conditions on app developers including price-related conditions among others. 

India is among the biggest markets for Google Play in terms of app downloads and users. 

• With over a billion users, it is also a critical region for the future growth of the search giant, especially in its artificial intelligence efforts

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Whether SaaS is “dead” in its current form remains a topic of endless debate, but for now, companies are preparing for an evolving landscape.

SaaS firm Chargebee has acquired Trainn, an AI-first customer tracking platform, according to an internal memo we have seen.

“Joining hands with Trainn…in jointly advancing our shared vision of enabling customers in a rapidly changing and innovative–driven market through the use of AI,” Krish Subramanian, co-founder and CEO, Chargebee said in the memo. 

While Subramanian did not disclose the deal value, it is unlikely to be significant, as Trainn is still in its early stages.

• Founded in 2020, it raised around $700k in its seed round from Speciale Invest  

Interestingly, Trainn was founded by former Chargebee employees—who will now rejoin Chargebee.

This marks Chargebee’s second acquisition in just a month. 

• In March, the Tiger Global-backed firm acquired Inai, a company specialising in payment tracking and management solutions

This comes at a time when industry experts are divided on where the SaaS industry is headed. 

• Freshworks’ Girish Mathrubootham said SaaS in its current form is dead and it’s time for firms to throw away their old SaaS playbook and adopt AI
  

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Despite a looming March 31 deadline, most large merchants are sticking with Juspay.

While payment gateway (PG) companies push for a split, citing a lack of transparency in Juspay’s payment routing engine—especially as it also runs a competing PG—merchants aren’t budging. 

• In fact, many have secured extensions or exemptions from their PG partners.

Dig deeper

• A survey of 475 AI researchers found that 76% believe scaling large language models is unlikely or very unlikely to achieve artificial general intelligence.
  
  
• The European Commission will invest 1.3 billion euros ($1.4 billion) in AI, cybersecurity and digital skills through the Digital Europe Programme for 2025 to 2027. 

Looking for the perfect weekend binge? 

• Mufasa: The Lion King dives into the origins of Mufasa and Taka. Watch it on JioHotstar 

• Then, let Zakir Khan crack you up with Delulu Express. Check it out on Prime Video 

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