{"id":86027,"date":"2026-01-07T00:00:00","date_gmt":"2026-01-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/?p=86027"},"modified":"2026-01-07T10:30:52","modified_gmt":"2026-01-07T10:30:52","slug":"uttar-pradesh-has-a-fab-offer-a-cheaper-india-entry-point-for-semiconductors-3","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2026\/01\/07\/uttar-pradesh-has-a-fab-offer-a-cheaper-india-entry-point-for-semiconductors-3\/","title":{"rendered":"Uttar Pradesh has a \u2018fab\u2019 offer: A cheaper India entry point for semiconductors"},"content":{"rendered":"

Good afternoon, friends. <\/strong>India\u2019s macro story is holding its stride, but the oil map beneath it is shifting.<\/p>\n

The big story today:<\/strong> Indian refiners are bracing for a sharp drop in Russian crude as US pressure mounts. We spoke to an industry expert to understand what the loss of sanctioned barrels means \u2014 and why Middle East producers are poised to gain \u2014 just as Reliance denies claims of receiving fresh Russian cargoes in January.<\/p>\n

ALSO-<\/strong> India is set to lap Gulf peers on growth, with GDP projected at 6.9% in FY 2027. Tax cuts, trade pacts, and domestic buffers will cushion the blow from global headwinds. In other macro news, services momentum cooled in December and inflation is tamed, for now.<\/p>\n

All of that and more, below.<\/p>\n

Watch this space <\/p>\n

<\/a> TRADE \u2014 <\/strong>State<\/strong> Bank of India (SBI), the sole Indian <\/strong>bank operating in Israel, has secured approval to settle bilateral trade with Israel in INR<\/strong>, Press Trust of India<\/a> reports. Using the Special INR Vostro Account mechanism \u2014 the same architecture established with the UAE in 2023 \u2014 Israeli exporters can now receive direct payments in INR, effectively bypassing the USD for cross-border transactions.<\/strong><\/p>\n

This mirrors the INR settlement architecture already in place with the UAE<\/strong>, with India looking to push for a standardized INR corridor across its key MENA partners. With over 40k Indian workers in Israel, SBI is streamlining INR accounts to capture the flow of remittances.<\/p>\n

An FTA catalyst:<\/strong> This precedes a high-stakes freetrade agreement between India and Israel, negotiations<\/a> for which will take place later this month. <\/p>\n

\n

\n

<\/a> SEMICONDUCTORS \u2014<\/strong> The northern state of <\/strong>Uttar<\/strong> Pradesh has implemented incentive<\/strong>s to attract investments of INR 30 bn (USD 360 mn) or more from semiconductor manufacturers<\/strong> as part of efforts by the state to build a high-end manufacturing base, Hindu Businessline<\/a> reports. It also approved standard operating procedures for Global Capability Centers as it sharpens its pitch as an investment destination.<\/p>\n

Why it matters:<\/strong> If you are a MENA-based tech firm looking to set up a back-office or a fabrication facility in India, Uttar Pradesh just became significantly cheaper than Bengaluru or Hyderabad on an operational basis. By offering 10-year power and tax subsidies, the heartland state is trying to undercut the established tech hubs of southern India like Visakhapatnam<\/a> and Thoothukudi<\/a>.<\/p>\n

\n
\n
\n
\n

Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

YOU\u2019RE READING EnterpriseAM MENA <> India, your C-suite briefing on the movement of trade, investment, people, and ideas along one of the world\u2019s most exciting corridors. Every Monday, Wednesday, and Friday at 9am UAE, we dive deep into the business, finance, economy, and policy headlines and trendlines that will move markets and set the tone for your day. <\/p>\n

Were you forwarded this briefing? <\/strong>Tap or click here to sign up without charge for your own<\/a>copy.<\/a> <\/p>\n

\n

Data point<\/p>\n

<\/a> USD 8.5 bn \u2014 this was the value of i<\/strong>nstitutional<\/strong> investments in the Indian real estate<\/strong> sector in 2025<\/strong>, a 29% y-o-y increase, riding a sharp year-end surge amid soaring domestic participation, as per Colliers India<\/a>. Domestic institutions more than doubled deployments to USD 4.8 bn, amounting to 57% of inflows, while foreign inflows eased 16% to USD 3.7 bn.<\/p>\n

IN CONTEXT- <\/strong>Gulf institutional investors<\/a> are laser-focused on Grade A, income-generating office assets, specifically those ready to be packaged into Real Estate Investment Trusts, which alone drew USD 4.5 bn in 2025.<\/p>\n

\n

Happening this week<\/p>\n

India<\/strong> and the EU will hold high-level talks in Brussels from 8-9 January to push forward <\/strong>negotiations on a long-negotiated freetrade agreement<\/strong>, as both sides look to resolve outstanding issues and accelerate closure, Press Trust of India<\/a> reports. The agreement is likely to be signed around 26 January during a visit by European Commission President Ursula von der Leyen to New Delhi. <\/p>\n

\n

The big story abroad<\/p>\n

Uh<\/strong>, did the US just *literally* steal Venezuela\u2019s oil? <\/strong>Oil tankers are moving from the US towards Venezuela to begin loading stranded Venezuelan oil after US President Donald Trump said Venezuela will hand over some 30-50 mn barrels of oil to the US. The sale of the cargoes could be worth around USD 3 bn at current prices. <\/p>\n

What he said: <\/strong>\u201cThat money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States,\u201d Trump wrote in a post on his Truth Social platform.<\/p>\n

^^ The must-read on the topic: Trump: Venezuela to turn over 30-50 mn barrels of oil to US<\/a> <\/p>\n

And the White House is now saying that military force is on the table in its bid to <\/strong>\u201cacquire\u201d Greenland. <\/strong>\u201c\u201cPresident Trump has made it well known that acquiring Greenland is a national security priority of the United States, and it\u2019s vital to deter our adversaries in the Arctic region,\u201d White House press secretary Karoline Leavitt said. \u201cThe president and his team are discussing a range of options to pursue this important foreign policy goal, and of course, utilizing the US military is always an option at the commander-in-chief\u2019s disposal.\u201d<\/p>\n

Her remarks came after White House Deputy Chief of Staff Stephen Miller channeled his <\/strong>inner Balon Greyjoy<\/strong>, saying, \u201cNobody\u2019s going to fight the United States militarily over the future of Greenland. \u2026 We live in a world, in the real world \u2026 that is governed by strength, that is governed by force, that is governed by power. These are the iron laws of the world since the beginning of time.\u201d See more in the New York Times<\/a> and the FT<\/a>.<\/p>\n

Closer to home: <\/strong><\/p>\n