From Iran to Europe & India
This week we move from Iran's military innovations to the EU's new funding model. We see India's growth in iPhone manufacturing & satellite launches. Finally, do the Brits supports Brexit now?
Is Iran innovating in the military against the backdrop of sanctions?
In recent years, there has been a notable increase in Iranian drone production across multiple countries spanning regions from South America to Central Asia. Notably, Russia has recently joined the ranks of nations manufacturing Iranian drones, particularly for its involvement in the conflict in Ukraine, thereby expanding the utilization of Iranian technology to at least twelve countries worldwide.
Iran's utilization of drone diplomacy serves multiple strategic purposes, including generating foreign currency to support its defense industry, reinforcing strategic partnerships, and establishing itself as a significant arms supplier, thereby potentially reshaping global conflict dynamics.
Iran's drone capabilities largely rely on modified model airplanes powered by simple lawnmower engines and equipped with components sourced from US suppliers and retail markets, repurposed for military use.
The sophistication of Iran's drone program notably increased following the withdrawal of the United States from the Iran nuclear agreement in 2018.
Efforts by US and European diplomats to prolong United Nations Security Council restrictions on Iranian missile and drone sales were ongoing for two years following the withdrawal.
However, these restrictions lapsed in October 2023, coinciding with the outbreak of conflict in Gaza.
Hindered by export controls on Western technology with potential military applications, Iran resorts to acquiring electronic components from Asian suppliers or clandestinely procuring them from the US and Europe through a network of front companies.
Is the EU planning a new model for defense & climate change funding?
EU leaders are poised to reinvigorate efforts aimed at eradicating national barriers within the bloc's capital markets, as they hasten to secure substantial funds for accelerating the continent's defense capabilities and transitioning to a greener economy.
The European Central Bank has projected that the investment shortfall to achieve the EU's 2040 climate objectives stands at €800 billion annually.
Additionally, an estimated €75 billion annually is required for member states to fulfill NATO's target of allocating 2 percent of GDP to military expenditure.
Advocates of integrating Europe's fragmented financial markets argue that this move would facilitate the inflow or retention of capital within the EU.
Presently, the bloc experiences a net financial outflow of €250 billion annually to other regions, primarily to the United States, according to data from the European Central Bank.
Financial markets supervision emerges as a contentious topic among ministers, with certain nations, such as France and the Netherlands, advocating for empowering the existing EU regulator, Esma, based in Paris, with direct oversight over financial institutions in Europe.
France advocates for a more ambitious approach that would subject trading platforms, clearing houses, and asset managers to Esma's direct supervision voluntarily.
Conversely, Berlin opposes centralized supervision, citing concerns over additional costs for banks and other market participants.
$14 billion iPhones manufactured in India
Apple Inc. achieved a significant milestone in the past fiscal year ending in March’2024 by successfully producing iPhones valued at $14 billion in India, marking a substantial increase in manufacturing endeavors.
This underscores the company's proactive approach to diversify its production base beyond China.
The escalation in production has led the prominent US technology firm to source up to 14% of its flagship devices from Indian facilities.
Today, approximately 1 in every 7 iPhones is now manufactured in India.
Despite China remaining Apple's primary manufacturing hub for iPhones and its largest overseas market, the company faces revenue declines in the region due to stiff competition from emerging competitors such as Huawei Technologies Co. and increasingly stringent regulations governing foreign technology used in Chinese workplaces.
Foxconn Technology Group played a significant role in assembling nearly 67% of iPhones in India, with Pegatron Corp. contributing approximately 17% in the fiscal year ending in March 2024, according to informed sources.
The remainder of iPhones were manufactured at Wistron Corp.'s facility in the southern state of Karnataka, which was acquired by Tata Group, a diversified conglomerate, last year.
As part of its strategic initiatives, Tata Group intends to establish one of India's largest iPhone assembly plants.
This concerted effort to enhance manufacturing capabilities and seamlessly integrate into global supply chains is expected to drive growth opportunities in the foreseeable future. These developments also position India to potentially surpass China as the world's leading growth engine.
India’s indigenous military-grade satellite put into orbit
Tata Advanced Systems Ltd (TASL), a subsidiary of Tata Sons, has achieved a significant milestone with the successful deployment of India's first military-grade geospatial satellite developed entirely by the private sector.
This was achieved on April 7 during a launch event held at the Kennedy Space Center in Florida, facilitated by SpaceX's Falcon 9 rocket.
The satellite represents a groundbreaking advancement in geospatial imaging capabilities, boasting an impressive precision level of less than one meter per pixel.
It is poised to deliver high-resolution imagery of exceptional quality, promising to meet the stringent requirements of governmental and defense sectors.
Efforts are currently underway to establish a dedicated ground center within India. This center will be responsible for crucial functions such as data reception and processing, thereby enhancing operational efficiency and accessibility.
India's existing array of military reconnaissance satellites, developed by the Indian Space Research Organization (ISRO), has its limitations.
TASL's initiative signifies a strategic move towards bolstering India's space capabilities, with plans to produce up to 25 low earth orbit (LEO) satellites annually. This positions TASL as a key player in the rapidly evolving space technology sector.
How do the Brits look at Brexit today?
Since the referendum held in June 2016, where 52% of the voters opted to leave the European Union, there has been a notable shift in the prevailing sentiment among Britons. Particularly over the last two years, there has been a growing inclination towards the viewpoint that the outcome of the referendum was erroneous.