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ISA WINWire October 14 - 21 2011


TSMC chairman bearish on economy

Source: Taipei Times, October 14 2011

Taiwan Semiconductor Manufacturing Co (TSMC) chairman and CEO Morris Chang gave a bearish outlook about the world economy as US and European nations were struggling to stimulate growth and to resolve debt crisis, casting a shadow on the pickup of semiconductor industry. Speaking at an awards ceremony late on Wednesday, Chang said US economy would not recover until 2013 and that Europe was facing a far more serious debt problem than previously believed. Chang's speech was seen in a video clip posted on the Web site of the event's organizer CommonWealth magazine. This could mean a bumpier road ahead for the semiconductor industry and it could take longer to recover than he had originally estimated as economic slowdown could reduce demand for chips used in electronics from PCs, TVs to handsets.

India, US to enhance collaboration in research, skill development

Source: The Economic Times, October 17 2011

New Delhi: In a bid to strengthen and deepen its strategic partnership with the United States, India will set up a "higher education platform" to enhance collaboration in research, skill development and student and faculty exchange. The announcement came as the first ever India-US education summit wrapped up in Washington. Both countries stressed on the need to enhance the scope of collaboration and identify new ways to encourage linkages and exchange programmes. In a joint statement on higher education cooperation US Secretary of State Hillary Clinton and human resources development minister Kapil Sibal agreed to make the higher education dialogue an annual bilateral event to "map out strategies for partnership in the field of education" between the two countries. The dialogue, which would be held alternately in the US and India, should "identify areas for mutually beneficial exchanges and provide a platform for intense and meaningful collaboration among academia, private sector and government on both sides," the joint statement said. India announced its intention to set up an "India-US higher education platform as a means to pursue these goals," with Sibal pointing out that the dialogue process has to be managed "effectively".

India poised to be among top 5 aviation nations in next 10 years: Pratibha Patil

Source: The Hindu Business Line, October 18 2011

India is exploring opportunities to improve connectivity with Africa and plans to pump in $5 billion, according to aviation Ministry officials. The Indian Government is also looking at enhancing the number of Indian carriers to Oman, Saudi Arabia and countries in the Gulf region through bilateral negotiations. India is involved in negotiations with 65 countries for bilateral air traffic rights during the fourth International Civil Aviation Negotiation (ICAN) conference that began in Mumbai on Monday. Speaking on the occasion, the Civil Aviation Minister, Mr Vayalar Ravi, said that the country will have total traffic of 30 crore passengers by 2020. However, there is a shortage of skilled aviation professionals. To address the issue, the Government is planning to set up an aviation university with world-class facilities, the Minister said.

5 states to contribute Rs 50 lac cr industrial output by 2016

Source: The Economic Times, October 18 2011

Identified as states with "great potential", Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu are projected to increase their industrial production by more than two-and-half times to Rs 50 lakh crore in the next five years. But to achieve the milestone, these states will require 1.72 lakh acres of land for industrial use, according to a study by the global property consultant Knight Frank. "Our analysis clearly indicates that industrial output (in these states) over the next five years will touch Rs 49.40 lakh crore by 2016 from the current Rs 19.35 lakh crore and is expected to grow at an annual rate of 21 per cent," it said. The study carried out by Knight Frank India has identified the five states as "the most industrialised states which also offer a great future potential". The petroleum sector alone would contribute nearly one-third of the industrial output followed by metal and chemicals. During the last 10 years, engineering and chemical industries have witnessed the highest growth while petroleum has emerged as the largest industry in the country,it said.

RV-VLSI, JSS Mahavidyapeetha (JSSMVP) and IGNOU partner to offer first-of-its-kind M.Tech program in VLSI & Embedded System Design

Source: indiaPRwire, October 18 2011

RV-VLSI Design Center, JSS Mahavidyapeetha and Indira Gandhi National Open University (IGNOU) join hands to offer a first-of-its kind M.Tech program in VLSI & Embedded System Design, aimed at enhancing the employability of candidates. The M.Tech program is designed to create industry-ready VLSI & Embedded System Design professionals and is meant for fresh engineering graduates and working professionals, planning a career shift from IT services to core jobs in product companies. In an era where industry-ready talent is rarely produced by educational institutes, RV-VLSI Design Center, JSS Mahavidyapeetha and Indira Gandhi National Open University (IGNOU) join hands to offer a first-of-its kind M.Tech program in VLSI & Embedded System Design, aimed at enhancing the employability of candidates. The M.Tech program is meant for fresh engineering graduates and working professionals, planning a career shift from IT services to core jobs in product companies. Unlike the IT services or BPOs, a career in VLSI & Embedded System Design companies, mandates thorough understanding of design concepts, technology exposure and current industry trends. However, not all these skills are imparted in academics or at work.

Pranab on how global crisis is affecting Indian economy

NDTV Correspondent, October 19 2011

Finance minister Pranab Mukherjee on Wednesday said global crisis is casting a shadow on India's economic growth. Addressing the Economic Editors Conference in New Delhi, Mr Mukherjee said that FY '12 growth is likely to be lower than budget projections. Here is the full text of his speech. Ladies and Gentlemen, I consider it an honour to address this august gathering of Economic Editors from the length and breadth of this country. I am keenly aware of the vast knowledge and experience embedded in the audience and am looking forward to a productive exchange of ideas. 2. Feedback from the ground and from experienced analysts goes a long way in enhancing the efficacy of economic policies. It is important for you to realize that as editors you are not just people who report and comment on economic policy but you also, in an important sense, contribute to the formulation of policy. Through your writings you shape people’s opinion and, in a democratic system like ours, the opinion that people hold has a large influence on the policies that get adopted. Hence, you have a large indirect impact on policymaking in India.

ESDM sector asks for rapid implementation of the policy

Source: L Subramani, Deccan Herald, October 19 2011

Electronic System Design and Manufacturing (ESDM) sector has urged the government to rapidly implement the electronic policy and create an ecosystem for growth. Speaking in the session on ESDM at on Wednesday, industry representatives asked the government to recognise computer hardware as a separate sector from IT and provide investments which would save the revenue drain through imports and loss of competitive advantage. “Electronic consumption in this country is growing about 23 per cent CAGR, while figures for 2012 is slated to be nearly 9.86 billion USD. Out of this we would be spending 4.71 billion dollar for import of components, which is nearly 50 per cent of the consumption,” pointed out Chairman of Indian Semiconductor Association (ISA) Dr Pradip Dutta. Quoting a recent study conducted by ISA, which divides electronic and hardware manufacturing amongst different sectors like telecom, consumer, industry automation, automotive, Printed Circuit Boards (PCBs) etc, Dutta said the gulf between domestic consumption and increasing import do not allow the country to enjoy the true benefits of growth.

Driving the Economy: Automobile Production in India

Source: ICA Institute, October 20 2011

India's contribution to world automobile production almost doubled in the last five years, from 2.5% in 2005 to 4.5% in 2010. While these are still relatively small shares, the size of the potential market in India is huge with Indian population accounting for close to 1/5th of world population. No wonder then that the growth rate in production of automobiles in India has been positive even during the recession years and above that of the world (fig.1.1).

Source: CEIC data

Over the last decade in particular, India has seen a surge in automobile production with manufacturing strongholds evolving in cities such as Chennai. While growth rates in production of passenger and commercial vehicles had been in the upswing from 2008, more recent months have seen a gradual decline with the most recent September data showing a negative growth rate compared to the previous September (fig . 1.2).

Source: CEIC data

Both commercial and passenger vehicle overall sales have slowed down over the last 12 months with rates of growth in passenger vehicles showing the steepest decline (fig. 1.3).

Source: CEIC data

In domestic sales, cars and vans appear to have seen the sharpest reduction in growth rates over the last 12 months while domestic sales of utility vehicles (SUVs) actually picked up speed (fig. 1.4).

Source: CEIC data

Exports to some degree have come to the rescue with growth rates in exports of commercial vehicles and cars showing positive signs while SUV exports lost steam (fig. 1.5).

Source: CEIC data

Amongst all vehicles, cars have held the majority of the market share but showed a slight decrease in September 2011, while the other categories showed a slight improvement in domestic market share (fig. 1.6).

Source: CEIC data

The decline in share of overall vehicle exports was significant for cars dropping from 90% in Sep. 2009 to 80% in Sep. 2011. Commercial vehicle exports gained at passenger car's expense (fig. 1.7).

Source: CEIC data

With planned and continuing major investments in transportation infrastructure and with only 96 vehicles per 1000 inhabitants in 2009, the potential for significant long term growth in this sector continues to be positive in spite of recent declines in growth rates.

India's mobile subscriber base crosses 865.7 mn

Source: CIOL, October 20 2011

The number of mobile phone subscribers in India rose to 865.7 million in August with Idea Cellular alone adding 2.33 million subscribers, official data showed Thursday. According to the Telecom Regulatory Authority of India (TRAI), the wireless user base grew 0.86 percent during the month with an addition of 7.34 million subscribers, from 858.37 million in July. With this, the total number of telephone subscribers, including landline holders, touched 899.78 million, registering a growth of 0.81 percent. Overall teledensity in India reached 74.96. However, of the total 865.71 million wireless subscribers, only 608.63 million subscribers were active subscribers on the date of peak visitor location register (VLR). VLR is a temporary database of the subscribers who have roamed into the particular area, which it serves. Each base station in the network is served by exactly one VLR, hence a subscriber cannot be present in more than one VLR at a time. The total number of subscribers of Idea Cellular stood at 98.44 million.

Compiled by ISA Research

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