IESA WINWire Jan 11 - Jan 17 2014
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ESDM sector to generate Rs 19k cr revenue by 2024
Source: Business Standard; January 11, 2014

The electronic system design and manufacturing (ESDM) sector is poised to generate cumulative revenue of Rs 18,800 crore revenue in Odisha by 2024, as per the estimates of The India Electronics & Semiconductor Association (IESA).IESA, a premier trade body representing the ESDM sector, has prepared a draft report, projecting the revenue, potential investments and employment opportunities in this field. The draft report says investment of Rs 7340 crore need to be pumped into the sector in three phases to realise the projected revenue.

Phase 1 (2016-18) can start with system integration and assembly of low complexity products and components.

Odisha expected to be an electronic hub by 2020
Source: The DQweek; January 11, 2014

As an attempt to enhance the Electronic System Design & Manufacturing (ESDM) sector the state IT department has taken a positive step in allowing the set up of Electronic Testing Labs for Bureau of Indian Standards (BIS). This lab will ease out the issue of BIS numbers that is mandatory for electronic products. The assent from the state government was an outcome of the proposition by Department of Electronics & Information Technology (DEITY). DEITY which comes under the Union ministry of Communication and Information Technology laid down the proposal for the construction of an electronic lab in the state of Odisha. DEITY will act as financial aid for this project and the lab is planned to be set up at International Institute of Information Technology (IIIT), Bhubaneswar.

Are we making it too tough for electronics sector to survive?
Source:; January 11, 2014

To attract investments in hilly states of Uttarakhand and Himachal Pradesh, the central government announced a package in 2003 with 100 percent exemption for 10 years in excise and income tax. The package also included subsidy for 15 percent of the capital investment in setting up plant and procurement of machines. The government requested a few corporate groups such as Hewlett Packard (HP) and Tata Motors to set up their manufacturing plants promising lucrative incentives.

While one can borrow capital overseas at essentially London Interbank Offered Rate (Libor) plus/minus one to two percent, cost of capital in India is between 14 to 16 percent, says PVG Menon, president of Indian Electronics and Semiconductor Association (IESA). “Many financial institutions are also reluctant to give capital to the electronics sector, especially to the SME sector. Finally the risk or venture capital is almost non-existent for this sector, and this is seriously hampering the growth of start-ups in the ESDM sector,” he added.

India to Have A National Smart Grid Mission
Source:; January 11, 2014

The Indian government will soon launch a national smart grid mission and monitor the implementation of policies and programmes envisioned in the smart grid road map for the power sector, said B N Sharma, joint secretary, Ministry of Power at the Trafotech 2014, an international conference at the ELECRAMA 2014 in Bangalore.

He added that the government had recently unveiled the Smart Grid Vision and Road Map for the future for both modernizing the aging grids as well as for transition towards low carbon power economy by integrating renewable generation with the grid. The Mission plan 2012-2022 for the electrical equipment industry was launched in July 2014 and its vision is to make India the country of choice for production of electrical equipment and reach an output of USD 100 billion by balancing exports and imports.

Special scheme for manufacturing gets Rs 13,000 cr proposals
Source: Business Today; January 13, 2014

The government has received 25 proposals for manufacturing in the electronic sector under the Modified Special Incentives Package Scheme (MSIPS) worth Rs 13,000 crore. Besides domestic companies, investment proposals have also come from Japanese, American, Korean and German companies, Ajay Kumar, Joint Secretary with the Department of Electronics and Information Technology said on Monday.

"We are finding interest in the manufacturing of automotive electronics, LEDs, consumer electronics like television, tablets and other electronic manufacturing services activities," he said, on the sidelines of the launch of two reports on the Indian electronic manufacturing sector by lobby body India Electronics and Semiconductor Association (IESA).

IESA releases two reports on domestic electronics manufacturing
Source: Data Quest; January 13, 2014

India Electronic and Semiconductor Association (IESA), the trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, released two studies today. The IESA-Frost & Sullivan Report analyses the growth & opportunity in the Indian ESDM market, while the ‘Disability identification study' with Ernst & Young examines key macro issues that are impairing the growth of electronics manufacturing in the country.

The ESDM industry in India is expected to grow at a CAGR of 9.9% to reach US$94.2 billion by 2015. This is more than twice the growth rate of the global ESDM market and presents immense potential for the domestic market. Currently, 65% of demand for electronic products is met by imports in the country, and even the balance 35% which is manufactured in India is mainly "Low Value Added Manufacturing". In this context, the two reports emphasize on developing an ecosystem for bridging the demand-supply gap and make concrete recommendations to the government to create a favourable environment for "High Value Add

Made in India: Govt to promote domestic production in 25 electronic segments
Source:; January 13, 2014

The government is looking at promoting domestic manufacturing of 25 products including mobile phones, flat panel TVs and notebooks on priority basis. "Year of 2014 should be year of Made in India. It makes commercial, economic sense to make these products and components in India. If we are able to focus on these 20-25 products then there should be substantial change in electronics industry by December 2014," Electronics and IT secretary J Satyanarayana said at an IESA event.

He released a joint study of Indian Electronics and Semiconductor Association, Ernst & Young and Frost & Sullivan that was conducted on top 25 products, which account for 69 percent of total electronics in the country, and 4 key components that are required for their production.

"This report will help us in understanding priority segments. We can streamline tariffs for some products which is difficult when we do it for 1,000 products," Department of Electronics and IT Joint Secretary Ajay Kumar said.

ESDM: After fab approvals, what next?
Source: EE Times India; January 14, 2014


The Government is finalising plans to set up four hubs across the country to fund and incubate start-ups that specialise in electronics.

These incubators will work as centralised facilities and will provide specialised tools and facilities for start-ups to come and develop their chips and products."Recently, the Working Group ......

...incubator in Delhi, which is being set up by STPI and The India Electronics & Semiconductor Association (IESA), along with Delhi University ,"

65 per cent of electronic items' demand met by imports: Report
Source: Business Standard; January 14, 2014

The Indian electronic system design and manufacturing (ESDM) industry is expected to grow at a compound annual growth rate (CAGR) of 9.9 per cent to reach $ 94.2 billion by 2015.

This is more than twice the growth rate of the global ESDM market and presents immense potential for the domestic market. Currently, 65 per cent of demand for electronic products is met by imports in the country, and even the balance 35 per cent, which is manufactured in India, is mainly ‘low value added manufacturing’, according to a set of study reports released by the India Electronic and Semiconductor Association (IESA).

Commenting on the reports, Sanjeev Keskar, chairman, IESA, said, “As per the government’s National Policy on Electronics, 2012, we have a $100 billion investment target to meet by 2020. With the clear recommendations in this report, it’s time to adopt necessary changes to boost domestic product development and manufacturing. Ensuring speedy implementation of the new initiatives and taking corrective measures on certain key irritants will go a long way in building confidence ushering manufacturing investments in the country.”

India ESDM 2014: Speed is the name of the game
Source: Electronics Engineering Herald; January 14, 2014

The scale of opportunities for Indian Electronics System Design and Manufacturing (ESDM) is only growing irrespective of global economic uncertainties. The slow growth of global economy can only reduce the growth of Indian electronics consumption to very-little extent, because the mobile phone and many other electronic devices are becoming important irrespective of economic status of many buyers. In year 2013, as per our estimations from the feedbacks we received from large number of small and big companies selling electronics products in India, are estimated to be growing their revenues in the range of 10 to 15%, while their global market growth is slow/flat or down in 2013. There are few companies which have reported an excellent growth rate, one such company is embedded computer module supplier Advantech from Taiwan, which is even estimating hundred percent growth in revenues from the Indian region. This clearly indicates the forecast of the demand of electronic hardware in India to reach US$ 400 billion by 2020, is a realistic forecast.

An important and relevant event for this industry is scheduled to happen on 3rd and 4th of February 2014 in Bangalore. The event named "IESA vision Summit 2014" is organised by India electronics and semiconductor Association, an industry body which is actively represented by both multinational electronics and semiconductor companies as well as domestic electronics and semiconductor companies. This is a perfect event to feel the pulse of Indian ESDM industry, where you can meet officers from the Government, senior executives from the domestic as well as multinational electronics and semiconductor companies.

Intel to partner with Indian original equipment manufacturers
Source: The Times Of India; January 14, 2014

As Intel looks to become a serious player in the mobility space, the company is looking to partner with Indian original equipment manufacturers and release a slew of tablets and two-in-ones starting this year.

"We want to be a relevant player in 2014 and the leader in 2015. We have the building blocks, we understand the channels much better, we've learnt how things are sold in India," Anand Ramamoorthy, director of south Asia consumption sales at Intel, said in a recent interview.

2014 should be year of “Made in India”: Deity
Source: Data Quest; January 15, 2014

The India Electronic and Semiconductor Association (IESA) recently announced that ESDM sector will reach $94 billion by 2015. In a report by IESA-Frost & Sullivan, there are 25 high priority products, which will robust the growth of ESDM sector in 2014. These 25 products account for 82 percent of the overall electronic consumption in India. The prominent products segments are mobiles, tablets, notebooks, desktops, and LEDs. Dr. Ajay Kumar, Joint Secretary, Deity, said: "There are 25 new investment proposals of approximately Rs 13,000 crore each. There are several semiconductor wafer fab investment proposal of about Rs 25,000 crore each.

"India is a bit like Taiwan in semicon"
Source: The Times Of India; January 16, 2014

Lip-Bu Tan is the CEO of Cadence Design Systems, a global company that makes software tools to design chips and printed circuit boards, and also the chairman and founder of investment firm Walden International. Walden is in the process of establishing a $100 million fund for investments in Indian technology companies, mainly in the semiconductor space. On a visit to Bangalore, Tan talked about the fund and how excited he was about the Indian semiconductor business.

Narendra Modi to hold meeting with ICT top bosses today
Source:; January 17, 2014

Bharatiya Janata Party's prime ministerial candidate Narendra Modi is all set to hold a closed door meeting with the top 25-30 executives of information technology and telecom companies here today during which they will deliberate on the challenges facing the industry.

The list of prominent participants in the meeting include Google, IBM, Nokia, Airtel, Vodafone, Reliance ADA, Videocon, Alcatel Lucent, Dell, HP, Samsung, Tech Mahendra, Cisco and the Cellular Operators' Association of India. This close-door session would be part of the CyberMedia's ICT Awards function.

Sources said the Indian Electronic and Semiconductor Association (IESA) would press for declaring the sector as a priority sector and making concessional credit available to entrepreneurs thereby enabling them to make globally competitive products and build to scale.

Electronic clusters along rail corridor planned
Source: The Hindu; January 17, 2014

The process for acquiring land has commenced for the electronic manufacturing clusters that are to be set up along the Ernakulam- Palakkad industrial corridor proposed to be developed by the State, said official sources.

Under the National Electronic Policy announced by the Union government in 2012, the Centre will provide 50 per cent of the cost incurred for infrastructure at the electronics clusters to be developed in States. The State government has to identify land for the clusters. Each State can have 2 to 5 clusters. The new investment policy (NIP) envisages National Investment and Manufacturing Zone. In Kerala, it will come up along the Ernakulam-Palakkad corridor.

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Compiled by IESA Research

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