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?
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: IPFonline.com; 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
IESA releases two
reports on domestic electronics manufacturing
Source: Data Quest; January
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
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
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
"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
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
$100 billion investment target to meet by 2020. With the clear
recommendations in this report, it’s time to adopt necessary changes
to boost domestic product development and manufacturing. Ensuring
speedy implementation of the new initiatives and taking corrective
measures on certain key irritants will go a long way in building
confidence ushering manufacturing investments in the country.”
India ESDM 2014: Speed
is the name of the game
Engineering Herald; January 14, 2014
The scale of opportunities for Indian Electronics System Design and
Manufacturing (ESDM) is only growing irrespective of global economic
uncertainties. The slow growth of global economy can only reduce the
growth of Indian electronics consumption to very-little extent,
because the mobile phone and many other electronic devices are
becoming important irrespective of economic status of many buyers. In
year 2013, as per our estimations from the feedbacks we received from
large number of small and big companies selling electronics products
in India, are estimated to be growing their revenues in the range of
10 to 15%, while their global market growth is slow/flat or down in
2013. There are few companies which have reported an excellent growth
rate, one such company is embedded computer module supplier Advantech
from Taiwan, which is even estimating hundred percent growth in
revenues from the Indian region. This clearly indicates the forecast
of the demand of electronic hardware in India to reach US$ 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
"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: Indiatvnews.com; 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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