IESA WINWire July 05 - July 11, 2014
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‘Internet of Things’ May Grow More than PC, Smartphones
Source: The Hindu Business Line; July 5, 2014


Smart cities, smart devices, applications and platforms could be jargons for many in India, but these are soon becoming realty and would grow exponentially in the near future. Termed as Internet of things (IoT), such mode of connectivity would be part of our daily lives and are expected to grow faster than the personal computers or smartphones had grown over the last 10 years. Though the current market size is not known, the IoT connectivity drive will create a global market worth up to $8.9 trillion by 2020 as per IDC, and would grow at a compound annual growth rate of 7.9 per cent between now and 2020.

Govt to Correct Taxes on Imported Goods to Boost Manufacturing
Source: The Financial Express; July 5, 2014

Finance minister Arun Jaitley is likely to restructure import duties on a host of raw materials and intermediates in a bid to boost domestic manufacturing, which is central to the BJP’s vision of making India a global production hub. The manufacturing sector had suffered a 0.7% output contraction last fiscal. Finance ministry sources said correcting the inverted duty structure — or the problem of raw materials being subjected to higher taxes than the finished products — was a priority and had therefore asked for specific inputs on products, their uses, turnover and other details from industry. It is also part of the finance ministry’s broader objective of simplifying the tax structure.

Odisha Urges Centre to Clear ITIR Project
Source: Business Standard; July 5, 2014

The state IT (Information and Technology) department has sought the final approval from Union ministry of Communications and IT for the development of IT investment region (ITIR) in Bhubaneswar. The ITIR in Odisha is to be developed on an area of 41.32 sq km (10,210 acres) between Bhubaneswar and Khurda. Out of the total land, there will be a processing area of 4,300 acres, which will house IT/ITes (enabled services), electronics hardware manufacturing (EHM) and research and development (R & D) centers.

West Bengal Awaiting Positive Nod for ESDM Clusters
Source: Data Quest; July 5, 2014

In 2011, the West Bengal state government had appointed a high-power committee on IT under the chairmanship of Sam Pitroda to chart out new initiatives for growth of information technology and electronic industry in West Bengal. However, the initiatives failed to take off its execution plans. With expectation of new India from a recently appointed government, the state government is now optimistic about receiving a preliminary approval soon for the first electronic cluster, a precursor to set the ball rolling for manufacturing units for the hi-tech industry in the state.

Centre’s Nod for City IT Investment Region Sought
Source: Daily Pioneer; July 6, 2014

The ITIR would be developed in an area of 41.32 sqkm (10,210 acres) between Bhubaneswar and Khordha. Out of the total land, there would be a processing area of 4,300 acres, which would house IT/ITes (enabled services), electronics hardware manufacturing (EHM) and research and development (R&D) centres. The State Government had submitted a detailed project report (DPR) to the Union Government’s Department of Electronics and Information Technology (DeitY) way back on April 13, 2010 for setting up of the ITIR.

MAIT Demands Reversal of Inverted Duty Structure to Encourage Electronics Manufacturing
Source: CIOL; July 7, 2014

With the change of guard at the centre, Manufacturers' Association for Information Technology (MAIT), the apex body representing the computer hardware, training and software industries India is keeping its hope high on a new wave of reforms that would give the much needed impetus to electronics manufacturing in India. The apex body has been demanding reversal of Inverted duty structure and is lobbying for exemption of Special Additional Duty (SAD) on all components used by manufacturers in the sector, as part of its pre-budget recommendations to the government.

Odisha Seeks Six New STPI Units
Source: Business Standard; July 7, 2014

The state IT (information and technology) department has urged the Centre to grant six new STPI (Software Technology Parks of India) units to the state. Pranab Prakash Das, the state IT and Energy minister, today called on the Union minister for Communications & Information Technology and Law & Justice, Ravi Shankar Prasad at New Delhi and raised this demand. The six locations suggested for establishment of new STPI units are Jajpur, Sambalpur, Jeypur, Angul, Rayagada and Kalahandi.

Bangalore's Dayananda Sagar Institutions to Groom Minimum 1,000 Startups
Source: The Economic Times; July 8, 2014

In a sign of the deepening links between colleges and startups in the country, an educational institution in Bangalore is throwing open 4 lakh square feet of built-up area to incubate a minimum 1,000 new ventures.

Dayananda Sagar Institutions will set up a one-stop plug and play incubator in the heart of Electronic City in South Bangalore for startups in the electronic system design and manufacturing (ESDM) space..."Talks are on to get angel investors, venture capital funds and experts in mentoring, go-to-market strategists and IPO advisories under one roof," said MN Vidyashankar, chairman of Indian Electronics and Semiconductor Association (IESA). "This will help these startups in the post-incubation stage as they do not have to knock on multiple doors for their proposals to take off."

BUDGET 2014: Boost Local Electronics Production, Clamp Down On Imports, Demands IESA
Source: The Economic Times; July 8, 2014

India's semiconductor industry has urged the government to unveil a compost of measures in the upcoming budget to boost local electronics production and contain the country's alarming dependence on imports. It has also sought "priority status" for the electronics system design & manufacturing (ESDM) sector. India Electronics & Semiconductor Association (IESA) has urged the government to enable fast-track clearance of an "electronic development fund" and unveil sops to drive R&D activity. The IESA is the industry lobby body representing leading semiconductor solution providers in the country. "We hope the government will build more greenfield and brownfield electronics manufacturing clusters and incubation centers to create the ecosystem and promote entrepreneurship and innovation," said IESA president M.N. Vidyashankar in a media statement.

Modi for Big Push to Electronics Manufacturing: Ravi Shankar Prasad
Source: The Economic Times; July 8, 2014

Prime Minister Narendra Modi has given his full support to push electronics manufacturing, which needs lots of incentives and duty restructuring, Telecom and IT Minister Ravi Shankar Prasad said on Wednesday. "We can give jobs to 2 crore 80 lakh people if we push electronics manufacturing in a big way that requires lots of incentives, duty restructuring, other things. "Because budget is coming I cannot tell you anything, except to say that the PM was all ears and he has given me full support to push electronics manufacturing in a big way," he told reporters at an interaction with journalists at Indian Women's Press Corps office. The minister said he has cleared setting up of eight electronics manufacturing clusters (EMC) since he took charge of the Ministry in May. Under the EMC scheme, the government provides financial support for building industrial parks that house eco-system for manufacturing of electronics products.

Govt Further Eases Norms for Entry into Defence Production
Source: The Economic Times; July 9, 2014

The government today further eased the process of obtaining an industrial licence for defence production activities by doing away with the requirement of submission of an affidavit with regard to safety and security procedures. "It has been decided that the applicants for Industrial License for Defence Products would not be required to submit an affidavit," the Commerce and Industry Ministry said in a statement.The decision would help private sector companies involve in defence manufacturing. The licences for defence sector were being issued on the basis of an affidavit from applicants that they would put in place adequate safety and security procedures.

Chips are up for semiconductor fabrication investments
Source: The Hindu Business Line; July 10, 2014

Companies setting up semiconductor wafer fabrication manufacturing will now be able to get tax deductions linked to their investments. Last year, an incentive in the form of investment allowance to a manufacturing company that invests more than ₹100 crore in plant and machinery during the period April 1, 2013 to March 31,2015 was announced.

Considering the need to incentivise smaller entrepreneurs, the Finance Ministry has proposed to provide investment allowance at the rate of 15 per cent to a manufacturing company that invests more than ₹25 crore in any year in new plant and machinery. This benefit will be available for three years, i.e., for investments up to March 31, 2017. The scheme announced last year will continue to operate in parallel till March 31, 2015. The investment-linked deduction has been extended to semi-conductor wafer fabrication manufacturing units as well in a bid to boost investments.

Jaitley imposes tax on imports of telecom, IT products
Source: The Week; July 10, 2014

In a move to give level-playing field to domestic electronics manufacturing sector, Finance Minister Arun Jaitley today imposed tax on imports telecom and IT products.

"To boost domestic production and reduce our dependence on imports I intend to take following steps. Impose basic customs duty (BCD) of 10 per cent on import of specified telecommunication products that are outside the purview of Information Technology Agreement," Jaitley said in Parliament.

Spotlight on hardware
Source: The Hindu; July 11, 2014

Budget proposal exempts 2 % Special Additional Duty on PVC sheet and ribbon

The Narendra Modi government appears to have taken steps towards containing India’s dependence on electronics imports with a few budgetary proposals that meet some of the long-pending demands of the ESDM (electronics system design and manufacturing) sector.

Ashok Chandak, Chairman, India Electronics and Semiconductor Association (IESA), welcomed the budget’s commitment to “making India the Design Led Electronics Manufacturing hub.” In an official statement, he said that good days are ahead for the electronics industry, alluding to the BJP's poll campaign slogan.

Worldwide Semiconductor revenue to reach $336 bn in 2014
Source: TeleAnalysis; July 11, 2014

Worldwide semiconductor revenue is on pace to reach $336 billion in 2014, a 6.7 percent increase from 2013, and up from the previous quarter’s forecast of 5.4 percent growth, according to Gartner.

Sequential growth in the second quarter of 2014 is outpacing expectations, as can be seen in many companies including foundry leader TSMC, which is expecting second-quarter sequential growth of over 20 percent.

“2014 semiconductor growth is widespread across many chip types and applications,” said Bryan Lewis, research vice president, Gartner.

Compiled by IESA Research

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