IESA WINWire July 12 - July 18, 2014
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9th Anniversary

FM's Budget Looks Growth-Oriented: IT Bodies
Source: CXO Today; July 12, 2014


The keenly awaited Union Budget 2014 was welcomed by the industry majors like MAIT, CII and Nasscom. The decision to reduce customs on IT/telecom products, bridging the digital divide and setting up of smart cities were especially applauded by the industry bodies...IESA: The budget was also applauded by the India Electronics and Semiconductor Association (IESA). “The budget is growth supportive, anti-inflationary as well as committed to fiscal consolidation and reviving growth in manufacturing. We believe the steps outlined for this sector and commitment from the industry will put India is on the journey of becoming the Design Led Electronics Manufacturing hub by attracting investments, promoting entrepreneurship and creation of jobs,” said Ashok Chandak, Chairman.

Silicon Valley Team to Invest US $300 Million in Odisha
Source: NDTV; July 12, 2014

A team of investors from the US-based Silicon Valley on Thursday assured Chief Minister Naveen Patnaik of an investment of USD 300 million in Odisha.

A team of investors led by Ajit Monancha expressed interest to invest in Information Technology and Electronics System Design and Manufacturing sector in Odisha's Info Valley in Bhubaneswar.

Budget impact: Duty on telecom products to push telcos' annual spend by Rs 3000-6000 cr
Source: Business Standard; July 12, 2014

Telecom operators are yet to see 'achhe din'. Their annual expenses will shoot up by atleast Rs 3,000 crore ($500 million), and may go up to Rs 6,000 crore, starting this fiscal year, with the finance minister Arun Jaitley proposing to impose a 10% customs duty on telecom products.

Indian telecom operators, who are sitting on accumulative debt of Rs 2.5 lakh crore, import telecom equipment worth about $8-10 billion every year, and the imposition of 10% duty comes as an additional burden.

Budget Reaction: IESA
Source: Voice & Data; July 13, 2014

India Electronics and Semiconductor Association (IESA) welcome the budget aimed at boosting the Indian Electronics and semiconductor industry. The budget is growth supportive, anti-inflationary as well as committed to fiscal consolidation and reviving growth in manufacturing. We believe the steps outlined for this sector by the Finance Minister and commitment from the industry will put India is on the journey of becoming the “Design Led Electronics Manufacturing hub” by attracting investments, promoting entrepreneurship and creation of jobs. The speed and focus of the Minister for Communication & IT and DeitY in capturing industry needs from the electronics sector is very heartening and is a major milestone towards vision of making India an ESDM powerhouse.

Electronics to Claim Fab Land
Source: Deccan Chronicle; July 14, 2014

With Fab City, the much-hyped semi-conductor hub on the city outskirts, failing to attract companies since 2008, the Telangana government is planning to set up the E-City on the same premises. The YSR government had allotted 1,050 acres for Fab City, an SEZ meant for semi-conductor manufacturing firms, at Raviryal village in Maheshwaram mandal of Ranga Reddy. Six years later, only 64 acres are under utilisation. The TRS government now wants to utilise the vacant land to set up the E-City to give a push to electronic manufacturing firms. Information technology minister K.T. Rama Rao has already held a series of meetings with officials over utilising Fab City land for setting up the E-City. Mr Rao has plans to set up two “electronic clusters” spread over 600 acres and 400 acres, and develop the required infrastructure.

IBM Sets $3B R&D Funds to Advance Chip Technology
Source: EE Times India; July 14, 2014

IBM will invest $3 billion in two broad research and early stage development programmes over the next five years to push the limits of chip technology needed to meet the emerging demands of cloud computing and Big Data systems. The first research programme is aimed at so-called "7 nanometer and beyond" silicon technology that will address serious physical challenges that are threatening current semiconductor scaling techniques and will impede the ability to manufacture such chips. The second is focused on developing alternative technologies for post-silicon era chips using entirely different approaches, which IBM scientists and other experts say are required because of the physical limitations of silicon-based semiconductors.

10% duty will add to capex burden by Rs 1,000 crore: COAI
Source: The Times of India; July 14, 2014

Industry body COAI has said that 10% duty imposed on telecom products that fall outside the WTO pact will result in added capex burden of Rs 1,000 crore, while appreciating budget proposals like setting up of National Rural Internet and Technology Mission.

"Levy of this 10% duty will also result in an added capex burden on the GSM industry of an estimated amount of Rs 1,000 crore, approximating 10 per cent of the estimated value of import of goods ie Rs 10,000 crore, further affecting the already upset financial health of the sector," Cellular Operators Association of India (COAI) said.

ESDM Related Event Electronica India 2014 on 23rd Sept in Bangalore
Source: EE Herald; July 15, 2014

Electronic components and production technology trade fairs electronica India 2014 and productronica India 2014 to take place from the 23rd to 25th September 2014 at BIEC, Bangalore. The event is expected to have around 300 exhibitors representing 600 companies. The 2013 event has registered 11,589 trade visitors. These trade-fairs are supported by various electronic manufacturing associations like ELCINA, IESA, LEDMA, DEMA, IPC, IPCA, MAIT, CLIK, NSIC, and more. “It gives me great pleasure to once again ring in the fifteenth edition of electronica India 2014 and productronica India 2014, India’s largest trade fair on electronic manufacturing and production technology. The show would continue to help break fresh ground within the electronics manufacturing community, taking the Indian electronic sector to an altogether different platform in the global arena” said Mr. Bhupinder Singh, Deputy CEO, MMI India.

Can IT and electronics manufacturing in India take off
Source: Electronics Engineering Herald; July 15, 2014

While the worldover PC sales are falling, where as in India notebook computer sales are rising. During the year Apr 2013 to Mar 2014, Notebook PC has grown significantly by 55% among households, as per the latest study by MAIT.

Mr. Ashok Chandak, Chairman, India Electronics and Semiconductor Association (IESA): "Manufacturing incentives at 15% for extended period of 3 years for manufacturing company that invests more than 25 crore plus would create massive push to the MSME’s in electronic sector. This will lead to the inclusive growth of the electronic manufacturing clusters coming up in the seven states, setting up of electronics units, investment/employment opportunities in the non-urban parts of India and help build component eco-system."

Internet of Everything is Our Focus: IESA
Source: Tech Online India; July 16, 2014

To make India a powerhouse in electronics and semiconductors, India Electronics and Semiconductors Association (IESA) is focusing on the Internet of Everything. In a step towards this mission, IESA has taken up several manufacturing clusters across India where industry’s best of brains will contribute towards building successful ESDM (Electronic System Design & Manufacturing) hubs. Speaking at the inaugural function of Embedded Systems Conference (ESC) organized by UBM India in Bangalore today, M N Vidyashankar, President, IESA outlined goals and mission of IESA in the coming days. To make India a powerhouse in electronics and semiconductors, India Electronics and Semiconductors Association (IESA) is focusing on the Internet of Everything.

MAIT Applauds Government's Move to Correct Inverted Duty Structure
Source: CIOL; July 16, 2014

MAIT, the apex body actively representing ICT Manufacturing, Training, IT, Design, R&D and associated services sector welcomed the union budget 2014.

The most important decision of this budget has been the steps taken by the government towards boosting domestic production of electronic items and reducing dependence on imports. Rationalisation of Inverted duty structure by exempting 4 per cent special additional duty on laptops and tablets is appreciated by the IT hardware Industry.

Vizag to be made IT capital of Andhra Pradesh
Source: The Hindu; July 16, 2014

IT Minister Palle Raghunatha Reddy said here on Tuesday that the government’s new IT policy would be announced in 10 days to attract large-scale investments.

Single window clearance for new units within four weeks on the lines of Gujarat and special thrust to make Visakhapatnam the IT capital of AP would be the government’s priority, he said after a brain-storming session on ‘Future of IT industry’ organised by Visakhapatnam zone of Confederation of Indian Industry here.

Mr. Reddy said the policy would grant deemed approved status to new ventures if the clearances were not given within four weeks. Post-bifurcation, Visakhapatnam was certain to become the IT capital because of its strategic location.

Odisha Govt ensures safe work culture for ESDM industry
Source: Business Standard; July 16, 2014

The state government has included the ESDM (electronic system design and manufacturing) industry in the lists of first schedule of Industrial Disputes Act 1947 paving way for the eligibility of ESDM units to be declared as public utility services.

"If an industry is declared as public utility services, neither the labourers nor the management can go for strikes and lock outs respectively", an official said.

Security Concerns over Defence FDI Taken Care Of: GOVT
Source: The New Indian Express; July 17, 2014

The Centre has said its latest policy on allowing 49 per cent foreign direct investment (FDI) in the defence sector has taken care of all security concerns, apart from it finalising and putting in public domain a security manual for private players in the sector. Defence Minister Arun Jaitley told the Rajya Sabha in a written reply that since defence companies having the FDI would have Indian management and control, the security concerns are duly taken care of. He told the House that the foreign investment in Indian companies can be made only after approval by the Foreign Investment Promotion Board (FIPB).

India All Set To Become Electronic Hub
Source: Zee News; July 17, 2014

In the years to come India is all set to become an electronic hub as the government has geared up to create a vibrant policy for 'Fabless Design' Industry. The ministry of information technology and brodcasting has approved the proposal and has forwarded the draft report to cabinet for approval. Zee Business is in possession of the draft report. Fabless Design is the design and sale of hardware devices and semiconductor chips while outsourcing the fabrication or "fab" of the devices to a specialized manufacturer called a semiconductor foundry.

Compiled by IESA Research

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