IESA WINWire March 22 - Mar 28, 2014
for Subscription click here  
8th Anniversary

DEITY Constitutes Council To Enforce Local Sourcing
Source:; March 22, 2014

With the recent news of falling domestic manufacturing of electronic products, India is making proactive efforts to counter the slip. To encourage local manufacturing in India, Department of IT and Electronics (DEITY) has formulated the National Planning and Monitoring Council (NEPM). It is expected to implement some domestic electronics sourcing rules for the government contracts.

It is reported that many industry organisations like Indian Electronics and Semiconductor Association (IESA), Telecom Equipment Manufacturers Association (TEMA), ELCINA Electronics Industries Association of India (EEIAI), and Telecom System Design and Manufacturers Association (TSDMA) had written to DEITY, citing concerns over the falling domestic manufacturing. The letter was also sent to the Prime Minister's Office (PMO) and Kapil Sibal, the union minister for telecom and IT.

15% Govt Stake Recommended In Walden's Electronics India Fund
Source: Business Standard; March 22, 2014

A high level group set up to study the proposal of Walden International to set up a venture capital fund has recommended government participation in the fund for fabless design on a non-exclusive basis to the extent of 15%.

Walden International Semiconductor Ventures, LP is expected to invest between $5 million to $10 million in its India arm and plans to invest in electronics chip design start-ups. In order to incentivise domestic electronics manufacturing, the government proposed to set up an Electronic Development Fund under which global funds are being invited to invest in the country with the government participating through a stake of up to 50% in it.

Startups Opening Offices Abroad To Draw Customers
Source: The Economic Times; March 22, 2014

Startups building technology products in India are setting up global marketing offices as the hunt for paying customers takes them abroad soon after inception.

Many of these fledgling ventures that build tools for social media engagement no longer wait to attain size before aiming for global markets. The early users of the technology they create are mostly to be found abroad.

India Must Tap Electronics Market: Sam Pitroda
Source: The Times of India; March 23, 2014

"India has lost a great deal of edge in manufacturing electronic goods due to lack of attention in this sector," claimed National Innovation Council chief Sam Pitroda.

During an interactive session with the members of Confederation of Indian Industry (CII, Mysore chapter) here on Saturday, Pitroda said: "India imports $80 billon worth of electronic goods and exports $100 billion worth of software. We need about 900 million phones, 300 million smartphones, 200 million tablets, 200 million laptops annually. This indicates that there is enough market for $80-90 billion business in India. There is also a great demand for TVs and set-top boxes."

Intel India To Realign Workforce To Tablet, IoT Segments
Source: The Financial Express; March 23, 2014

Global chip major Intel today said it is shifting its workforce internally in India to areas of growth like tablet and Internet of Things (IoT) segments from traditional segments like personal computers.

The company, which has announced it would trim 5,000 jobs globally this year, will not hire manpower in India in 2014.

"Our headcount projection for this year in India is flat. We will not grow our manpower. Instead, we are shifting our manpower internally to areas of growth," Intel India President Kumud Srinivasan told PTI here.

Walden’s Semiconductor Fund Plan Hits The Wall
Source: The Hindu Business Line; March 24, 2014

A proposal by global venture capital firm Walden International to set up a fund to start semiconductor fabrication units in India has hit a roadblock, with the Planning Commission yet to approve the project. The US-based firm had sent a proposal a year ago seeking participation from the Government. A government source told Business Line that the Planning Commission is not in favour of the proposal.

Other members of the Group included Ajay Shankar (Member Secretary, National Manufacturing Competitiveness Council), PVG Menon (President, Indian Electronics and Semiconductor Association) and Saurabh Srivastava, Founder Chairman of Nasscom). “We don’t have venture capitalists in India but vulture capitalists. There are venture capitalists only for software and services like social, mobility, analytics and cloud, but not for such projects (semiconductor fabs),” said PVG Menon of IESA, adding that India is already behind many other countries in making semiconductors because of this.

A New Hope For Electronics Industry
Source: Dataquest; March 24, 2014

This is a very exciting time for the electronics and semiconductor industries. Traditional product categories like entertainment, computing, and even automotive are seeing a stream of new features and innovations, and even more exciting are the completely new product categories like wearable electronics and personal health devices that will drive innovation and growth in the electronics business. The latest report from the India Electronics & Semiconductor Association (IESA) developed in partnership with Frost & Sullivan identifies specific electronic products which drive 80% of domestic revenues-such as mobile phones, flat panel TVs, notebooks/desktops, digital cameras, STBs, power supplies, etc. The report says that providing the necessary support and incentives required to eliminate the disability costs associated with local manufacturing/value addition in these products shall enable enormous development in the overall ecosystem. According to the report increasing total domestic manufacturing to 50% by 2015 will create additional direct employment for nearly 2 lakh people.

Centre Reaches Out To Eminent Pios To Help Electronics Sector
Source: The Hindu; March 24, 2014

The Government has reached out to eminent persons of Indian origin (PIOs) to put together a possible ‘board of global advisors’ that could help in developing the electronics sector in India, according to people with direct knowledge of the matter. The Department of Electronics and Information Technology (DeitY), therefore, is reaching out to Indian-origin persons who could help by contributing their knowledge, experience and expertise. As an initiation of this association, the DeitY intends to constitute an ongoing mechanism to formalise this association as a possible board of global advisors, according to sources. “It has now gotten to a point where even sustaining growth trends in the IT and telecom industries is dependent on the ability to foster electronics design and manufacturing in the country,” said a renowned Indian-American computer scientist, who was contacted by the DeitY but did not wish to be named.

IT dept asks OCAC to set up unit for ICT policy execution
Source: Business Standard; March 26, 2014

For effective implementation of the newly formulated ICT (information and communication technology) Policy-2014, the state IT department has directed its technical directorate Odisha Computer Application Centre (OCAC) to set up a project implementation unit (PIU).

The IT and ESDM (Electronic System Design & Manufacturing) promotion cell of OCAC would be converted to PIU with induction of specialists in the field of management, technology and finance,” Satyabrata Ray, deputy secretary of IT department wrote to the General manager, OCAC.

STPI seeks tax benefits for IT and ESDM units
Source: iGovernment; March 26, 2014

The Software Technology Parks of India (STPI) has urged the state government for reintroduction of provision of zero rated sales under Odisha VAT act for the IT (information technology), ITes (IT enabled services ) and ESDM (Electronic System Design and Manufacturing) units of the state to make them globally competitive in the draft Industrial Policy Resolution (IPR).

Earlier, under section-18, the tax rate levied was zero on the goods sold in course of inter-state trade or commerce, in course of export out of the territory of India or to a dealer having business under Special Economic Zone (SEZ), software technology park (STP), electronic hardware technology park (EHTP) and to export oriented units (EOUs).

Indian Tech Firms Expect Revenue Boost As Us Manufacturers Shift Focus From China
Source: The Economic Times; March 26, 2014

As more and more American manufacturing companies shift production to the US and reduce their reliance on low-cost labour in China, Indian technology outsourcing companies are expecting a big boost in revenues from their manufacturing clients.

The country's top software providers, which work with the world's largest manufacturing firms, believe these enterprises will spend more on building and maintaining new systems for technology and supply-chain as they move production to the US. "This is an extremely important opportunity as more manufacturing arrives in the US,"said Sanjay Jalona, senior vice -president and global head of manufacturing and engineering services at Infosys, India's No. 2 IT services provider.

eInfochips joins elite group of companies to tape-out silicon at 16nm
Source: CIOL; March 27, 2014

eInfochips, a leading semiconductor and product engineering company, launched design services for chips based on 16nm geometry.

The comprehensive suite of services includes Netlist to GDSII, Sign-off, and Design for Testability. eInfochips is one of the few engineering services companies in the world capable of delivering 16nm chip designs which reduce a chip's power consumption by half, while improving performance by one-third over 28nm technology.

Indian women will fuel $3 billion e-shopping
Source: Economic Times; March 27, 2014

Indian women fuelled online shopping worth over half-a-billion dollars last calendar and that figure is galloping five-fold to $3 billion in the next three years.

Women-influenced sales would be 35% of Indian e-commerce market estimated at $8.5 billion by 2016, venture capital firm Accel Partners , one of the prolific backers of startups, said in a report shared with TOI.

These projections come in the backdrop of a frenetic growth in internet penetration through smartphones and women lapping up the convenience of shopping online . Indian e-commerce industry totalled $2 billion last calendar, with women-influenced sales at $511 million, or at 26% of overall market.

IBM eyes India market for its cloud services
Source: Business Standard; March 27, 2014

India will also be part of the $1.2 billion investment that IBM plans to invest in increasing its global cloud footprint. As part of this investment IBMs data centre will go up from 13 now to 40 in 2014.

Among the newest IBM cloud centres to launch will be in China, the US, UK, Japan, India, Canada and Mexico. This is part of the strategy where IBM aims to bring cloud to every corner of the globe.

"The data centre in India will come up in 2014. We are yet to decide the location for this. We are in lot of discussion,” said Vamsicharan Mudiam, country manager, Cloud Solutions, IBM India and South Asia. He did not elaborate on the quantum of investment that IBM will make in India for setting up the data centre.

Compiled by IESA Research

The IESA WINWire is available on the IESA website, To receive IESA WINWire or be removed from our distribution list, email  with "Subscribe" or "Unsubscribe” in the subject box.

All information provided in this document is of a general nature and is not provided with any warranty as to its suitability to the circumstances of each individual business. Readers and users are entirely and individually responsible for taking appropriate action with regard to the setting up of such services and for the consequences of such actions. As per Copyrights Act, 1957 (“Act”) : Publishing articles which contain extracts from other works and providing the source of such extracts will not be an act of infringement of copyrights.

Copyright © 2007, India Electronics & Semiconductor Association


India Electronics & Semiconductor Association
Head office: Unit G-02, Ground Floor, Prestige Terminus-II, 901 Civil Aviation Road, (Old HAL Airport Exit Road), Konena Agrahara,
Bangalore 560 017 | India.  Phone: +91 80 4147 3250 Facsimile: +91 80 4122 1866
New Delhi office: DBS Business Centre, First Floor World Trade Tower, Barakhamba Lane Connaught Place, New Delhi - 110 001 India