IESA WINWire June 13 - June 19, 2015
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Electropreneur Park invites ESDM startups for an incubation program
Source: EE Herald; June 14, 2015

Department of Electronics and Information Technology (DeitY), Software Technology Parks of India (STPI) and India Electronics and Semiconductor Association (IESA) together joining hands in starting an incubation program called Electropreneur Park (EP) for electronics and semiconductor start-ups in India. They are looking for kind of start-ups with breakthrough technology or ideas who can create IP as well as local electronics source, so that import dependence on electronics will be minimised. Electropreneur Park plan to support up to 50 startups with financial funding, software and hardware tools support (EDA and test and measurement for semiconductor and electronics), assistance during prototyping, and development and commercialisation of the products. Electropreneur Park going to be located in the campus of Delhi University, which is also part of this program. To start with Electropreneur Park has invited start-ups to submit plans before 20th of June 2015 to get selected for this incubation program. Electropreneur Park to scrutinise the proposals for both technical as well as commercial feasibility.

‘India seems to be an alluring destination for handset makers’
Source: The Financial Express; June 15, 2015

Growth in Indian economy has predominantly been driven by the services sector. While services have contributed to the GDP in a major way, the share of manufacturing sector has remained stagnant at 16% for nearly three decades. Currently, India is contributing to 2.2% of the world’s total manufacturing output which is very low in comparison to economies like China, Japan, Germany and USA where manufacturing sector is increasing rapidly. This is indicative of the fact that the true potential of the manufacturing sector in India is yet to be tapped. The manufacturing sector in India has the potential to reach $1 trillion by 2025 and contribute approximately 25-30% to India’s GDP which should put India at par with economies like China, Germany, Japan and USA in terms of contribution to GDP. Though the Indian ecosystem is conducive for many industries to start domestic production, one industry which can hugely leverage this is the mobile handset and component industry, considering that India is one of the fastest growing markets in the world for mobile phones.

Govt to revamp sourcing, testing of telecom gear
Source: The Times of India; June 15, 2015

The government is looking at a major overhaul of telecom equipment sourcing and testing in India as it fears that unfettered supplies from foreign vendors, including Chinese companies, are making the system susceptible to spyware and malware from unfriendly countries and anti-national activists. A Cabinet note is under preparation to work out standards and order in-country testing of critical telecom equipment as these have the potential to become easy conduits for spying and leakage of information, official sources told TOI. India imported telecom equipment, including electronic devices, to the tune of nearly Rs 70,000 crore in 2013-14 (Rs 57,000 crore in 2012-13). Alarmingly, a little over 60% of these imports emanated from China. Apart from the various electronic devices that make their way from the dragon land, Chinese vendors such as Huawei and ZTE also sell crucial telecom equipment in India. Other foreign players that supply sophisticated telecom equipment include Sweden's Ericsson and Finland's Nokia Networks.

Maharashtra government invites Foxconn to set up iPhone manufacturing unit
Source: BGR; June 15, 2015

The Maharashtra government said it has invited iPhone manufacturer Foxconn to scout for locations in the state for setting up iPhone unit. “Foxconn is sending a delegation of their officers to scout for locations in Maharashtra. We expect it to visit the state in a month’s time,” state industry minister Subhash Desai told PTI. During his China visit in May, Chief Minister Devendra Fadnavis had met representatives of the leading Taiwan-based electronics giant Foxconn. Visited the leading electronic manufacturer Foxconn, had good meeting with the founder Terry Gou and his team,” Fadnavis had said. ”Very happy to know from Terry that Foxconn is keen to invest in Maharashtra for data centres, mobile phones, tablets, television, etc. A detailed plan on proposed investments in Maharashtra for 2015-2017 too was presented by Foxconn. Had a great discussion on it,” the Chief Minister had said.

After acquiring Pipavav shipyard, Anil Ambani goes big on defence, raises 11 new companies
Source: The Economic Times; June 15, 2015

After acquiring the Pipavav shipyard, Anil Ambani has made his firmest step into the defence industry, creating a cluster of companies and applying for over a dozen licences in the past weeks to design, develop and manufacture military equipment ranging from UAVs and spacecraft to submarine systems. In a quiet move, Reliance Defence Limited (RDL) has raised 11 new companies focused on defence — each of them targeting a potential market of at least Rs 10,000 crore. These companies, executives say, will be used as joint venture partners with foreign manufacturers looking at the Make in India initiative or for licence production of equipment. It is also looking to export defence products from India. In a firm indication that his interests go beyond just ship building and helicopter manufacturing, Ambani has applied for at least 13 new licences to develop and produce military systems, with the hope for clearances by the end of this year. "The group will aim at a leadership position in the sector and is committed to deliver on time and give the best value proposition," Rajesh Dhingra, President, Reliance Defence &Aerospace Pvt Ltd told ET, confirming the developments.

Electronics manufacturing proposals of Rs 65,000 cr received: Ravi Shankar Prasad
Source: Financial Express; June 15, 2015

Government has received proposals worth Rs 65,000 crore for electronics manufacturing in the country, Telecom Minister Ravi Shankar Prasad said today. “In principal approval has been given to 21 electronics manufacturing clusters. Almost Rs 65,000 crore worth proposals have been received under MSIPS and Rs 9,000 crore of which have been approved,” Prasad said while speaking at an event here. The minister said that electronics is going to drive growth of India, revenue and employment in the country. Government has identified manufacturing as one of important pillar of growth. The minister said that Prime Minister Narendra Modi will inaugurate a massive Digital India programme on July 1. “We are planning to celebrate Digital India week which will be inaugurated by the PM,” Prasad said. IT industry body Nasscom and the India Electronics and Semiconductor Association today entered into agreement to work together with an aim to push the share of electronics manufacturing and IT to 25 per cent of the country’s GDP by 2025.

Pushing electronics manufacture ‘needs correction of duties’: Prasad
Source: The Hindu Business line; June 15, 2015

Skewed duty structures will have to be set right in order to promote electronics manufacturing, Union Minister for Communications and Information Technology Ravi Shankar Prasad said on Monday.

Speaking here at the MoU signing ceremony between National Association of Software and Services Companies (Nasscom) and India Electronics and Semiconductor Association (IESA), Prasad, however, acknowledged that to correct this anomaly structure, Finance Minister Arun Jaitley will have to be convinced. Electronics manufacturing is on the rise and will drive India’s growth, revenue, and employment potential, Prasad said, adding that in-principle approval has been given to 21 electronic clusters in the country. The MoU aims to push the share of electronics manufacturing and IT to 25 per cent of the country’s GDP by 2025. The tie-up will create a common agenda that will guide the government and industry to construct policies and an environment leading to the creation of electronic system design and manufacturing and IT products, solutions and brands out of India. Vinay Shenoy, Chairman, IESA, said, “By joining forces, we are now better able to address 'Device-Infrastructure-Application' and the interplay between them. Initial focus areas are likely to be policy frameworks, enabling capability build up, knowledge sharing, ecosystem discovery and promotion.”

Make in India and Digital India: Nasscom, IESA sign pact to push IT, electronics manufacturing's share to 25% of GDP
Source: The Economic Times; June 16, 2015

The government has approved 21 electronic clusters, telecom minister Ravi Shankar Prasad said on Monday. "We have given in-principle approval to 21 electronic clusters and electronic manufacturing is priority area for us," Prasad said. The minister was speaking at the occasion of the software lobby group Nasscom and the India Electronics and Semiconductor Association (IESA) signing a memorandum of understanding to jointly work to boost the government's Make in India and Digital India initiatives. Through this partnership, the two industry groups are aiming for IT and electronic system design and manufacturing (ESDM) to contribute 25% to the country's GDP by 2025 that propel India into the world's top five economies. Prasad said the government has so far received investment proposals worth Rs 65,000 crore while it has approved proposals worth Rs 9,000 crore under the modified special incentive package scheme or MSIPS programme, which aims to promote large-scale manufacturing in electronic system design and manufacturing. Under the MSIPS programme, a subsidy of 20% in capital expenditure is given to companies for investment in SEZs and 25% in non-SEZs.

Micromax to invest Rs 500 crore in Hyderabad plant
Source: Telecom Lead; June 16, 2015

Micromax will set up its manufacturing plant in Hyderabad with an investment of Rs.400 crore to Rs.500 crore. The unit will come up at mobile manufacturing hub, proposed to be developed in Electronic Manufacturing Cluster (EMC) here. State Information Technology, Electronics and Communication Secretary Jayesh Ranjan said that the hub will come up in EMC. “There is 1,000 acres of land available in EMC,” he told reporters on the sidelines of an event. The EMC is coming up in Maheswaram in Ranga Reddy district near Hyderabad. The government had originally allotted the land in 2008 for Fab City, a special economic zone for semiconductor companies, which did not take off. The state government and Indian Cellular Association (ICA), the apex body of the mobile industry comprising manufacturers, brand owners, and application and solution providers, recently agreed to establish a first-of-its-kind mobile manufacturing hub. Representatives of various handset companies last week visited the site.

ICA national chairman Pankaj Mahindroo, Karbon mobiles chairman Sudhir Hasija and Celkon M.D. Y Guru had last week called on Chief Minister K Chandrasekhar Rao. The proposed hub is expected to generate 1.5 lakh to 2 lakh jobs. Karbon and other manufacturers have evinced interest in setting up their units. Foxconn Group president Calvin Chin had also called on the chief minister here last week.

Nasscom, IESA are partnering for Make in India, Digital India
Source: The Times of India; June 16, 2015

Indian software and hardware industries are partnering to make the NDA government's 'Make in India' and 'Digital India' initiatives a reality soon, their officials said.

The partnership will create a major force in the Electronic System Design and Manufacturing (ESDM) industry and the IT landscape to position India among top five economies in the next decade, top officials of the hardware and software industries associations told reporters.

The partnership between the software and hardware representative bodies -- the National Association of Software and Services Companies (Nasscom) and India Electronics and Semiconductor Association (IESA) -- is aimed at making India a leading player in the IT and ESDM space over the next decade, they said.

Flextronics gets DTA status for its Chennai facility
Source: Business Standard; June 16, 2015

Electronics maker Flextronics has been granted the domestic tariff area (DTA) status for its Sriperumbudur facility, allowing the company to ship finished goods locally.

Flextronics has been operating in Chennai from 2005, at the SIPCOT special economic zone (SEZ).

The company said by having both DTA and SEZ status, it would be able to produce and deliver products for both domestic and export markets, with zero customs duty.

The DTA status provides an added competitive advantage for Flextronics and would allow to service the domestic market and deploy its supply chain services to support the growing Indian electronics sector.

Richard Hopkins, Flextronics’ vice president , operations, said, “We also have the right building blocks and capacity to help our global customers, who wish to build, repair and ship their products anywhere in India”.

The India Electronics and Semiconductor Association (IESA) estimated the electronics industry opportunity in the country at $400 billion by 2020.

Dutch telecom major eyes Gr Noida after Taiwan firms
Source: The Times of India; June 16, 2015

After a Taiwanese consortium, a Dutch telecom company is planning to invest in Greater Noida. Scarlet, an internet service and telephony provider, is scouting for 200 acres of land to set up an electronic product manufacturing unit in the city, sources said on Monday. According to sources, a meeting is scheduled between the representatives of the company, which has operations in Belgium as well, and Uttar Pradesh chief secretary Alok Ranjan in Lucknow on Tuesday. The company officials had earlier met the chairperson of Greater Noida and Yamuna Expressway Industrial Development Authority Rama Raman. The state government is likely to make an initial offer to the company for setting up its plant in Greater Noida's electronic manufacturing cluster, sources said. Talks with some leading electronic goods companies from Japan, Korea, Taiwan and China are also in the final stages after they have expressed interest in setting up units in both Greater Noida and YEIDA areas, officials said. Last week, Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) had met the chief secretary in Lucknow and expressed an interest to invest USD 200 million in the electronic manufacturing cluste.

India is incredibly important for us: Nokia's EVP
Source: ET Telecom; June 16, 2015

Nokia Corp says it doesn't wish to make arbitration a priority to resolve the ongoing tax dispute before exploring other amicable means of settling the issue. Nokia's EVP for marketing and corporate affairs Barry French, told ET's Gulveen Aulakh that tax issues aside, India was a critical market and would become even more significant after the merger with Alcatel Lucent. The Finnish company even underlined India's potential as a manufacturing hub and urged multinationals not to be scared off tax issues, as there are immense benefit.

What brings you to India?
We have a massive presence here, close to 12000 employees. As you know we've got some issues here as well, so maintaining a continuous dialogue is important to us. We raise the issues around the asset freeze and tax issues and so on.

From zeal to appeal: inspiring stories of 20 Indian innovators
Source:; June 17, 2015

India needs much more creative thinking and effective innovation to solve its numerous problems and tap global opportunity; indeed, the problems faced by entrepreneurs in India are often much greater than in mature economies.

The 210-page book ‘Indian Innovators: 20 Brilliant Thinkers Who Are Changing India’ by Akshat Agrawal presents a new facet of India – innovators who refuse to accept defeat and are hell-bent on proving the country’s potential.

Anirudh Sharma has created a haptic shoe for the visually impaired. He was a ‘troublemaker’ and tinkerer in childhood, and moved from Delhi to Rajashtan to study at RTU Bikaner. His team of fellow students won competitions at BITS Pilani, and he worked at the Google Summer of Code programme.

Hemanth Satyanarayana has developed augmented reality-based virtual trial rooms for consumers to try out clothes digitally. He graduated from IIT Madras and SUNY Buffalo, where he worked with a startup on training simulators.

Samsung toasts its 'Make for India'
Source: Deccan Herald; June 18, 2015

When Prime Minister Narendra Modi announced the Make in India initiative, with an aim to boost the country’s manufacturing sector, many companies came forward with their investment plans for India. Korean electronics major Samsung has gone a step further with its new strategy ‘Make for India’. In an interaction with Deccan Herald, Ranjivjit Singh, Chief Marketing Officer, Samsung India, said: “We are making in India for a very long time, and we came up with the ‘Make for India’ strategy in April this year. Samsung India has been here for more than two decades, and we are here because of Indian consumers.” “It is important to design products that are very relevant to Indian consumers. Whether the person is a housewife, student, or an enterprise worker, Samsung products are customised for users,” said the CMO, adding the company studies customer habits and how they use products so as to understand their requirements. Samsung employs 45,000 people in India, and the India CMO said some of the sophisticated features of Samsung products are developed through the R&D (research and development) centres in India.

Make in Electronics on Drive – PM Modi to commemorate Digital India on July 1
Source: ELE Times; June 18, 2015

Electronic is the pilgrim for the evolving young India- Telecom Minister Ravi Shankar Prasad asserts that Government has received proposals worth Rs 65,000cr for electronics manufacturing in the country. The minister said that electronics is going to drive growth of India, revenue and employment in the country.

Government has identified manufacturing as one of important pillar of growth.
“In principal approval has been given to 21 electronics manufacturing clusters. Almost Rs 65,000cr worth proposals have been received under MSIPS and Rs 9,000cr of which have been approved,” Prasad said while speaking at an event here.

“The collaboration between Nasscom and IESA is a natural outcome of similar goals and mindset. We have signed memorandum of understanding (MoU) with Nasscom with a vision to take share of ESDM and IT in country’s GDP to 25pc by 2025,” said IESA Chairman Vinay Shenoy

Compiled by IESA Research

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