IESA WINWire May 30 - June 05, 2015
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10th Anniversary

'IoT Has Low Barriers to Entry'
Source: Business World; June 1, 2015

M N Vidyashankar, a former bureaucrat, served as the Principal Secretary of the Karnataka government for several years. He was in charge of various portfolios such as the Information Technology and Bio-Technology departments before retiring in 2013. In one year as the head of the Indian Electronics and Semiconductor Association (IESA), he has been championing the cause of startups as the next big avenue for job creation. He has also actively campaigned against reforming labour laws, which have stunted growth and investment. Here are the excerpts of the interview:

What is the potential of the semi -conductor industry in India?
It generates a great interest because it has the potential to provide more jobs and increase India’s power a global research hub. Traditional software services have peaked. The rate of growth is not going to be same because of competition from Eastern Europe, South America and the Philippines are developing very important BPO services and software testing businesses. Sri Lanka is becoming a very important BPO destination as well. In that context, chip level design is going to be great opportunities for India. We need to now think of manufacturing to support the semiconductor industry. There is no way out for us because we need to create jobs. Manufacturing requires three things. One is land, second is power and the third is labour.

Govt approves 40 electronics manufacturing proposals
Source: Business Standard; June 2, 2015

The number of proposals received and approved for manufacturing of electronics has seen a big jump over the past year.

According to data from the department of electronics and information technology, the January-March period has seen a 900 per cent jump over the same period last year in the value of investment approvals under the Modified Special Incentive Proposal Scheme (M-SIPS).

In January-March 2014, proposals worth Rs 289 crore were cleared. In the same period of 2015, these were worth Rs 3,059 crore.

Officials are attributing this to the ‘Make in India’ campaign, a flagships project of the Narendra Modi government, beside the outcome of past efforts to boost electronic manufacturing in the country.

'We need smart villages, not just cities'
Source: The Times of India; June 2, 2015

Political parties need to join hands to find a solution. There needs to be brainstorming over reasons behind decline in public investment in agriculture, social security coverage schemes need to be devised for farmers and landless laborers. There need to be proper insurance schemes for the farmers to help them sail through calamities and inopportune circumstances. There have been numerous 'padyatras' and demands for giving compensation/loan waivers to the affected farmers but that, to my mind, is only a temporary measure. Even the subsidies being doled out presently are only friendly towards the rich farmers. What is the need of the hour is to make an effort to help the marginal farmer. Haryana agriculture minister Om Prakash Dhankar reportedly suggested that those who commit suicide are cowards and criminals, and deserve no state help. As the politics wages on, farmer Gajendra Singh's suicide and that of thousands of others are reflective of the plight of farmers pushed to end their lives, while the state turns its back on them.

L&T sees $4 billion orders in a sign of investment revival
Source: Mint; June 2, 2015

After three years of slowing sales growth, India’s largest project execution company is seeing early signs of a recovery on the back of a pickup in investment by state-owned enterprises.

R. Shankar Raman, the chief financial officer at Larsen and Toubro Ltd, says he is spending twice as much time on “pre-bid risk reviews” than a year ago, an indication the company is more positive on outlook. Defence procurement and spending by refiners alone may help Larsen win contracts worth at least $4 billion in the next few years, he said. “There’s more optimism now than a year back,” Raman said in an interview. “If the volume of bid bonds keeps increasing, we see it as a healthy sign of growing project pipeline. It will reflect in the revenues two years later.” Larsen is among Indian companies betting on higher public spending by Prime Minister Narendra Modi to kick start the $1.8 trillion economy as debt laden non-state companies hold back investment while banks struggle to pare bad loans. Larsen’s profit fell in the last two years and its shares have trailed the benchmark index in the past 12 months. Data last week showed private investment fell to 23.3% of gross domestic product (GDP) in the year ended March 2014, from 28.4% two years earlier, while government spending slowed to 32.3% of GDP versus 38.2%. If the weaker numbers persist, Larsen’s prospects may get bleaker.

Technology transfer by Israeli cos can be a huge plus for India: Bharat Malkani
Source: Business Standard; June 3, 2015

Israeli defence exports to India top $1 billion annually. Prime Minister Narendra Modi's maiden visit to Israel is expected to give further push to defence ties. In an interview with Sanjay Jog, Bharat Malkani, co-chairman of the FICCI committee on aerospace and defence explains the road ahead. Edited excerpts:

What are your expectations from Prime Minister Narendra Modi's Israel visit? How can the partnership with Israel be extended?

There are no direct numbers available with me, but the trade in defence co-operation between the two countries should be in the billion dollar range. India has a number of programs ongoing with Israel especially in aerospace and land systems.

Telangana's IT/ITeS exports touch 66Kcr
Source: Times of India; June 3, 2015

On its first birthday, Telangana has some good news to cheer about. The state's IT/ITeS exports shot up 15.7% in 2014-15 to Rs 66,276 crore from Rs 57,258 crore in the year ago period, revealed the annual report of the IT&C department that was unveiled by IT and panchayat raj minister K T Rama Rao on Tuesday.

The state aims to double its IT/ITeS exports in the next five years to around Rs 1.20 lakh crore, said KTR while pointing out that Telangana's IT/ITeS exports growth outstripped the national IT/ITeS exports growth rate of 13%. Interestingly, the IT-BPM sector contributed 21% to the total GDP of Telangana as compared to 8.1% of India's GDP.

On the job front, the IT/ITeS industry added 50,000 direct jobs in 2014-15, taking the total number of jobs to 3,71,774 from 3,23,396 in 2013-14.

Cos show renewed interest in telecom, IT sectors: Prasad
Source: Times of India; June 3, 2015

Telecom & IT minister Ravi Shankar Prasad on Tuesday said that increased transparency and stable policy regime have led to the return of investments in the sector at a time when the government is working on crucial issues such as net neutrality and the next phase of spectrum auctions.

Speaking at a conference to mark the completion of one year of the NDA government, Prasad said that the telecom sector as well as the IT industry is witnessing a "renewed interest" from companies as the government works on incentives for encouraging manufacturing of electronics in the country as part of the 'Make in India' initiative.

The minister also said that the government is taking steps to revive the ailing state-owned telecom PSUs — MTNL and BSNL. "We have been working on a plan and there has been some progress in their performance. We plan to take further steps to improve their working."

Smart City project will lend momentum to Internet of Things in India: Intel
Source: Hindu Business Line; June 3, 2015

Internet of Things (or IoT) will get a push in India through the "100 smart cities" initiative taken-up by the Union government.

According to Doug Davis. Senior Vice President and General Manager of IoT, Intel, the big opportunity for it (IoT) is "the initiative to go out and deploy smart city solutions".

The Union Cabinet gave the go ahead to the "smart city" project earlier this year; and 100 existing cities have been identified with an allocation of nearly Rs. 6,000 crore in this regard.

Many countries like the US, Spain, Singapore, etc have envisaged their interest in partnering with India in developing these smart cities.

"If you ask me, then bringing in capacity and solution deployment (for smart cities) is the biggest (scope) in the horizon," he told BusinessLine in response to a question on the opportunities for IoT in India.

Mobile phone manufacturing hub to come up in Hyderabad
Source: Business Standard; June 3, 2015

A group of mobile phone manufacturers have come forward to set up a manufacturing hub in the city. A delegation of senior executives from mobile phone manufacturing companies headed by Indian Cellular Association president Pankaj Mohindroo met Telangana chief minister K Chandrashekhar Rao on Tuesday after visiting a proposed site on the outskirts of the city. According to the chief minister's office, Rao has sought a detailed project report with a list of requirements apart from land so that the government can provide infrastructure and other support. The project is expected to generate 1,50,000 -2,00,000 jobs. Karbonn Mobiles Chairman Sudhir Hasija, Foxconn India managing director Josh Foulger and Celkon managing director Y Guru, among others, were present in the meeting. “The state government and the companies have entered into a broad understanding to set up the country's first mobile phone manufacturing hub in Hyderabad," the chief minister's office said in a statement. The IT sector exports grew 15.7 per cent at Rs 66,276 crore from Hyderabad in 2014-15 against Rs 57,258 crore in the previous year. About 48,000 new jobs were created during the period, according to the report.

Call for entries: Electropreneur Park incubation centre for electronics startups goes live
Source: Firstpost; June 4, 2015

Electropreneur Park (EP) -- the first of its kind incubation centre for electronics startups which is supported by DeitY and STPI and implemented by IESA at University of Delhi -- makes a clarion call to encourage innovation in the domestic ESDM (Electronic System Design & Manufacturing) space.

Under this entrepreneurship programme, EP will select the best 10 early stage entrepreneurs in ESDM across the country, based on the merit of the project submission and will support them in research and development to accelerate electronics innovation in the country.

The EP initiative will support 50 startups in ESDM space and is expecting to create 5 global companies over a period of 5 years.

The park will focus on IP creation and Product Development to result in increased domestic value addition and will witness a unique integration of academia, industry, government and other incubation eco-system elements.

India needs to produce more sensors for land, air navigation'
Source: Zee News; June 4, 2015

India needs to produce more sensors for land and air navigation, which can enable the country to fulfill its defence requirement and export surplus, a senior DRDO scientist said on Thursday.

"If you look at the land and aircraft navigation, the quantity, as in the requirement of sensors is enormous. The land navigation requirement could go into thousands and the same is with aircraft navigation. But ship requirement one could definitely be able to meet," said G Satheesh Reddy, senior DRDO scientist and scientific advisor designate to the Defence Minister.

"We should not only be able to meet the domestic requirement, but also be able to export. BEL (Bharat Electrical Ltd), Hindustan Aeronautics Limited (HAL) are working on it," he said.

Reddy was speaking here at a seminar on 'Building Comprehensive Capabilities in R&D and Manufacturing Strategic Electronics' organised by Vivekanada International

Why smartphone makers are in a rush to 'Make in India'
Source: Financial Express; June 4, 2015

Spurred by Prime Minister Narendra Modi’s call to ‘Make in India’, most Indian mobile phone ‘manufacturers’, who make the bulk of their phones in China, as well as their multinational rivals, have been talking about moving their assembly lines to India.

Micromax subsidiary Yu Televentures has announced that the next batch of its phones will be made in India, while Lava’s Xolo has announced a new sub-brand called Black, to be made at their facilities here. Even bigger players like Samsung have joined in — the Korean major has announced that its flagship Galaxy S6 phones would soon be assembled in India. The Chinese companies have not been left behind — Oppo has announced it is setting up a manufacturing facility in India. And newer players like Coolpad and Phicomm are talking about Make in India.

Country will witness solar power trains soon: Harsh Vardhan
Source: IBNLive; June 4, 2015

Union Minsiter Harsh Vardhan said that the Centre was working on solar train project in association with Integral Coach Factory (ICF) and IIT Madras and it would roll out soon.

Vardhan, Minister of Science and Technology and Earth Sciences, said solar powered carriages will be developed to curb dependence on fossil fuels and power grid. The minister was addressing the inaugural function of automatic solar energy module production plant at Central Electronics Limited (CEL) in Sahibabad on Wednesday.

He said the product will give a boost to Prime Minister Narendra Modi's 'Make in India' drive. The minister further said, solar energy will mitigate global warming by reducing the emission of greenhouse gases. It will also diminsh dependency on fossil fuels.

The solar unit will also help the citizens to overcome the electricity crisis. MP V K Singh (retired general), Minister of State for Science and Technology and Earth Sciences Y S Chowdhary and Sahibabad MLA and BSP member Amarpal Sharma were also present at the event.

IESA-STPI to promote electronics start ups
Source:; June 4, 2015

STPI( Software Technology Parks of India) has partnered India Electronics and Semiconductor Association (IESA) to set up an ‘Electropreneur Park’, aimed at supporting 50 start-ups working on electronics product designing and development over the next five years.

The initiative, which has a corpus of Rs.22 crore, will focus on IP creation and product development to increase value addition in domestic manufacturing of electronic items like smartphones, smart meters, micro ATMs and set top boxes.

“Under the programme, we will select the best 10 early stage entrepreneurs in ESDM (Electronic System Design and Manufacturing) across the country, based on the merit of the project submission and will support them in R&D to accelerate electronics innovation,” STPI Director General Omkar Rai told PTI. The initiative is a subset of the government’s ‘Make in India’ mission, aligned with entrepreneurial and innovation focus, he added.

LDRA, IESA and SIATI commit Certification Ecosystem Development Program in India
Source: ELE Times; June 4, 2015

LDRA adheres with industry bodies, India Electronics & Semiconductor Association (IESA) and Society of Indian Aerospace Technologies & Industries (SIATI) to jointly announce the Certification Ecosystem Development Program (CEDP) in India as a precursor to the upcoming event – Embedded Safety and Security Summit (ESSS 2015), on 17 June at the NIMHANS Convention Center, Bangalore.

Comprising several components, the CEDP will incorporate the LDRA Academic Alliance Program (LAAP) in which LDRA will work with leading Indian universities to build a curriculum aimed at educating engineering students and building a competitive and experienced workforce. In addition, LDRA’s Competency Centre (LCC) will serve as a world-class training center for safety and security practices.

Compiled by IESA Research

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