IESA WINWire Sep 26 - 0ct 02, 2015
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Tamil Nadu's electronics, IT hardware sectors see recovery
Source: Business Standard; September 26, 2015

The electronics & information technology (IT) hardware industry in Tamil Nadu had felt the heat after the shutdown of Nokia's manufacturing unit in November last year - both in terms of job losses and a drop in exports. However, if a series of announcements in the past few months are anything to go by, there has been some recovery of late. Electronics major Flex has, for instance, announced it will expand its domestic tariff area (DTA). While electronics maker Sony has announced production of television sets, smartphone major Samsung is investing Rs 800 crore in the state. Taiwan-based Delta Electronics is putting Rs 4,000 crore in Tamil Nadu, while contract electronics manufacturer Foxconn has shown interest in starting production here. However, the challenge for the industry in the state, as for most other parts of the country, is the high compliance cost of manufacturing in India. It will need to be reduced for attracting more investment in manufacturing, say industry players. They also want the approval process to be made quicker. Since the Nokia shutdown, around 30,000 people have lost jobs, hitting the sentiment in the electronics cluster. When Nokia's manufacturing was at its peak in 2012-13, electronics and electrical goods' exports from the Chennai airport stood at 23,600 tonnes.

Delta Electronics to invest Rs 1,400 cr in India, hire 5,400
Source: The Financial Express; September 26, 2015

Taiwan-based Delta Electronics will invest USD 225 million (about Rs 1,460 crore) in setting up a power supply manufacturing plant and product development center in India next year. “We are in the process of acquiring land in Tamil Nadu for setting up power supply manufacturing unit. We expect land title to be transferred to us by November. First set of investment of USD 150 million of the total commitment will be made next year,” Delta India Electronics Managing Director Dalip Sharma said at Renewable Energy India Expo. The investment is part of the USD 500 million investment commitment made by the company’s CEO Ping Cheng at Digital India event held in July. Sharma said that Delta will hire 5,000 people for working at this plant over period of next five-seven years. “We expect to approach Department of Electronics and IT for approval under MSIPS by end of this year,” Sharma said. The Modified Special Incentive Package Scheme (MSIPS) provides subsidy for investments in capital expenditure, which is 20 per cent for investments in special economic zones (SEZs) and 25 per cent in non-SEZs. It also provides for reimbursement of countervailing duty or excise for capital equipment for the non-SEZ units.

PM Modi Seeks Make in India in Defence Sector
Source: NDTV; September 26, 2015

With India embarking on a massive defence modernisation programme, Prime Minister Narendra Modi has invited corporate leaders of America's defence sector to manufacture in India. "In the defence sector Prime Minister has been saying from the very beginning that our top priority is that defence manufacturing should be make in India," External Affairs Ministry spokesperson Vikas Swarup told reporters at a news conference in New York. This is the message the Prime Minister conveyed to the Lockheed Martin Chairman Marillyn Hewson and other corporate leaders when he met them in various formats yesterday. "We told them, India offers a huge market for you. India has all necessary facilities for manufacturing. There is a capable work force. We are ready to provide all required facilities for this. Defence manufacturing in India is a win win situation for both of us," Mr Swarup said. During the one-on-one meeting with the Prime Minister Hewson said she is very committed to India. In fact they already have a facility in Hyderabad in cooperation with the Tatas where they are manufacturing tail segment of C-130 cargo planes. Mr Swarup said she discussed aerospace industry with the Prime Minister. It is well known that Lockheed wants to expand its manufacturing base in India in the aerospace industry and has been seeking a series of reforms from the Indian government including increasing the 49 per cent cap on foreign direct investment in the defense sector.

Qualcomm Commits $150 Million Investment in Indian Startups
Source:  The Techportal; September 27, 2015

Qualcomm, the U.S. based electronics giant known for designing and manufacturing those famed snapdragon chips and telecommunication products, has today announced that it plans to invest around $150 million Indian start-ups, as a part of PM Modi’s Digital India Dinner. The company aims to invest across all stages. This announcement comes as a part of the company’s commitment to India during a meeting with Prime Minister Narendra Modi at the Digital Economy event. The new venture fund will be advised by Qualcomm Ventures, which is an investment arm of the group. This fund will fuel innovation and foster promising Indian startups which are contributing to the Mobile and Internet of Everything ecosystem. Qualcomm has been investing in Indian startups since last eight years and has invested in around 20 countries as a part of its global portfolio. It’s targeted sectors include hardware, software platforms, e-commerce, healthcare, location based services and retail technology. It has directly invested in YourStory – a story-telling blogging platform for entrepreneurs, MapMyIndia – a digital map portal for navigation and tracking, Portea Medical – in home healthcare provider, among others.

Start-ups are natural engines of growth & are key to India's transformation: PM at Start-up event
Source: Narendra Modi (press release); September 27, 2015

Thank you, every one! Let's give a big hand to our outstanding young exhibitors today. Thank you for coming out in strength on a Sunday. Reid Hoffman, your LinkedIn is a great product. And, you are an inspiration to many here and in India. Thank you, Mohan, Venkie, Ambassador.

It is a great pleasure to be here. For me, this is a special event, because the idea of startups is close to my heart. You are likely to wonder why, because governments and national capitals are supposed to stop or slow things down, not start them up. I know this was once the view of Washington from Silicon Valley; and, this is exactly how tech specialists in Bengaluru thought about New Delhi.

And, I know that many of you think that the only problems that have not been solved are the ones for which you have not written the apps yet. When I shifted to Delhi last year, I thought of my government as a Startup. So, I also saw some of the bumps you face on the road. I understand your challenges, but also the wonderful feeling of creating something new. The course of human history and progress has been shaped by imagination, inspiration, invention and innovation.

Panasonic targets $2 billion revenue from smartphone by 2018
Source: The Economic Times; September 28, 2015

Panasonic is targeting almost $2 billion (Rs 13,200 crore) in revenue from smartphones by 2018 as it makes a comeback in the business globally, with India as the key sales driver. The Japanese electronics maker's optimism stems from the initial success it tasted in the country and the recent decision to make India its base for expanding business in south Asia and India, Middle East and Africa, Panasonic India MD Manish Sharma said. The company expects local sales to increase more than three-fold by 2018 and account for about half its smartphone revenue target. It plans to start assembling smartphones in India through contract manufacturing in three-four months and later expand into full-fledged manufacturing, Sharma said. Panasonic wants to emulate rival Samsung Electronics, which had more than 70% of its business in India from mobile phones. Panasonic India's smartphone business was Rs 1,800 crore, while the television and home appliances segment was the largest at Rs 4,000 crore in 2014-15. Annual revenue grew 20 per cent.

Make in India: investments worth over $11 b pledged in first year
Source: The Hindu Business line; September 28, 2015

Companies, both Indian and foreign, have announced plans to invest over $11 billion in various ventures in the year since the launch of the BJP-led government’s ‘Make in India’ programme. Some of the notable investment commitments are from Taiwanese electronics major Foxconn ($5 billion), South Korean steel producer Posco ($3 billion), US-based transportation network company Uber ($1 billion), US-based automobiles company General Motors ($1 billion), Noida-based mobile company Lava ($400 million), and Dutch technology company Philips ($60 million), according to the Department of Industrial Policy & Promotion (DIPP). The Make in India campaign was launched by Prime Minister Narendra Modi last September to promote the country as an investor-friendly destination and increase the share of manufacturing to 25 per cent of GDP. As part of the Make in India initiative, the government has set up an expert committee on improving the ease of doing business.

PM in US: 7 MoUs signed to boost startups in India
Source: The Times of India; September 28, 2015

Aimed at giving a big boost to startups in India, as many as seven MoUs have been signed between various organisations of India and the US. The MoUs were signed as Prime Minister Narendra Modi attended the India-US Start-up Konnect 2015 here.

* The first MoU between Centre for Cellular and Molecular Platforms and the California Institute for Quantitative Biosciences is to develop Indo-US Life Science Sister Innovation Hub so as to enhance science-based entrepreneurship, research, academia and businesses by leveraging each other's ecosystems.

* Department of Biotechnology and Prakash Lab, Stanford University signed another MoU on Foldscope -- a frugal science innovation that has emerged from a lab of an Indian with majority of Indians working in this laboratory. The lab will work with DBT to further develop and deploy the products they develop.

National Association of Software and Service Companies (NASSCOM) and the Indus Entrepreneurs signed a MoU to collaborate in a mutually satisfactory form and manner to support the creation of a vibrant ecosystem to foster technology entrepreneurship in India and Silicon Valley.

Here's what you need to know about the Digital India initiative
Source: Daily News & Analysi; September 28, 2015

Several people have changed their Facebook profile pictures after CEO Mark Zuckerberg and Prime Minister Narendra Modi did so and urged other to follow suit to support the Digital India initiative. But wait--this profile picture change actually ties more closely in to Facebook's own strategy, which should not be confused as being congruous with India's Digital India movement.

Launched by Prime Minister Narendra Modi on July 1, 2015, the Digital India initiative was started with a view to empower the people of the country digitally. The initiative also aims to bridge India's digital segment and bring big investments in the technology sector.
What is Digital India?

The Digital India initiative seeks to lay emphasis on e-governance and transform India into a digitally empowered society.

The program is projected at Rs 1,13,000 crore which will prepare the country for knowledge-based transformation

Make in India Targets can be met if MSMEs Grow: Experts
Source: The New Indian Express; September 29, 2015

Textile and apparels, pharmaceuticals, metals and metallics, food processing and automobiles are pegged to be the giant growth wagons in the coming years given their large potential growth in MSME sector. Experts from the Associated Chamber of Commerce and Industry in India (ASSOCHAM) state that to keep in line with the ‘Make in India’ programme’s growth promises these specific industries fulfill five major criteria — market potential, higher industrial productivity, TFP growth, export competitiveness and alignment with the demographic advantage. This was revealed on Monday by ASSOCHAM, which released its first comprehensive pan-industry study titled ‘Make in India: The Next leap’. Looking to bridge that 67 per cent dependence on service industry, experts from ASSOCHAM stated that industrial growth is the call of the hour, as it also creates a significantly larger amount of job opportunities compared to service sector industries. This can be achieved by Micro, Small and Medium Enterprises (MSME), stated D.S Rawat, Secretary General of ASSOCHAM. The returns, job creation and value addition to these industries are larger than others. “Take for instance the gems and jewellery industry, it only creates 7 per cent of manufacturing value addition unlike some others,” states Kshama Kaushik.

BEL to open defence systems integration complex in Andhra
Source: Moneycontrol; September 29, 2015

Navratna PSU Bharat Electronics Limited (BEL) today said it is setting up a defence systems integration complex at Palasamudram in Anantapuramu district of Andhra Pradesh with an estimated investment of about Rs 500 crore over the next three-four years. It will be the largest such facility in the country once it is commissioned, covering an area of over 900 acres, the company said in a release. Defence Minister Manohar Parrikar, will lay the foundation stone for the facility on September 30 in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu and Union Minister M Venkaiah Naidu, among others. "We at BEL have been continuously investing in modernisation and creation of special infrastructure to cater for emerging defence business opportunities. The upcoming facility at Palasamudram is one such initiative," BEL Chairman and Managing Director S K Sharma said. "We are also strengthening our infrastructure in areas like night vision technologies and elements of multifunction radars," he said, adding that various new surface to air missile (SAM) programmes are proposed to be taken up by BEL..

SIITF 2015 retells Digitization story with support from SMBs
Source: VAR India; September 29, 2015

The event commenced with the lighting of the ceremonial lamp in the presence of Mr M. N. Vidyashankar, President, India Electronics & Semiconductor Association (IESA). The Chief Guest for the evening, besides other eminent guests, included Mr Satyen Vyas, CEO, Symphony Summit; Mr A. L. Jagannath, Director – Marketing, India and SAARC, VMware; Mr Sandeep Nagpal, Director – Marketing, SAP India; Mr Ravi Kanakarajan, Head of Commercial & EBG Sales – South, Lenovo India; Mr B. S. Rao, Vice-Pesident – Marketing, CtrlS Data Centers Ltd; Mr H. T. Suresh, Regional Chief, HUDCO India; Mr Suresh Subramaniam, Enterprise Head, Inspira Enterprises India; Mr Prakash, President, AIT; Mr Karthikeyan, President, SIITA; Mr Soumit Bhattacharya, Head – Services, Inflow Technologies; and Mr Nalin Patel, Vice-President, SIITA. Lauding the role of SMEs in driving the IT scenario in the country, Mr Deepak Kumar Sahu, CMD & Publisher, Kalinga Digital Media, said in his address how 2015 will be a remarkable period for both large enterprises and SMEs. “Going by the trends in technologies in 2015, statistics show that adoption of IoT will rise, particularly in the SMB market, and larger organizations that were not early adopters.

Inside India's New and Deadliest Warship
Source: NDTV; September 29, 2015

On a dark moonlit night, an Indian warship pierced the waters of the South China Sea at a brisk 25 knots.

The only sound to be heard was of waves slapping the sides of her sleek hull.

To the untrained eye, she was all but invisible. Her sleek silhouette and her grey paint scheme ensured she blended in with the sea around her. And her distinct, angular lines were meant to make it difficult, if not impossible, for enemy radars to track her - she was, after all, a stealth warship.

But tonight would be different. Tonight, INS Kochi, a state-of-the-art Indian Navy destroyer, built in India over a decade, would be challenged by a worthy adversary. Another stealth ship - a Type 052D destroyer of the Chinese Navy, the Changsha.

Commissioned just a month ahead of the Kochi in August 2015, the Changsha represented the pinnacle of Chinese Naval design and engineering, carrying a world class load of surface to air and anti-ship missiles.

Defence Minister Manohar Parrikar moots special zones for military production, ecosystem
Source: The Economic Times - Indiatimes; September 30, 2015

Defence Minister Manohar Parrikar today mooted the concept of creating special zones for military production and ecosystem.

"I expect you not only to set up missiles manufacturing, integration unit here but also an industrial military complex. Let us start the concept of special zones for military production and ecosystem," Parrikar said.

He was speaking at a function to lay the foundation for setting up of public sector undertaking BEL's Defence Systems Integration Complex at Palasamudram in Andhra Pradesh's Ananthapuram district.

BEL said it would be the largest such facility in the country once commissioned, covering 900 acres and would be built in stages at an estimated cost of about Rs 500 crore.

The city-based defence PSU also plans to expand this facility for creation of a Military Industrial Complex to set up necessary ecosystem for manufacture of electronic components and equipment for various upcoming defence projects in collaboration with SMEs as part of government's "Make in India" initiative. 

Why better IPR will be the key to driving India’s innovation story
Source:; September 30, 2015

The Department of Electronics and Information Technology (Deity) IPR cell has already planned a strong IPR community for the startups. The IPR cell will accelerate the documentation of IPR applications which incorporates licenses, trademarks, copyrights, etc. Industry bodies like India Electronics and Semiconductor Association (IESA) are also making efforts to speed up IP creation in the country and also providing support to the ecosystem through trainings and awareness creation. It is evident from the success of Mangalyaan and Six Sigma certified dabbawalas in Mumbai that India has an incredible designing quality and has the potential to deliver great technology inventions. And, hence it is equally important to nurture the potential and evolve them as India’s homegrown property. The corporates are also putting effort towards strengthening this potential. Wipro, Infosys, and many others are setting up innovation funds to support new ideas and indigenous product creation. In the financial year 2012–2013 Wipro had documented 211 licenses and 334 licenses in 2013–2014. In 2014–2015, the number has grown up to 578.

Compiled by IESA Research

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