IESA WINWire Apr 02 - Apr 07, 2016
for Subscription click here  
11th Anniversary

Indian handset makers to government: Don't change current duty structure
Source: The Times of India; April 2, 2016

India's local manufacturers have asked the finance ministry to delay by two years changing the duty structure which will make import of batteries, chargers and wired headsets more expensive, but will make local manufacturing of these products cheaper. Local electronics manufacturing association, in a recent letter, has asked the government to continue with the current duty differential for two years, giving the industry time to prepare and bring component makers and local manufacturing to India to create a required ecosystem. "The current available duty exemption may kindly be made available for at least two more years so that the industry and ecosystem partners can be prepared," said Ravinder Zutshi, chairman of Mobile and Communication council under Consumer Electronics and Appliances Manufacturers Association (CEAMA). "Manufacturers supporting the Make in India programme are finding the proposal extremely disadvantageous. The local component ecosystem is still not fully in place, resulting into dependence on international ecosystem for components," the group said in a March 14 letter.

The government has levied basic customs duty (BCD) of 10%, countervailing duty (CVD) of 12.5% on imports of chargers, adapters, battery, wired headsets and speakers used in mobile phones.

Govt admits low production of STBs, urges more players to manufacture under Make in India Initiative
Source: Indian Television; April 2, 2016

The government today admitted that less than 10 per cent set top boxes being used in India were Indian made. However, Information and Broadcasting Secretary Sunil Arora said the government and his ministry were completely committed to the digitization programme. Arora said, “We want the industry to look at this opportunity under the Make In India initiative and produce more STBs in India under the Electronics Manufacturing scheme”. The ministry remained committed to promoting ease of doing business in the media and entertainment sector, Arora said in a dialogue with Star India CEO Uday Shankar and veteran filmmaker Ramesh Sippy at FICCI Frames 2016. He said the Ministry was also guided by the ‘minimum government, maximum governance’ philosophy. “One of our primary objectives is to bring down the number of visitors to Shastri Bhavan to a trickle. We want to move towards less regulation and facilitate India to become the hub of media and entertainment industry."

Arora claimed that clearance for new TV channels had been expedited over the last six months under a liberalized regime. He said the home ministry had agreed to most of the suggestions made by the I&B ministry about liberalizing several conditions. Arora stressed that the ministry intends to play a role of a facilitator for the media and entertainment industry to flourish in the country.

Morning briefing: Foxconn locks horns with Apple
Source: ChannelWorld; April 2, 2016

Foxconn locks horns with Apple with its $3.5 billion bet. What makes industry insiders a wee skeptical is that billions of dollars are likely to be spent on building production lines that yield no profit for several years. As Digital India gathers steam, hardware industry body MAIT, in association with Intel and Datamini, launched a device with an Aadhaar authentication feature. There’s also a possibility of this feature finding usage in the 'Pradhan Mantri Jan Dhan Yojana'. With more and more companies joining the pursuit of the cyber-security Holy Grail, KPMG launches an app that can assess your cyber-security index. The ‘Cyber KARE’ toolkit is touted to be an acid test to put your security through the wringer. Meanwhile, Microsoft’s man at the helm, Satya Nadella emphasized the need for man to collaborate with machines. He announced that the company is working on building intelligence that augments human abilities and experiences. Chances are that you’re done with your annual appraisal, all happy and content. Now, take a look at which CEO rakes in the most moolah.

Government launches intellectual property information portal
Source: The Times of India; April 2, 2016

The government today launched a portal which will act as a single window interface for information on intellectual property and provide guidance on leveraging it for competitive advantage. The Indian IP Panorama is thus a customised version of WIPO's original product and is in accordance with Indian IP laws, standards, challenges and needs of the Indian ICTE sector, he said. The toolkit has been adapted to cater to SMEs and start-ups, especially in the ICTE sector of India, based on an agreement signed between WIPO and DeitY. The five modules of the Indian IP Panorama include importance of IP for SMEs, Trademark, Industrial design and Invention and Patent. The Indian IP Panorama has been developed under the aegis of Department of Electronics and Information Technology (DeitY) and DIPP, Government of India by Centre for Development of Advanced Computing (C-DAC), in close coordination with the Indian IP office.

Defence manufacturers hail DPP
Source: Webindia; April 3, 2016

The new Defence Procurement Procedure (DPP),which was announced by the Defence Minister Manohar Parrikar while inaugurating 9th edition of Defence Expo at Naqueri-Quitol in South Goa on March 28 last, has been hailed by defence equipment manufacturers. The industry leaders have welcomed the new policy which has among other things a category called Indian-designed developed and manufactured (IDDM) which is aimed at increasing indigenization offence manufacturing. However, Mr Parrikar had said that the policy was not a perfect document and would be examined after six months. "The policy will be examined after six months and we are open for suggestion to improve" Speaking to UNI, Ashok Atluri, Managing Director, Zen Technologies, said the new DPP is the biggest thing which has ever happened in the history of government procurement. The DPP will help companies like Zen Technologies. Many companies will come up with three years of investment as now they would be assured of orders.''

Mr Zen, whose company provides simulation technology based training solution, said "IP has to be in the country. If we collaborate with foreign companies, we get certain portion of income and rest goes to the major company. But if we invest on research and development (R&D) and develop our own products, we can get lotof orders.''

10 IoT hubs to be set up across the State
Source: The Hindu; April 4, 2016

Ten Internet of Things (IoT) hubs will be set up across the State either with government or private efforts as part of the decision to transform the State into a Silicon Corridor. The hubs will come up at major towns. Investments in domain-specific hubs will be sought with total private investment or on public-private partnership (PPP) mode. The government has promised a slew of incentives after unveiling its IoT Policy for 2016-20. IoT is a network of physical objects, devices and other items embedded with electronics software, sensors and networks of connectivity. Besides IT and electronics, social mobility, analytics and cloud series (SMAC) is being encouraged in a big way. “The places where the hubs will come up will be finalised shortly. The government will zero in on areas based on domains that suit different places,” CEO of AP Electronics & IT Agency A. Srinivasa Moorthy told The Hindu on Saturday. GO Ms. No. 5 dated March 31, 2016 issued by the IT and Communications Department says the focus of investments will be in R&D, IoT devices and manufacturing, software applications and analytics and office space and other infrastructure. Land allottees have to create employment.

‘Happening Haryana’ to ‘Invest Karnataka’, states should compete for Make-in-India
Source: The Financial Express; April 4, 2016

From ‘Happening Haryana’ to ‘Invest Karnataka’, television and radio advertisements today reflect a completely new facet of India’s federal structure. The year 2016 started with West Bengal’s global summit where “Come to Bengal, ride the growth” hit the right note with investors. The state managed to garner total investment commitments to the tune of R2.5 lakh crore. While West Bengal was riding high on the success of the two-day event, Karnataka—India’s silicon state—was not behind with total commitments of R1.3 lakh crore across sectors like energy, pharmaceuticals, tourism, etc. Amidst all the turmoil over Jat reservation in Haryana, ‘Happening Haryana’ took off successfully. These are all signs of a healthy and vibrant federal economy. India continues to remain an attractive investment destination for foreign investors. FDI (equity) inflows in 2015 were around $40 billion—a 38% jump over 2014. However, not all states seem to be an equal partners in India’s growth story. A few states—Andhra Pradesh, Haryana, Delhi, Maharashtra, Tamil Nadu, Karnataka, Gujarat, Rajasthan and Telangana—have posted relatively stable and healthy economic growth over the years. The same states have accounted for over 60% of India’s economic growth.

Apple wants to invest in India, says RS Prasad
Source: Hindustan Times; April 5, 2016

Technology giant Apple and other global players are exploring opportunities to invest in India’s electronic segment, which has attracted investments of over Rs 1.2 lakh crore so far, Telecom Minister Ravi Shankar Prasad said today. “When I became minister, we had Rs 11,198 crore of investments in electronic manufacturing. I am happy to tell you, now it is Rs 1.2 lakh crore plus which has been invested in India or committed,” Prasad said at the annual session of industry body. A Bloomberg report quoted a source who claimed that the Indian government was pushing Apple’s application. He added that the company will resubmit the application as it was not in the right format without giving a timeline for the final approval. India is an important market to Apple since their growth in China is nearing stagnation.

“Most of the growth in India will come from new users coming into the Apple ecosystem, unlike in the West where growth is mainly from existing users upgrading,” Tarun Pathak, a senior analyst at Counterpoint Technology Market Research, was quoted as saying. “You can expect the stores to focus mostly on iPhones.”

Target for $3 bn. investments in electronics sector
Source: The Hindu; April 5, 2016

The State government has set an ambitious target of touching investments to the tune of $3 billion in the electronics sector by 2020. One of the other goals which was part of the ‘Electronic Policy 2016’ that was unveiled on Monday by the TRS government included creating employment opportunities for 1,60,000 people in the next four years in Telangana. The government also wants to enhance production from the existing $1 billion to $7.5 billion. The focus areas for the development of the electronic sector would be nurturing dedicated EMCs, encouraging electronic companies, promoting R&D and improving the ease of doing business. The government will also provide assistance in filing patents for companies headquartered in Hyderabad and reimburse 50 % of the cost with a limit of Rs 2 lakh. Women entrepreneurs will also get 10 % investment subsidy to a maximum of Rs 10 lakh for MSEs. Hyderabad currently has 250 companies in the electronics sector providing jobs to 50,000 professionals.

Marathwada likely to set up defence cluster: CMIA
Source: The Times of India; April 5, 2016

The region may soon become a major hub for the manufacture of defence products. A group of 10 industrial units of the Chamber of Marathwada Industries and Agriculture (CMIA) recently showcased Aurangabad's potential for the endeavour at the defence exhibition Defexpo India 2016 held at Goa between March 28 and 31. "CMIA took the lead in establishing a Defence Cluster at Aurangabad as the city has the required eco-system and has a huge potential for defence related manufacturing," said CMIA president Ashish Garde. He added, "CMIA has formed a group of 10 entrepreneurs, who are manufacturing products related to the defence sector and actively participated for the first time in the defence exhibition Defexpo India 2016 at Goa organised by the ministry of defence. This exhibition provides a platform to all the exhibitors to display their latest technologies and products and also an opportunity to explore the market and business potential for mutual benefits. Large number of official delegations all over the globe visits the exhibition and a number of international seminars and conferences are also conducted on the side-lines of the exhibition."

Considering the importance of the exhibition, CMIA had taken lead to create a pavilion for showcasing Aurangabads potential in manufacturing connected with defence, he said.

‘Make in India’ push: institutes gear up to train smartphone technicians
Source: The Hindu Business line; April 5, 2016

In July 2015, at a meeting of top executives of the Tata Institute of Social Sciences (TISS) and handset-maker Lava International, the talks centred on the dearth of smartphone engineers and technicians. Among the many divergent views, the consensus was that inexperienced technicians were doing more damage to the devices than fixing them. That’s when TISS decided to take things into its own hands. The result: a course – Bachelor of Vocational Education in Electronics Manufacturing Services – started in January this year. “There were not much courses, apart from a couple of engineering, polytechnic and ITI courses, those train people to repair smartphones. Lava officials said that they have huge requirements at its manufacturing units,” Amit Gupta, Vertical Anchor, Electronics, TISS School of Vocational Education. With 600 students enrolled, the three-year degree course will supply a workforce of supervisors, engineers and line operators to mobile manufacturing units.

Apart from the technical skills, these personnel would also be provided training in communication and general management also.

The course fee is ₹19,000-20,000 a year, with a 10+2 eligibility and for students aged between 18 and 20 years.

Trends 2016: IoT, the No. 1 driver
Source: VoicenData; April 5, 2016

IoT market is expected to mature and deliver more flexible solutions in contrast to many closed, proprietary first-generation offerings. The Indian IT industry has seen tremendous growth in the last couple of years. The industry has not only led to the economic transformation of the country but has altered the perception of India in the global economy. The IT sector continues to develop capabilities around traditional and emerging markets, verticals and customer segments, expand global delivery presence, and increase focus on high value services including product development. A recent report by Nasscom states that it is India’s largest and most diverse private sector employer, with a workforce of 3.5 million, and effecting over 10 million indirect jobs. With time, the sector is only expected to evolve further and among a few major trends that are going to define the future include the Internet of Things (IoT), cyber security and enterprises turning into software companies.

In the year 2016, the Internet of Things market is expected to mature and deliver more flexible solutions in contrast to many closed, proprietary first-generation offerings. According to a report by Cisco, the global IoT market is expected to grow from $655.8 billion to $1.7 trillion in 2020.

As companies continue to invest in the IoT, BT has also been pioneering the Internet of Things revolution and demonstrating how our Cloud of Clouds vision has become a reality for key customers around the globe.

CM on China visit to attract investments
Source: The Times of India; April 6, 2016

Chattisgarh chief Minister Raman Singh and a team of his officers have left for China on a week-long visit to explore the possibility of attracting Chinese investments mainly in non-core sectors, including electronic manufacturing and solar energy. "Our efforts is to attract investment and promote agriculture, food processing, manufacturing of defence equipment, IT, electronics, solar energy and engineering," Singh told reporters late on Sunday night before leaving for Delhi enroute to China. State chief secretary Vivek Dhand and other senior officials of state government are part of the delegation.

Chief minister's China tour will begin with visit to Zhengzhou where the delegation will attend China's 10th international investment and business fair besides visiting the economic zone there. Official sources said the visit was expected to open doors for substantial investments, particularly in electronic manufacturing and solar energy sectors.

NITI Aayog moots tax breaks for electronics manufacturing
Source: Economic Times; April 7, 2016

Seeking to capture world electronics markets with China vacating some space in the sector, the government's key body on policy formulation has suggested a series of reforms to kick-start electronics manufacturing under the Make In India initiative, including tax breaks for big investors and a special coastal zone for production.

In a new policy paper on electronics manufacturing, NITI Aayog has suggested that with a policy shift, India is poised to make a dent in the global market with high input costs in China but warns that this is 'perhaps India's last such opportunity'. It argues that the strategy should be export oriented with import substitution to expand production of electronic goods in the short run.

The strategy paper, a copy of which was accessed by ET, suggests that a mega coastal economic zone (CEZ) be set up under the Sagarmala project with international standard infrastructure and flexible land acquisition and labour laws to kick-start the sector. "A CEZ may be up to 200 to 250 km wide from the coastline, approximately equal distance in length and encompassing a modern deep dredge port. It would have minimal red tape and relatively flexible labour and land acquisitions laws," NITI Aayog has suggested.

LG starts making phones in India, plans country-specific models Fellowship Program
Source: Economic Times; April 7, 2016

LG Electronics has started manufacturing smartphones in India, and will for the first time, launch India-specific models in its quest to get back to the highgrowth trajectory in the country.

The South Korean parent company has already inked an agreement with GDN Enterprises, a part of New Delhi-based Optiemus Group, for manufacturing and has started trial production with two models. The lines have been imported from South Korea and will be expanded to include more models, three senior industry executives said.

Optiemus currently manufactures for HTC and Oppo and has inked a joint venture with Taiwan's leading contract manufacturer Wistron for setting up a new plant, which will eventually undertake production for these smartphone brands.

Local manufacturing will give a price edge to LG since the duties and taxes will come down by more than 10%, the executives said.

LG India managing director Ki Wan Kim said while the company has been evaluating the feasibility of making smartphones in India, there has been no concrete development yet. Optiemus Group managing director Ravinder Zutshi, too, declined to comment. But LG's Kim said the company will launch 6-7 models which are customised for India to revive the smartphone business. .

Phillips may invest in Indian healthcare technology startups; looks to join other global Fortune 500 companies
Source: Economic Times; April 7, 2016

Dutch consumer electronics and healthcare giant Philips is looking to join the ranks of other global Fortune 500 companies in leveraging India's rapidly evolving startup ecosystem and is initiating moves to set up a venture fund that will look to invest in Indian healthcare technology startups, a top executive told ET.

In an interview, Philips veteran Jeroen Tas, who currently heads the company's connected care and health informatics business, said that the plans to set up an India-focused venture fund were still at an early stage and would also depend on the success of similar funds that Philips has set up in Israel and Netherlands.

"We are also looking at setting up a venture fund — we already have venture funds in Israel, and we have already invested in a couple of small innovative companies. We have a venture fund in the Netherlands and we'll definitely look at doing something here — It'll entirely focus on healthcare technology setups," said Tas, who cofounded IT services firm Mphasis. Earlier this week, private equity fund Blackstone bought HP's 60% stake in Mphasis for up to $1.1billion.

Tas did not share specific details of the proposed new venture fund, but said it would be along similar lines of the fund the company set up in Israel. In July last year, Philips and Israel-based pharma company Teva jointly set up a $30-million venture fund to invest in medical devices and healthcare technology startups in Israel over eight years.

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