Our top priority is
accelerating design-led electronics manufacturing: IESA chief
Source: The Hindu Business
Line; April 30, 2016
The India Electronics and Semiconductor Association (IESA) announced
its new Executive Council for 2016-17 on Friday. Business Line caught
up with the new Chairman of IESA, K Krishnamoorthy, who is Managing
Director, Rambus Chip Technologies (I) Pvt Ltd, to find out what it
would take for India to become one of the top electronics
manufacturing destinations in the world; when the country’s first
Defence Electronics Policy will be announced and his immediate
priorities for the Indian ESDM (Electronic System Design &
Manufacturing) industry. The top priority area is to accelerate
design-led electronics manufacturing in the country. This is because
we are very import dependent with over 80 per cent of components such
as microprocessors, microcontrollers, display devices and over 60 per
cent of products such as high-end TVs and high-end phones still being
imported. All of manufacturing contributes to 17 per cent of the
country’s GDP, of which approximately 2 per cent is being contributed
by ESDM. The government is targeting to increase overall contribution
of manufacturing to 25 per cent of GDP by 2020. We want to step up
ESDM to be able to contribute significantly to that target. The demand
for electronics is increasing every year across market segments like
defence and aerospace, consumer electronics, automotive, healthcare,
education, telecom etc; with domestic demand for electronics estimated
to grow from $100 billion in 2015-16 to $400 billion by early 2020s.
Executive Council for 2016-17
Source: The Hindu Business
Line; April 30, 2016
India Electronics and Semiconductor Association (IESA), the premier
industry body representing the Indian Electronic System Design &
Manufacturing (ESDM) industry today announced its new Executive
Council for the year 2016-17. Mr K. Krishna Moorthy, Corporate VP and
Managing Director, Rambus Chip Technologies (I) Pvt Ltd who was
earlier the Vice Chairman for 2015-16, has taken over the role of
Chairman for 2016-17. Mr. Ashwini K Aggarwal Director - Govt. Affairs,
Applied Materials India Pvt. Ltd. would be the new Vice Chairman of
IESA and Mr Anilkumar Muniswamy, Director, SLN Technologies Pvt. Ltd
will serve as the new Treasurer. Krishna, as he is known in industry
circles, is an accomplished Electronics Industry professional with
more than 35 years of experience in the field of electronics, covering
a wide spectrum of functions from Silicon design, System design,
System engineering, and high performance IP design in deep sub micro
processes and engineering management. He is credited to have designed
the first ASIC in India in 1987 that went into volume production and
used in many Secure Defence Communication systems. He works with
premier engineering schools in India to foster Industry/Academia
relationships and played a key role in setting up the Advanced VLSI
lab in IIT Kharagpur 10 years ago which today produces many high
quality engineers with IC design experience.
Intel to help Odisha
pocket electronics investments
Source: Business Standard;
April 30, 2016
USA-based semiconductor chip maker Intel Corporation is keen to enter
an alliance with the Odisha government to bring in investments to the
state in the electronic system design and manufacturing (ESDM) sector.
“Intel, being a chip manufacturer, can hand hold the product
manufacturers in using their technology and in selecting their
preferred destinations to invest. There is a possibility that Intel
can play a pivotal role in bringing investments in the electronics
sector. In that case, Intel can play a persuasive role to bring in
prospective investors to the state,” a government official said.
Debjani Ghosh, vice-president (sales & marketing) and managing
director (South Asia), Intel Corporation had a meeting last Wednesday
with state information technology (IT) minister Pranab Prakash Das and
top state IT officials.
“Short and productive visit to Bhubaneswar. Pleasure to meet minister
IT Pranab Prakash Das. Great to see the energy and strong will to
drive the change,” Ghosh tweeted.
Commenting on the meeting, Das said, “We had a fruitful dialogue with
Intel on technology collaboration and hope for positive outcomes.”
Healthcare IT now a $1
Source: The Times of India; April 30, 2016
The Indian healthcare IT market is valued at $1 billion (about Rs
6,650 crore) and is likely to grow about 1.5 times by 2020, according
to a report by IT industry body Nasscom. The report said within the
market, the healthcare software segment generated revenues of $96.8
million in 2014 and is likely to grow at a compounded annual growth
rate (CAGR) of 11% over the next five years. Comparatively, the
worldwide health tech market is estimated to grow at a CAGR of 6% to
$25 billion by 2020 from $17.36 billion in 2014. In India, healthcare
software is a small part of the total healthcare IT segment,
comprising only about 9%. "There are about 150 companies operating in
this space in India and they are creating products and solutions for a
global customer and finding acceptance," Sangeeta Gupta, senior
vice-president -events, research and communication at Nasscom, told
There has been a sharp increase in India in the number of health tech
startups - about 60% of the total number of companies -- in the past
few years and these have attracted funding worth over $100 million
since 2014. Gupta said wearables and well-being related solutions were
seeing a lot of consumer interest and were doing well within the
broader spectrum of health tech products.
ISRO: A world class
Make in India example
Source: Mint; May 2, 2016
Last week, India successfully launched a satellite which finally
established the country’s own satellite navigation system—only four
others, the US, Russia, China and the European Union, possess this
capability in the world—or more familiarly, a global positioning
system (GPS) of its own. And once again it did so on a shoe-string
budget. Not only will the Indian Regional Navigation Satellite System
(IRNSS), made up of seven satellites, strengthen the country
strategically, it will also be useful in disaster management. And,
given that the footprint of the satellite navigation system will
extend 1,500 km from its borders (covering all of Asia and extending
to the fringes of Australia and Africa), India can share some of the
capabilities with other developing countries in its neighbourhood.
This is a superb achievement for the Indian Space Research
Organisation (Isro). The institution and its innovations are clearly
the best Make in India products and more incredible is the fact that
it is the most cost effective space programme in the world. In another
three years it will celebrate its golden jubilee-given its amazing
track record, this will be an anniversary to look forward to.
Set up in 1969, this organization has emerged as a unicorn (not in the
way we refer to start-ups). It has had to face the same constraints as
other institutions as well as the fact that it functioned under
overall government control. Yet it has managed to break the stereotype
of a public sector company (including forging a string of commercial
agreements with private sector companies) and emerged as an
institution which is world class.
Defence ministry wants
the private industry to take active part in defence equipment
Source: Business Insider;
May 2, 2016
In a first of its kind project, the defence ministry of India has
listed out 23 major projects from all the three armed forces, from
Unmanned Aerial Vehicle (UAVs), glide bombs to underwater systems and
tank engines. This is being done so that Indian companies can be
earmarked under the Make in India category. The list has recently been
drawn up by the ministry in consultation with the three armed forces,
and shares details ranging from the requirements in the coming years
to the acquisition schedule, and all these things were kept secret
earlier. They have found their way out because of defence minister
Manohar Parrikar's upped outreach, who is also in constant touch with
industry bodies and major companies indulged in military
manufacturing. The projects that have been listed out include 125mm
smooth bore gun barrel for battle tanks, targets for torpedo firing,
advance pilot-less target aircraft, mine layers and diesel engines for
naval boats. Other than listing out technical specifications of the
equipment, the defence ministry has also specified their quantities so
that it is easier for the industry to plan how much they should invest
in the technology.
HAL to manufacture
Russian military helicopters
Source: The Hindu Business line; May 2, 2016
Aeronautics Ltd is set to include the participation of its 4,000-plus
vendors across the country, to help execute the contract to
manufacture the Russian Kamov military helicopters. More Indian
companies are set to join the fray and participate in the contract,
estimated to cost over $1 billion. Russia and India had agreed to
jointly produce about 200 Ka-226T helicopters to replace the Cheetah
and Chetak Choppers under the Centre’s ‘Make in India’ initiative. An
agreement to this effect was signed during Prime Minister Narendra
Modi’s visit to Moscow in December 2015. Sources said sixty aircraft
will be supplied to be assembled in India, while the remaining 140 are
planned to be manufactured at Indian production facilities. Sources
added that though it is an inter-government deal drawn on the same
lines as the earlier Russian Sukhoi-30-MKI fighter jets, Hindustan
Aeronautics Limited (HAL) was chosen to manufacture the helicopters
for the Indian armed forces given its previous experience in making
A senior HAL official, speaking to BusinessLine on the condition of
anonymity, said a decision had not yet been taken on the location to
manufacture the copters. “Discussions are on to manufacture the
Ka-226T in Nashik, Maharashtra, though Bengaluru happens to be the
main ground for manufacturing helicopters. Bengaluru has the
wherewithal and the necessary manpower. However, all Russian
production is done out of Nashik,” said the official.
City to soon get
testing centre for electronic items
Source: The Hindu; May 3,
A world-class testing centre for electronic components and products
will be coming up in Mysuru soon.
It will be a Common Facility Centre (CFC) coming up on 1 acre of land
at Hebbal in Mysuru at a cost of Rs. 29.53 crore.
Being established under the Electronics Manufacturing Cluster (EMC)
scheme of the Department of Electronics and Information Technology (DeitY),
Union Ministry of Communications and IT, New Delhi, the testing centre
will receive Rs. 21.31 crore as the Central government’s grant-in aid,
Rs. 3.49 crore grant from the State government, besides a contribution
of Rs. 4.73 crore from the cluster of electronics companies in Mysuru.
Confederation of Indian Industries (CII), Mysuru, representatives said
that the Centre had sanctioned the centre for Mysuru in response to an
application under the EMC scheme by the Electronics System Design and
Manufacturing (ESDM) industries in Mysuru.
Speaking on behalf of the ESDM cluster in Mysuru, Vishwa Prasad Alva,
managing director of Skanray told The Hindu that his company had
offered land on its premises for setting up the testing facility.
“The facility will be one-of-a-kind in India. It is a comprehensive
testing facility for a range of electronics products,” he said.
Make in India for
mobiles: Will GST dial trouble for handset makers?
Source: The Financial
Express; May 3, 2016
Foreign mobile handset makers that have set up assembling units — and lately
manufacturing facilities — in India relying on various indirect tax
concessions from the central and state governments fear that these
incentives could go away once the goods and services tax (GST) regime is
introduced. Unless policymakers give an assurance that the existing
incentives of low excise duty and concessional state VAT rates would stay in
the GST regime, many of these players would be forced to review their
investment plans, sources in some of these firms told FE — in last year’s
Budget, the finance minister had imposed a 12.5% countervailing duty (CVD)
on mobile phones that were imported compared with a 1% excise duty for those
made in India. Since GST is a destination-based tax on consumption, it will
not be possible for states to continue to give the VAT exemptions they have
given today. And since the GST will subsume all taxes, the excise/CVD
advantage given by the Centre to local manufacturers will also be difficult
to retain — though the Centre can keep the GST rate lower for mobile phones
as compared to the standard rate, this will apply to both imports as well as
LeEco plans to make
mobile phones in India
Source: Deccan Herald; May
Chinese electronics firm LeEco is planning to manufacture handsets in the
country. The decision follows the phenomenal response to its sale on
eCommerce website Flipkart.
“We plan to have local manufacturing. The plans for local manufacturing are
at a drawing board stage currently, but we plan to start building phones
from a local unit in the second half of calendar year 2016 (CY2016),” LeEco
India Smart Electronics Business Chief Operating Officer Atul Jain told
We are evaluating both options — assembly as well as full manufacturing —
and hope to take a call soon in this regard, Jain said, adding that the
company will take all approvals (if required) from the government before
starting the unit.
LeEco, which has sold four lakh units in India so far exclusively through
the online route, is planning to soon sell its handsets through the offline
“We have already applied to the government for setting up our own stores and
hopefully plan to start selling in two months in our own stores as well as
multi-brand outlets,” Jain said.
The plan is to have 6-10 own stores by the end of this CY and to have 500
franchise stores as soon as possible to sell our handsets, Jain added.
PC makers demand
smartphone duty model to make in India
Source: Business Standard;
May 3, 2016
Three out of four personal computers sold in India are imported. PC
makers now want the government to impose higher duties on imports and
encourage local manufacturing, by replicating the successful model it
has adopted in bringing global smartphone companies to make in India.
Nearly half of all smartphones sold in the country are now
manufactured locally, however, the same cannot be said for PCs.
India's PC market grew to 11.21 million units in the year that ended
March 31, but less than one-fourth of them or 2.68 million units are
produced locally. "We want a duty differential scheme which will
create a difference in cost between importing and manufacturing. The
moment you do that and manufacturing here becomes cheaper, all the
players are going to jump on it," said Anwar Shirpurwala, Executive
Director of hardware lobby group Manufacturers' Association of
Information Technology (MAIT).
India has an ambitious target to boost its electronics manufacturing
sector to $400 billion by 2020, but at the current run rate, MAIT
expects that number to reach just $104 billion. The lobby group says
that if those figures are to be achieved, the country needs to look
beyond local manufacturing of smartphones.
India Says No to the
Import of Used iPhones
Source: The Huffington
Post; May 4, 2016
India has rejected a plan by Apple Inc to import used iPhones,
government officials said on Wednesday, a blow to the U.S. tech giant
that has been seeking to revive waning sales of its flagship
smartphones. Apple sells what it calls refurbished iPhones at a
discount in some countries, including the United States. Extending
this practice to India would have likely helped it increase its share
in one of the world's fastest growing smartphone markets against
competitors with much cheaper offerings. But India, which is pushing a
'Make in India' initiative to boost the competitiveness of its
manufacturing sector, rejected the proposal citing rules against
importing used electronics. "India does not encourage dumping or
recycling of hazardous materials," NN Kaul, a spokesman for the
telecom ministry said. Apple's proposal was opposed by domestic phone
makers who claim selling refurbished iPhones - devices that have been
returned by buyers or repaired to factory condition after damage -
would breach India's anti-dumping rules. The Consumer Electronics and
Appliances Manufacturers Association had written to India's telecom
ministry to stall the move.
An Apple spokeswoman in Singapore did not immediately respond to an
email seeking comment.
Astra Microwave expects its JVs to take off next year
Source: Mint; May 4, 2016
Astra Microwave Products Ltd, a maker of subsystems used in the
defence and telecommunication sectors, is expecting a pair of joint
ventures to take off in the next financial year, which will help it
earn an additional Rs.1,800 crore in revenue over five years.
One of the ventures is with Israel’s Rafael Advanced Defense Systems
Ltd for joint production and supply of tactical radio communication,
electronic warfare and signal intelligence systems. This venture is
awaiting clearance by the ministry of defence.
The second is with Canada’s Unique Broadband Systems Ltd for ultra
high frequency broadcasting, satellite uplinking and medical imaging
“The Canadian JV business will start from FY18 onwards and we expect
to have at least Rs.300 crore of turnover from this JV in the next
five years. Similarly, Rafael JV revenues will start from next fiscal
year, if we complete all the formalities this year. So in the next
five years, we have the prospects for about Rs.1,500 crore,” M.V.
Reddy, director of operations & business development, Astra Microwave,
said in a conference call on 30 April.
The company has projected sales of Rs.450 crore this year (FY17)
against Rs.500 crore it had earlier hoped to achieve on the back of
Dedicated electronics parks to boost industry
Source: Times of India; May 5, 2016
Dedicated electronics parks will soon come up around the city, giving
a boost to the electronics industry.
Officials of the state directorate of industries said the decision is
part of the new Electronics Policy announced by the state government
during the Make in India Week, which was held in Mumbai in February.
"Under the new policy, government will give some incentives to the
electronic system design and manufacturing sector. A 100 hectare land
area has been identified at Baur near Pune to set up an electronics
park. In Talegaon, out of the 1,000 hectare land identified for
development, some part has been set aside for an electronics park.
This will be in Talegaon phase 2. The other area identified for an
electronics park is at Khalapur in Raigad district," said SS Survase,
joint director of industries.
However, he did not specify the exact location of the electronics
parks at Talegaon and Khalapur.
Survase said despite being a manufacturing hub, Pune and the
surrounding areas do not have that many electronics units.
The dedicated parks will act as a support system for the electronics
"These parks will have integrated facilities for research and
development, manufacturing and testing support to the industry. The
electronics industry is different in the sense that it is not
polluting and needs highly skilled people," Survase added.
India market: Lenovo and Apple seeing fast growth among top-10
smartphone vendors, says Canalys
Source: Digitimes; May 5, 2016
India's smartphone market grew 12% on year to 24.4 million units in
the first quarter of 2016, according to Canalys. Among the top-10
vendors during the quarter, Lenovo grew the most with shipments up
63%, while Apple saw its shipments climb 56% making it the second
Thanks to its value-for-money handsets and offline channel strategy,
fourth-ranked Lenovo saw its shipments surge 63% from a year earlier
in the first quarter of 2016, Canalys indicated. Meanwhile, though in
eighth place, Apple continued to climb in India with shipments rising
56% on year during the same period.
Samsung Electronics continued to lead the India smartphone market in
the first quarter of 2016, followed by Micromax, Intex, Lenovo and
Lava, Canalys said.
"Over the past 18 months, India's smartphone market has been rocked by
dramatic changes. The rise of online channels, the arrival of new
international vendors (particularly from China), the move to LTE and
the desire for higher-quality devices have all had a big impact.
Indian companies have struggled as incoming vendors have been quicker
to address these trends," said Ishan Dutt, research analyst at Canalys.
"Micromax, in particular, has been through tough times, with key
executives leaving. Now the company is aiming to revamp its strategy
to incorporate an ecosystem of services around payments and content."
Micromax's share of the India smartphone market fell by a couple of
percentage points to 16.7% in the first quarter of 2016, Canalys
Apple coming here only to make new products: Prasad
Source: Hindu Business Line; May 6, 2016
“Apple is coming to India, only to manufacture new products, as part
of the electronic manufacturing programmes,” Telecom Minister Ravi
Shankar Prasad said clearing the air on the issues of refurbished
Apple smartphones coming to India.
Prasad told BusinessLine that recently senior officials of Foxconn
have met him and they have shared that Apple has plans to make only
new products from India.
The Minister said there has been lot of issues on the reports of Apple
going to sell refurbished smartphones in India and therefore, he
wanted to clear things, on the subject.
“Dr Louis Woo, Head (Channel Business Group) Foxccon, had met me
recently and I have requested him to consider exploring manufacturing
in India and the company will be given all help. Woo showed keen
interest and assured of positively exploring India while acknowledging
the great potential of the Indian market. He never made any mention of
having a second hand facility of Apple phones in India,” he said.
Prasad said that he emphasised upon Woo to have a manufacturing base
here as well for Apple’s new and existing products, as the company
already has a significant market share in India.
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