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  IESA WINWire August 06 - August 12, 2016 for Subscription click here  
11th Anniversary

Dr. V. K. Saraswat, Member NITI Aayog and former DG DRDO receives Dr. APJ Abdul Kalam Lifetime Achievement Award at DEFTRONICS AWARDS 2016
Source: ElectronicsMaker; August 6, 2016

India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and The National Association of Software and Services Companies (NASSCOM), today announced the winners of the DEFTRONICS AWARDS 2016 applauding the outstanding contribution in the Aerospace and Defence Electronics space. Envisioned this year, it was presented at the annual Aerospace, Defence & Internal security focused event-DEFTRONICS. The awards was presented by Chief Guest Sri. Priyank Kharge, Hon’ble Minister IT & BT & Tourism, Govt. of Karnataka

The DEFTRONICS AWARDS conceptualized in its initial edition, showcases the outstanding innovation and excellence in the aerospace and defence electronics field. It has applauded and recognised few of India’s best individual contributors and organizations that drive the industry forward; and provides them with a platform to showcase their achievements.

Introducing the awardees, K. Krishna Moorthy, Chairman, IESA & Managing Director, Rambus Chip Technologies (I) Pvt. Ltd. said,

“The DEFTRONICS AWARDS, is a recognition to the significant contributions that drive innovation and excellence in the critical areas of design, engineering, and manufacturing in A&D to make the India’s defence and aerospace ecosystem self-reliant and independent.”

Aerospace & Defence electronics market to reach $72 billion by 2029: Report
Source: Business Standard; August 6, 2016

The market opportunity for aerospace and defence (A&D) electronics in India is pegged to be at USD 70-72 billion in next 10-12 years, a report today said.

According to a joint report by IESA, Nasscom and Roland Berger, India is the seventh largest (A&D) market globally.

"India has needs to modernise its A&D capital equipment base by addressing obsolescence as well as build additional capability through new capital acquisition. This requirement is also supplemented by additional budgetary allocations of the Ministry of Home Affairs for paramilitaries and state police force requirements," the report said.

All of this results in India being substantially attractive as an A&D market, it added.

"The total market opportunity for A&D electronics for India to ranges from USD 70-72 billion in next 10-12 years," the report said.

Of this, almost USD 53-54 billion emanates from electronics spend as part of platforms, while another USD 17-18 billion of demand comes from projects that are traditionally called system-of-system projects like Indian Army's Project TCS, BMS etc, it added.

Huge opportunity in aerospace and defence electronics
Source: Business Standard; August 6, 2016

India’s aerospace and defence industry is expected to consume electronics worth $70-72 billion in the next decade, as the country rapidly modernises its military by embracing new technologies.

About $58 billion of the electronics opportunity comes from large systems that have electronic components built in as a solution, according to a report from Munich-based consultancy Roland Berger, in partnership with two bodies here, the National Association of Software & Services Companies (Nasscom) and India Electronics and Semiconductor Association (IESA).

Despite India’s information technology sector being globally recognised, the defence and aerospace industry has not been able to leverage this strength. India is now the largest importer of defence equipment and seventh largest defence market globally. While these are market predictions for the next 10-12 years there could be more ahead. In June, the government announced it would allow up to 100 per cent foreign direct investment in manufacturing for the military, through the government approval route.

The opportunity in electronics in aerospace and defence straddles both standalone systems and sub-systems for other systems. This is not only a huge business opportunity or industry but also a window to significantly scale up the technological capabilities in the electronics industry. “

Defence Electronics policy likely to be rolled out soon
Source: The Hindu Business line; August 6, 2016

The country’s first Defence Electronics and System Design Policy, which has been on the anvil since December 2014, is now a few steps away from being approved.

The draft recommendations for the Policy, which were put together by the India Electronics and Semiconductor Association (IESA) along with Nasscom and submitted to the Secretary, Defence Production last May, went through several iterations over the last 18 months, both at the government and industry level.

In addition, Roland Berger, a leading global strategy consulting firm with expertise in defence, was roped in 18 months ago — in an advisory capacity — to further fine tune the recommendations based on the feedback of the Defence Ministry and other industry stakeholders.

The recommendations, which are based on current aerospace, defence, internal security trends and happenings, will provide guidance to the formulation of the Defence Electronics policy by the Union Ministry.

“We submitted the final draft recommendations for the Policy on July 25 in a meeting chaired by the Defence Minister that lasted one hour and 15 minutes in New Delhi. It has taken three meetings with the government and 12-15 meetings with the defence PSUs and other industry stakeholders over the last 18 months to prepare the final draft recommendations,”

Krishna Moorthy, Chairman-IESA, told BusinessLine on the sidelines of Deftronics 2016, the annual flagship Aerospace & Defence event organised by IESA and Nasscom.

IESA to open office in Japan, Taiwan
Source: Deccan Herald; August 6, 2016

India Electronics and Semiconductor Association (IESA) on Friday said it will open offices in Japan and Taiwan.

In an interaction with DH, IESA President M N Vidyashankar said these two offices will further enhance business ecosystem for the electronics industry.

“We are aggressively perusing to make India the manufacturing hub of electronics and semiconductor items. We need the assistance from those who have already made the ecosystem. Japan and Taiwan definitely fit into this category,” Vidyashankar said.

According to Vidyashankar, the Indian electronics industry is providing a total revenue of $32.7 billion and the demand is rising almost 25% CAGR.

“India might require $400 billion electronic items by 2020. The Indian electronics consumer market has an annual turnover of Rs 500 billion and revenue contribution is $150 billion. There is going to be a huge gap in supply and demand,” he said.

The offices will become the nodal point for Indian companies that are looking for partnerships and joint ventures. “It will help Indian companies find the ideal partners with technology. Also, they will find manufacturing destination which expanded the ecosystem in the industry,” he said.

Make India defence production hub, says NITI Aayog member
Source: Deccan Herald; August 6, 2016

NITI Aayog member V K Saraswat on Thursday called upon stakeholders in the defence electronics sector to transform India to be the centre of the fourth wave in defence manufacturing.

Delivering the inaugural speech at the DEFTRONICS 2016, the flagship defence electronics event organised by the India Electronics and Semiconductor Association (IESA) in association with Nasscom, Saraswat said the defence manufacturing shift globally has seen the Wave 1 from the US to Japan.

“The Wave 2 was witnessed from Japan to Europe and the Wave 3 from South East Asia to China. I want the Wave 4 to be from China to India,” he added.

Saraswat also unveiled the Defence Electronics and System Design Policy Recommendations report brought out by the IESA and Nasscom along with global strategy consulting firm Roland Bergerand.

The report estimates that the aeronautics and defence electronics market for India is estimated to be in the range between $70 billion and $72 billion in the next 10-12 years. Almost $53 billion to $54 billion comes from electronics spend as a part of platforms.

“This indicates immense potential as there exists a significant gap between supply and demand. Though India is considered as a ‘soft power’ in the space, we are yet to witness a single Indian company that develops strong end-to-end aerospace and defence software solutions,” he said.

Here's how electronics and IT industry will benefit from GST
Source: Gizmodo; August 6, 2016

The Goods and Services Tax (GST) bill has been finally released. While there are a lot of fine points in this bill that need to be understand, industries in India are particularly excited about this. Electronics and IT industry is excited to have comprehensive tax structure in place. The industry experts think that such a structure will give a boost to the economy in general, apart from bringing in a lot of other benefits. Let's look at the ways in which electronics and IT industries will reap benefits of GST: Desired push for 'Make in India': Narendra Modi led government is making all the right moves for the success of 'Make in India'.

Implementation of GST is a step ahead in that direction. Manish Sharma, President, Consumer Electronics and Appliances Manufacturers Association (CEAMA), highlighted how GST will push manufacturing.

He said, "Removal of one per cent tax on interstate transactions is surely good news. It will end state rules for companies who have been manufacturing units in India. It will also help create a national market for goods to be supplied. Logistics cost will also be reduced thereafter. The amendments will provide necessary boost to these local manufacturing institutions which will increase the enterprise productivity and thus, create employments."

Lockheed Martin will shift F-16 fighter jet manufacturing unit to India if it gets assured orders
Source: International Business Times; August 6, 2016

American aerospace and weapons manufacturer Lockheed Martin has said that it would shift production of F-16s to India, under the Make in India scheme, from its Texas unit if the Indian Air Force (IAF) gives it assured orders. The F-16 jet is a preferred aircraft not just by India but also Pakistan, and since the company would also be looking at exporting the aircraft to other countries, the decision would stay with India, said Lockheed's spokesperson. The Lockheed Martin's national executive Abhay Paranjape said that the company would consider switching its manufacturing unit to India only if the IAF gives it assured orders.

"We have had multiple discussions with the government and the industry. There has been a level of interest ...we have not been told to go away," he said.

The manufacturing unit would be a "huge boost to the market and a further diversification of the Indian economy," aerospace expert Saj Ahmad, who is chief analyst at StrategicAero Research, told International Business Times, India.

"Given the constraints on US defence spending through sequestration, there's a good chance Lockheed Martin could opt to house production overseas - although this will be driven by the size and scope of any orders alongside any other governmental incentives such as tax breaks," said Ahmad.

Four more STPIs to come up in Odisha
Source: Pramey news; August 7, 2016

Four more software technology parks of India (STPls) would be set up in Odisha in the next one year. At present there four STPIs in the State.

“There has been a rapid growth of IT Industries at Bhubaneswar in last 10 years. All the major IT players have already established their development centres in Bhubaneswar and are in the process of expansion. At present, there are four STPls in Odisha and four more are coming up in the next one year.

There has been a rapid growth of IT Industries at Bhubaneswar in last 10 years,” said Chief Minister Naveen Patnaik on Saturday while attending the Digital India Conclave organised by the India Today Group.

Maintaining that the State Government has brought out a new ICT Policy and Industrial Policy Resolution-2015 where Government strives to make Odisha the preferred destination for IT/ITES/ESDM Companies, Patnaik said the State Government is setting up a Green Field Electronics Manufacturing Cluster within Infovalley. Odisha is the first State to sign an MOU with TiE Silicon Valley, USA to attract foreign investment in IT and ESDM Sector.

“Our recently announced special package of incentives for ESDM sector shall definitely be a catalyst in this endeavour.

India ranks 6th among world’s top 10 largest manufacturing countries
Source: Indiainfoline; August 8, 2016

As indicated in the annual publication ‘International Yearbook of Industrial Statistics’ of United Nations Industrial Development Organization (UNIDO), the growth rate of Manufacturing Value Added (MVA) of India was 5.5 % in 2014 and 7.6 % in 2015 while that of industrialized economies was only 1.0 % in 2014 and 1.5 % in 2015. Also, India is ranked at 6th position among the world’s 10 largest manufacturing countries during 2015 only behind China, United States of America, Japan, Germany and Republic of Korea. India was ranked at 9th position during 2014. The initiatives taken by the Government to promote manufacturing in the country as a part of Make in India initiative, promoting ease of doing business, investment in infrastructure and other sectors are aimed at generating output and employment. This information was given by the Commerce and Industry Minister Nirmala Sitharaman in a written reply in Lok Sabha today.

Best Embedded Product Design and Services Company in A & D – INDIA
Source: Press Release- Moschip; August 8, 2016

MOSCHIP SEMICONDUCTOR TECHNOLOGY LTD, a Premier Semiconductor Desgin and Service Company with extensive design experience in Aerospace, Defense, Consumer Electronics, Audio and Video, Networking and telecommunications, Mobile Electronics, Security and Software Development received the Prestigious Award as the “Best Product Design Company in A & D” in the category of “Best Embedded Product Design and Services Company in A & D – INDIA”.

The Award is declared by the Indian Electronics and Semicondctor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and The National Association of Software and Services Companies (NASSCOM) in the DEFTRONICS AWARDS 2016.

The Award is to applaud the outstanding contribution in the Aerospace and Defence Electronics space which is presented at the Annual Aerospace, Defence & Internal Security focused event – DEFTRONICS.

Implementation of GST will boost Indian manufacturing industry
Source: Computerworld; August 8, 2016

As the India’s biggest tax reform, GST bill, clears its way with an impressive majority in the Rajya Sabha, the Indian manufacturing industry has responded positively on the move where several companies and firms agreed that the bill passage would definitely ease the way of doing business in India. Here is what some of the CIOs and IT leaders of manufacturing companies in the country think about the GST bill. Venkat Ramana, head IT at Larsen and Toubro India, believes that GST is a very welcoming and a positive move for the entire manufacturing industry.

He said, “This reform will be very successful in improving trade and manufacturing in our country. We will be having a single tax system where we will be paying one tax to the central government instead of paying multiple taxes such as excise duty, value added taxes, central sales taxes, entry taxes, etc.”

He further added that the GST bill will in turn make the compliance easy which will generate more income for the companies. “Instead of dealing with so many departments, company owners can now have only one department to deal with, which will lead to avoidance of harassment and confusion,” said Ramana.

First plane to be made in India may fly out of Maharashtra
Source: The Economic Times; August 9, 2016

The Maharashtra government is set to take concrete steps in the next 15 days to roll out what state officials say could well become the 'torch bearer' of the 'Make in India' initiative -the first 20-seater commercial passenger plane built in India. The state will allot 46-acres of land in Palghar to Amol Yadav (40), a Jet Airways pilot, for building 20-seater commercial planes. No company in India has manufactured such an aircraft in India yet. Yadav had created quite a stir during the Make in India week held in Mumbai in February this year with his six-seater passenger plane TAC-003, which he built along with his family and friends on the terrace of his flat in Charkop, Mumbai.

Maharashtra Chief Minister Devendra Fadnavis, when contacted, said that "his government will support Yadav" for the venture. Government officials said that Fadnavis has told them "to make sure that all necessary support is provided within the legal framework".

Yadav told ET that the price of his 20-seater planes will be significantly less than similar aircraft imported from abroad, and can "revolutionize air travel" in the country.

Intex, Tata Institute to offer course in mobile manufacturing
Source: The Hindu Business line; August 9, 2016

Students looking for a career in mobile manufacturing will now be able to do scan now apply for a free bachelors course developed by Tata Institute of Social Science and sponsored by Intex Technologies. In a bid to expand its manufacturing capabilities in the country, mobile phone maker Intex Technologies is launching an apprenticeship programme starting August 22 that will enrol 200 high school students for a three-year programme in mobile manufacturing. By next year, there will be another 600 students enrolled into the next batch.

“Local mobile manufacturing is currently limited to mostly assembly of parts. We want to increase our value addition in the process by developing more components in India. For that we need a lot of skilled professionals who are currently not available. This apprenticeship programme will help in getting trained manpower, which can work in the high-precision atmosphere,”

Rajeev Jain, CFO at Intex Technologies, told BusinessLine.

Intex, which is planning an IPO of over ?700 crore by this year-end, is taking several such measures to improve its production quality to compete with larger peers such as Micromax and Samsung in the Indian market.

‘IoT project will be ready in a month’
Source: The Hindu; August 9, 2016

Chief Minister N. Chandrababu Naidu on Monday said that the Internet of Things (IoT) sensor technology would be operational all over the State soon. It was intended to bring about revolutionary changes to make the administration function with more responsibility and efficacy.

“In spite of the hassles in creating the Rs.5,000-crore fibre network project because of the lukewarm gesture from the Centre, I am committed to implementing the project and it is set for completion in one month,” Mr. Naidu said.

Interacting with students of the Kuppam Engineering College in Kuppam, the Chief Minister, who arrived on a two-day visit, said he relied more on technology-based development to compete with world standards in all spheres of activity.

“You [students] should build your career with innovative ideas and contribute your might to society. Steps would be taken to set up centres for innovation at the school and college levels, besides appointing innovation officers for better monitoring of grounding of technology,” Mr. Naidu said.

Mr. Naidu said the havoc caused by cyclone Hudhud in Visakhapatnam in 2014 was overcome quickly by using technology.

Towards indigenous defence ecosystem
Source: Deccan Herald; August 10, 2016

India has the third largest army, the fourth largest air force and the seventh largest navy in the world. It is among the top 10 countries in terms of military expenditure and world’s largest arms importer.

It allocates about 2% of its GDP towards defence spending, of which 40% is allocated to capital acquisitions and only about 30% of equipment is manufactured domestically, mainly by the public sector undertakings.

Even when defence products are manufactured domestically, there is a large import component which is an attractive pro-position for its defence partners.

India has established long term partnerships with many countries to provide arms, vessels, fighter jets etc, that help counter the threats present in the country. Import of defence technologies and products costs billions of dollars every year. Hence, it’s extremely important for India to create its own ecosystem rather than depending on the international partners for its defence needs.

With ‘Make in India’ in the defence segment creating enough buzz, this is a call that the country can least afford to ignore. But we need to have the right vision, long term approach and enough patience to transform the country into a defence powerhouse. We are among the top spenders when it comes to defence, majority of which is dominated by recruitment and procurement.

Compiled by IESA Research

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