Please click here if you are not able to view this emailer
  IESA WINWire Dec 10 - Dec 16, 2016 for Subscription click here  
11th Anniversary

Indian manufacturing sector may improve in Oct-Dec: FICCI
Source: The Economic Times; December 11, 2016

India's manufacturing sector may show growth improvement in the October-December quarter with a slightly better outlook for production, driven by better export prospects, according to a report.

The proportion of respondents positive about growth rose to 63 per cent from 55 per cent in July-September, revealed Ficci's latest quarterly survey on manufacturing.

Those expecting a negative figure seem to be reducing, at just 11 per cent.

However, manufacturing growth in India got dampened in November as the demonetisation move weighed on new work flows, buying activity and production while subdued inflationary pressure may prompt RBI to loosen policy, a monthly survey released earlier showed.

The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- fell to 52.3, down from October's 22-month high of 54.4.

According to the Ficci survey, outlook on domestic demand remains uncertain as of now.

"The slight improvement in the outlook for manufacturing production in the third quarter of the current financial year was attributable primarily to better outlook for exports compared to previous quarters," the survey pointed out.

The proportion of respondents expecting higher exports in the third quarter of 2016-17 went up to 46 per cent as against 41 per cent in the previous quarter. Besides, over 43 per cent reported higher capacity utilisation in the last quarter.

US pitches hard for building fighter jets under Make-in-India
Source: The Economic Times; December 11, 2016

The US has made a strong case for producing an American fighter jet under the Make in India initiative, a proposal that was discussed at length even during US Defence Secretary Ashton Carter’s farewell visit to New Delhi this week.

The mega project — India is looking for a partner to produce over 200 new fighter jets to replace its ageing MiG fleet — has the potential of creating jobs both in India as well as the US if done correctly, was the message conveyed from Washington.

India and the US are also looking to roll out a ‘signature’ joint development military project under the Defence Technology Transfer Initiative (DTTI) by the end of this year, though details are being kept under wraps as advanced negotiations are on.

While there have been questions on the future of the US offer to produce a combat plane in India after President elect Donald Trump’s stated position to keep manufacturing units within the country, the view in Washington is that the economics of the deal could produce new job opportunities in both nations.

The two sides also discussed at length India’s designation as a major defence partner of the US, with the message being given that New Delhi would have easier access to technology and lesser obstacles on licensing issues with the new status.

We have sought R&D incentives for IT sector: R Chandrashekhar, Nasscom
Source: The Economic Times; December 11, 2016

We have emphasised the fact that the industry faces multiple challenges globally today because of the rise of protectionist forces and anti-globalisation forces.

Apart from that, technology trends also present challenges which the industry is working to cope with but the importance of developing technologies and research and development is very high in the current situation.

One of the suggestions is that R&D incentives available in the Income Tax Act should be made applicable even for IT. Today they are available only for non IT sectors. So, that is one key area.

The second is that given all these challenges, the ease of doing business is critical and there are several challenges on that front, including things like the place of effective management (POEM) which were brought into effect under the law from 1st April 2015 but the guidelines had not been issued. We are told that they are likely to be issued anytime soon. And our concerns with regard to retrospective effect of these guidelines have been highlighted. We were assured by the revenue secretary that there would not be any difficulty caused by the retrospective application and what we have flagged is if that is the case then it is okay, but in case there are difficulties then we would certainly bring it back to the attention of the government.

Panasonic plans local mfg of air purifiers from next year
Source: The Economic Times; December 12, 2016

Home appliances and consumer electronics company Panasonic India plans to manufacture air purifiers in the country by next year, a top company official has said.

"We are still importing air purifiers, but I am seriously considering (manufacturing) because this market is growing quite rapidly. So, we are considering to look at manufacturing them also in India, possibly from next year," Panasonic India and South Asia President and Chief Executive Officer Manish Sharma told PTI.

The company imports its range of air purifiers from its Hong Kong-based unit.

The Japanese firm has 15 manufacturing units in India and recently announced investment of Rs 115 crore in a factory in Haryana to manufacture refrigerators.

Last fiscal, the company sold 5,000 units of air purifiers and this fiscal, it is aiming to sell around 20,000 units.

"We have at least 20 per cent of market share in urban markets," he said, adding that the air purifiers market is estimated to be 1 lakh units in the country.

Panasonic, which is currently the number three player in the air purifier category, is expecting 10 times growth in next five years with a revenue of Rs 150 crore by selling over one lakh units by FY 2020-21.

The company's total investment in India in the last few years has been over Rs 300 crore.

Need to sustain momentum in electronics manufacturing: IT Secy
Source: Money Control; December 12, 2016

Amid concerns over reduced tax benefits to mobile phone makers under GST, IT Secretary Aruna Sundararajan today said there is a need to build upon the momentum in electronics manufacturing in the country. "India has missed some of the earlier revolutions, electronics manufacturing is an opportune moment for us. The kind of early momentum that we have already, make sure that is sustained, accelerated and built upon," Sundararajan said after releasing a joint study by Broadband India Forum (BIF) and EY. "India is a large market and I think that growth of electronics consumption in country is going to grow exponentially, specially with the kind of thrust that we are placing on whole Digital India set of initiatives. But demand is still small, that is what global majors are saying," she said. As per the study on 'Incentivising Domestic Handset Manufacturing Under GST', adoption of smartphone in India is expected to reach 688 million by 2020 as compared to 238 million in 2015. "The broadband device today is a smartphone. We need to increase smartphone penetration as India has today less than 30 percent smartphone penetration. This can only happen through local manufacturing and by further increase of local value addition," BIF President T V Ramachandran said.

Electronic plants cant seek subsidy in new MSIPS if relocate
Source: India Today; December 12, 2016

Electronic manufacturing firms seeking benefits under the new Modified Special Incentives Package Scheme (MSIPS) will have to give commitment that they will continue their business in India for at least three years after availing subsidy.

The benefits under the scheme, which is expected to be finalised in 2-3 weeks, will also not be applicable in case there is relocation of manufacturing plant to some other parts of the country.

"In the new MSIPS, the government is looking for firm commitments from companies interested in getting incentives. They will have to guarantee the government that they will stay in business in India for three years of availing benefits," according to an official source.

The proposed changes in the scheme, which was started in July 2012 to boost electronics manufacturing growth in the country, also include providing subsidy for investments in capital expenditure -- 20 per cent for investments in SEZs and 25 per cent in non-SEZs.

It also provides for reimbursement of countervailing duty (CVD)/excise for capital equipment for the non-SEZ units.

For high technology and high capital investment units, like fabs, reimbursement of central taxes and duties under MSIPS is also provided.

Under the proposed changes, relocation of manufacturing unit from other parts of India will not be eligible for new benefits, the source said.

One Of The Biggest Make-In-India Defence Projects Put On The Fast-Track By Govt
Source: India Times; December 12, 2016

The Union defence ministry is finally fast-tracking the long-pending mega 'Make in India' project to produce at least 2,610 future infantry combat vehicles (FICVs) for the Army at an estimated cost of about Rs 60,000 crore.

MoD sources said two of the five private contenders in the fray, apart from the Ordnance Factory Board (OFB), "will soon be selected" to design and build prototypes for the FICV

The government will fund 80% of the development cost, which could be around Rs 3,000-4,000 crore.

"The best prototype will then be selected for mass production. The ministry's integrated project management team (IPMT) is in the final stage of evaluating the EoI (expression of interest) responses submitted by the OFB and five private vendors," said a source. The private contenders are L&T, Mahindra, Pipavav Defence & Offshore Engineering and two consortiums of Tata Motors-Bharat Forge and Tata Power SED-Titagarh Wagons.

Basically armoured personnel carriers designed to swiftly transport infantry soldiers into the battlefield behind tanks, the FICVs are meant to gradually replace the old Russian-origin BMP-II infantry combat vehicles in the Army. Though not as deadly and well-protected as main-battle tanks, the amphibious troop carriers will have their own anti-tank missiles, cannons and machine guns.

The 1.3-million strong Army, incidentally, has 63 armoured regiments of T-90S, T-72 and Arjun tanks, backed by 44 Mechanised Infantry units with their BMPs, for swift multiple ground offensives into enemy territory.

Alpha Design inks pact with ISRO for satellites
Source: Business Standard; December 12, 2016

Alpha Design, a Bengaluru based defence equipment maker today announced the signing of a contract with Indian Space Research Organisation (ISRO) for assembly, integration and testing of Indian Regional Navigation Satellite System Satellites (IRNSS).

In the next two years, with the help of ISRO, Alpha Design Technologies Pvt Ltd (ADTL) will be investing in creating, an ultra-modern satellite manufacturing, assembly, integration, testing and qualification facilities, to independently supply four to five satellites to ISRO, the company said in a release here.

IRNSS is an independent regional navigation satellite system being developed by India.

The city-based company, a manufacturer and technological services provider in India's defence and paramilitary markets, is known for its capabilities in delivering advanced defence electronics and aero structures, as well as R&D and manufacturing, Alpha said in a release.

Presently, the company is selecting 70 of their employees for them to be trained at ISRO for nine months during which the Alpha Design Technologies team would be assisted in on-job learning followed by actual assembly, integration and testing.

Speaking at the announcement, Colonel H S Shankar, Chairman and Managing Director, Alpha Design Technologies, said that as part of the contract, initially the company's teams would get minimum ISRO supervision and later would independently be making complete satellites.

Govt to bring new scheme to boost electronics manufacturing
Source: The Economic Times; December 13, 2016

The IT and electronics ministry will take a reworked flagship incentive scheme for electronics manufacturing to the Cabinet for approval in the next few days, with an aim to boost local production, a top official said.

"We are reworking on MSIPS (Modified Special Incentive Package Scheme) that has to go to the Cabinet in next few days with an objective to fast-forward investments and incentives, simplify disbursement and also to rationalize categories," IT Secretary Aruna Sundararajan said at an industry event Monday.

M-SIPS (Modified Special Incentive Package Scheme) was launched in July 2012 for a three-year period and was revised to include white goods manufacturers and was extended till 2020.

The revised policy likely to come within a week, is aimed to accelerate investments in the country and simplify the disbursement process for the companies setting up units under the scheme.

ET had first reported that the government was reworking the M-SIPS package in its December 7 edition.

Sundarajan said that ease of doing business and stable fiscal regime which the Goods & Services Tax (GST) would bring, would make India an overall attractive place for manufacturing. Meanwhile, a study by advisory firm Ernst & Young (EY) released Monday suggested that the mobile handset sector should be incentivized for local value-addition under the GST regime which can further propel Centre's ambitious Make in India initiative

Startups need to engage more closely with govt: MeitY Secy
Source: Money Control; December 13, 2016

The Indian startup ecosystem needs to work more closely with the government and engage in sharing information and analysis to "make sure all the irrationalities are ironed out over a period of time", a top government official said. Speaking at a CII event, Ministry of Electronics and IT Secretary Aruna Sundararajan conceded that the regulatory environment is far from "ideal" but added that the industry needs to offer more information and analysis to government. "I do concede that we have far from ideal regulatory environment. But the regulatory environment or the tax fiscal environment is not going to better on its own. It will only get better when industry applies itself diligently to interacting and dialoguing with government to make it happen," she said. Sundararajan further said: "I have seen occasions like government will call meetings, (but) nobody from industry at a senior level will come. No serious submissions are made ..". Talking about how startups and government can engage more closely, she said the industry will have to "feed much better information, analysis and facts to government". "...we would need to learn to work much more closely to make sure that all the irrationalities are ironed out at least over a period of time," she added.

Sundararajan said fast pace of technology adoption and sheer scale of the Indian market make it a significant opportunity for startups to tap into and that they need to work on products and services for the masses in the country.

Apple in talks to invest $1 billion in SoftBank tech fund
Source: Reuters; December 13, 2016

Apple Inc (AAPL.O) has held talks to invest up to $1 billion in a new $100 billion tech fund being set up by Japan's SoftBank Group Corp (9984.T), a source familiar with the matter told Reuters on Monday.

SoftBank is investing at least $25 billion in the fund and has been in talks with Saudi Arabia's Public Investment Fund (PIF) for an investment that could go up to $45 billion.

SoftBank has said it plans to make future large-scale investments via the tech fund, rather than on its own.

Some of SoftBank's moves have caused concern among analysts, as the firm wrestles with a 13.7 trillion-yen ($119 billion) debt pile.

SoftBank and Apple were not immediately available for comment.

The Wall Street Journal first reported the news.

Through the investment, Apple would hope to gain insight on emerging technologies, the Journal said, adding that the status of the talks could not be learned.

Indian manufacturing SMEs have the chance to contribute 50% to GDP: Power2SME's R Narayan
Source: The Economic Times; December 13, 2016

Indian manufacturing SME sector currently contributes about 8% to the country's GDP, but has the potential to be a game changer for the economy. That, however, does not mean we do not have any enterprises that we can celebrate. To recognise the good work done by many across the manufacturing sector, Power2SME in association with TiE Delhi-NCR would hold the third Spirit of Manufacturing Awards during the TiE Global Summit on December 16. In a conversation with, Power2SME, Founder and CEO, CEO, R Narayan talks about the thought behind the Awards and his views on India's manufacturing SMEs.

The first season of the Spirit of Manufacturing Awards was held back in 2014 and it was well appreciated and well received by the industry. The award ceremony for season three is scheduled to happen on December 16. It has been three years that Power2SME and TiE Delhi NCR are working together for the Spirit of Manufacturing platform.

The primary idea behind conceptualizing the Spirit of Manufacturing Awards is to recognize the entrepreneurs who have carved a differentiated positioning for themselves in the manufacturing space. Aligned with government's Make in India initiative, the platform showcases some of the most innovative and promising startups in the manufacturing sector.

The platform aims to reach out to all the young entrepreneurs, SMEs and invite them to be a part of the nomination and awards process.

India among world’s top five defence spenders: Report
Source: Yourstory; December 13, 2016

India is among the world’s top five defence spenders with its military budget at USD 50.7 billion, overtaking Saudi Arabia and Russia, according to a new report released recently.

The US, China and the UK remain the top three defence spenders while India has the fourth largest military budget, followed by Saudi Arabia and Russia, according to the '2016 Jane's Defence Budgets Report , released by research firm IHS Markit. India spent USD 50.7 billion this year on defence, up from USD 46.6 billion last year. The report said that India is set to overtake Britain with the third-largest defence budget by 2018 as a result of its modernisation drive.

The US remained way ahead of the world with a budget of USD 622 billion, followed by China at USD 191.7 billion while the UK spent USD 53.8 billion on defence this year, Saudi Arabia USD 48.68 billion and Russia USD 48.44 billion. After three years of budgetary constraints, the definitive UK-based defence magazine forecasts that Indian spending will rise from USD 38 billion in 2010 to USD 64 billion in 2020.

The worldwide outlook shows that global defence spending rose by 1 per cent to USD 1.6 trillion this year, against 0.6 per cent in 2015. This rise has been attributed largely to strategic threats posed by Russia and the Islamic State terror group in the Middle East.

Bosch opens new Reliability Testing Laboratory in Bangalore
Source: The Economic Times; December 14, 2016

Robert Bosch Engineering and Business Solutions (RBEI), today, inaugurated its new reliability testing laboratory in Naganathapura, Bengaluru. The lab houses state of the art infrastructure, equipment and resources to deliver hi-quality ECU testing solutions.

Electronic Component Units (ECUs) is the umbrella term referring to the electronic systems present inside automobiles, aircrafts, home appliances and the like. The facility will be used to test ECUs before being deployed in the corresponding machines.

The testing lab which extends over 5000 sq. ft was built at a cost of $3.5 million dollars. The center hosts a climatic test chamber in which products are subject to extreme conditions in a simulated environment. The test centre can simulate extreme temperatures ranging from -40 °C to 115 °C.

“We have developed core competence in testing for India-specific conditions. We believe that this expertise, coupled with our uncompromising focus on quality can deliver product excellence for our customers. It is in line with the Make In India vision as it supports local development, manufacturing and testing.” said Vijay Ratnaparkhe, Managing Director and President, RBEI.

The laboratory does a multitude of tests -humidity test, vibration test, shock test, drop test and other visual inspections. The tests check the endurance of the product.

The expansion is in line with RBEI’s objective to diversify their services and solutions portfolio into non-automotive domains which include aviation, telecommunication, home appliances and Internet of Things devices.

Infosys invests in Indian drone startup ideaForge
Source: The Economic Times; December 15, 2016

Infosys said it invested an undisclosed amount in Indian drone startup ideaForge, as the IT company looks to tap its solutions for industrial uses. ideaForge’s drones have been used by the Indian Armed Forces for surveillance, crowd monitoring and rescue operations, and have commercial applications in verticals such as energy, utilities, telecom and agriculture, Infosys said in a statement.

“ideaForge’s high performance UAVs, which have been designed and built in India, have significant potential in industrial use cases. We are looking forward to working with ideaForge and bringing their technology, expertise, and solutions to our clients to unlock new business insights from operational data that has previously been difficult to obtain,” Ritika Suri, Global Head of Corporate Development & Ventures at Infosys, said in a statement.

“ideaForge’s high performance UAVs, which have been designed and built in India, have significant potential in industrial use cases. We are looking forward to working with ideaForge and bringing their technology, expertise, and solutions to our clients to unlock new business insights from operational data that has previously been difficult to obtain,” Ritika Suri, Global Head of Corporate Development & Ventures at Infosys, said in a statement.

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