IESA WINWire Feb 13 - Feb 19, 2016
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Relocate your manufacturing base to India: Amitabh Kant tells Japan
Source: The Economic Times; February 14, 2016

Japanese companies should relocate their manufacturing base to India as this is the "only way" to strengthen bilateral partnership between the two countries, DIPP Secretary Amitabh Kant said today. "You (Japanese companies) have to relocate your manufacturing base into India... This is the only way you can strengthen Japan's and Indian partnership for the future," the Department of Industrial Policy and Promotion Secretary said at the Make in India Week. At a special session in the presence of Prime Minister Shinzo Abe's advisor, Kant said Japan is an advanced nation and it is too expensive to do manufacturing there. "You've to capture India and you've to capture the world and the only way you can do it is if you manufacture here," Kant, the CEO-designate of government thinktank NITI Aayog said, assuring full support of the Indian government for it. NITI Aayog Vice-Chairman Arvind Panagariya said easy availability of capital in Japan and the cheap labour in India are complementary to each other. Panagariya said Japanese companies present in China may also like to come in India because of the difficulties being faced by the country's northern neighbour. It can be noted that Japan has given multiple stimuli to the economy and is the only major country in the world where the central bank has negative benchmarking lending rate .

Invest in India or you may 'miss the bus': Cisco
Source: The Economic Times; February 14, 2016

Betting big on India as an investment spot, Cisco executive chairman John Chambers today suggested businesses not to 'miss the bus' as the country is in sync with the speed of innovation in the current digital age. "Eighteen months ago, I said if you want to bet on one country, it is India as the country is in sync with the speed of innovation in the current digital age," Chambers said at the CNN Asia Business Forum 2016 organised as part of ongoing Make in India (MII) Week here. Noting that every company in this world would become technology-based, Chambers said 40 per cent of non-tech companies running today will disappear in the next 10 years. "Anticipating the market and adapting to change in market dynamics, India is moving at a fast pace in the digital era," he said as per CII statement. Chambers noted that regardless of political divides, Indians have to come together for growth. "If you still haven't invested in India you may miss the bus," Chambers said. Yesterday, he had said, "When you think about India the opportunity is very simple to become the manufacturing hub for Asia". "The ability to do that in auto-motives in which you are making huge progress, to expand that to electronics, to expand that to hi-tech and pharmaceuticals is within our grasp".

Double duty: devices that do twice more than designed for
Source: Deccan Chronicle; February 15, 2016

Some ideas are so elegantly simple we ask ourselves 'why didn't anyone think of that before?' I was struck by this thought when I saw the Router UPS which won Bangalore-based Resonate, the Best Startup award last week, at the Vision Summit of the India Electronics and Semiconductor Association (IESA). Many of us have a home Wi-Fi router which lets us wirelessly use the same wired broadband Internet connection, across multiple PCs, laptops and mobile phones. We are also plagued by frequent power cuts because the router which takes its power from a mains power adapter goes off every time. In my own case, a sort of perverse Murphy's Law seems to operate -- such interruptions to my Net connection, invariably occur when I am in the last stage of an e-commerce transaction, entering my credit card number. Why not create a special UPS for routers -- a scaled-down version on the lines of the power bank one uses to charge phones? The Router UPS is just that, a palm -sized battery backup for all standard routers that offers up to 2000mAh and 4 hours of backup -- enough for most urban power cuts. The UPS comes with three different bridge cables, which between them should match any router in the market. You remove the power adapter that comes with the router, and insert the UPS between the router and the adapter, then plug the adapter to the mains. That's it! As Resonate founder Sudhir Sathiyamurthy says, ' When power goes, the Wi-Fi doesn't!'

Hardware start-ups warm up to Make in India
Source: Mint; February 15, 2016

“You need to give it two to three years to see the kind of traction that you are looking at. If you look at the likes of Micromax, Karbonn and Lava, if these big players are coming in a big way, the entire ecosystem will get a major fillip. Make in India covers both venture capital-funded start-ups and small and medium enterprises. It also covers large enterprises. Start-ups can join hands with a partner and such a move will help in branding as well,” said M.N. Vidyashankar, president, India Electronics and Semiconductor Association. A major fillip came in August last year when Foxconn Technology Co. Ltd, the world’s largest contract electronics maker, announced a $5 billion investment to set up manufacturing units in Maharashtra over the next five years. A re-entry into India by the Taiwanese company has spurred other electronics makers to set up shop here and start the process of building a comprehensive, ground-up electronics supply chain that is essential for the Make in India push. Over the last year, several international businesses and home-grown phone makers, who otherwise sourced from China, have set up shop in India. China’s Lenovo Group Ltd started assembling smartphones in its 40,000 sq. ft facility in Chennai run by Singapore-based contract manufacturer Flextronics International Ltd. The same month, China’s Meizu Technology Co. Ltd, in which e-commerce giant Alibaba Group Holding Ltd is a minority stakeholder, entered the Indian market and said it plans to make handsets in the country.

Electronic Manufacturing Cluster to Have IT SEZ in Vicinity
Source: Daily Pioneer; February 15, 2016

The Chhattisgarh Government will be setting up an IT SEZ in the vicinity of the Electronic Manufacturing Cluster (EMC) to be established at Sector 22 in the new Capital. The EMC would be at located about 7 km from the Swami Vivekananda . The site enjoys abundant water supply from the Mahanadi river and also have also sufficient power connection to cater the needs of operation in EMC. The Greenfield EMC in Chhattisgarh was accorded ‘in-principle’ approval as on September 21, 2015. The location of the EMC is at Tuta village in Sector-22 of Naya Raipur. The chief promoter of the project is Chhattisgarh State Industrial Development Corporation (CSIDC) and the project is to be established in an area measuring 70 acres. Notably, on December 20 last year, the Chhattisgarh government had informed in an official statement that the Central government has consented to provide its final approval to the EMC. An assurance in this regard was given by Union Telecom Minister Ravi Shankar Prasad to Chhattisgarh Chief Minister Raman Singh during a meeting in New Delhi on December 20 last year. Providing details on the ‘Electronic Manufacturing Cluster’ during the meeting, Chief Minister Raman Singh had told the Union Minister, as per the official statement, that as many as 11 companies have signed Memorandum of Understanding (MoU) to the tune of around `968 crore for setting up projects in the cluster. The Chhattisgarh government has completed requisite preparation for development of the ‘Electronic Manufacturing Cluster’ and work in this regard is going to start immediately after receiving final approval from the Centre, it had mentioned.

Make in India week: Odisha receives investment proposals worth over Rs 70,000-crore
Source: DNA; February 15, 2016

Odisha government on Monday said it has received investment proposals to the tune of Rs 70,959 crore in various sectors including manufacturing and renewable energy. "We have received commitment of over Rs 70,000 crore from sectors like manufacturing to food processing and renewable energy. Odisha has become a choice for investors due to availability of skilled labour, political stability and resources," Odisha Industries Minister Debi Prasad Mishra told reporters here. Engineering major Larsen & Toubro is planning to invest Rs 12,000 crore for an aluminium refinery, while ITC is planning an investment of Rs 800 crore in food processing and hospitality. NALCO is looking to invest Rs 20,500, while Tata Steel SEZ plans to invest about Rs 2,000-2,500 crore in the state. Besides, GMR is looking to expand its power plant, US-based global electronics manufacturing services provider Sanmina is planning to set-up a facility and mining conglomerate Vedanta is planning to commission a downstream industrial park in the state. The minister said three companies have evinced interest in the renewable energy sector for solar and tidal projects.

Foxconn to Inaugurate Maharashtra Manufacturing Plant In May
Source: Tele Analysis; February 15, 2016

Foxconn,world’s largest electronics contract manufacturer, will inaugurate its manufacturing plant in Maharashtra in May this year and would soon become operational. “It’s at the final stage of commissioning and an inauguration is being planned in May,” Minister of industries of Maharashtra government Subhash Desai told TeleAnalysis. He was speaking at the sidelines of ‘Make In India’ event in Mumbai. This plant will be Foxconn’s first electronics manufacturing facility in the western state. The Taiwanese company scouted many sites in the state but finalised Talegaon and Khopoli for setting up its plant. “The state government has provided 1,500 acres of land for Foxconn manufacturing facility,” added Desai. According to MIDC, Talegaon Industrial Area is within the limits of villages Navlak-Umbre, Akurdi and Ambi as Talegaon Industrial Area and the land rates for industrial plots per square meter is Rs 2,395. Khopoli is an industrial town in the Khalapur taluka of Raigad district and is at the base of the Sahyadri mountains. In August last year Foxconn finalized Maharashtra as its first facility for electronics manufacturing and is planning to invest Rs 35,000 crore and employ around 50,000 people in the next 5 years.

Why Make in India may be the answer to India's unemployment puzzle
Source: The Economic Times; February 16, 2016

Job placement firms expect the government's renewed push to manufacturing through its Make in India programme to start generating new employment opportunities in the next few months. The government hopes to create a 100 million new jobs by 2022. The firms estimate that 7.2 lakh temporary jobs are likely to be created in the next one year. It would add 8-13 per cent to the current jobs pool as investment into manufacturing, engineering and related sectors rise. They say the Make in India initiative has led to an increase in hiring in these segments as well as e-commerce and Internet-related sectors. "Skill development has gained enormous traction with Make in India. The plan to create 100 smart cities is also expected to fuel job growth," says Rituparna Chakraborty, co-founder of TeamLease Services. Estimates also suggest that refocusing on India's traditional occupations would potentially create 10 million jobs a year. For instance, the Indian Leather Development Programme trained 51,216 youth in the past 100 days and it plans to train 1,44,000 young person’s annually. Four new branches of Footwear Design & Development Institute — at Hyderabad, Patna, Banur (Punjab) and Ankleshwar (Gujarat) — are being set up to improve training infrastructure.

Make In India: With investments pouring in, India logs into hi-tech manufacturing
Source: The Economic Times; February 16, 2016

Neither Thailand nor Vietnam were on the radar of hightech manufacturers even a decade ago. Today Thailand is the world's largest producer of hard disks and Vietnam boasts of Asia's most modern fabs or chip-making factories. For much longer than that India has been trying to attract high-tech manufacturers, without success. What passed of as sophisticated plants at best produced low- to midrange mobile phones, computers or plastic casings, they were essentially assembly line operations with parts procured from factories in China, Taiwan and put together in India — like flat screen TVs, laptops, desktop computers and so on. "India was always a software story, high-tech manufacturing was never a priority," says Amar Babu, chief operating officer, Lenovo Asia-Pacific and chairman Lenovo India. MN Vidyashankar, president, India Electronics and Semiconductor Association met a delegation from China's Guizhou district scouting for local manufacturing partners in Bangalore. "This was during China's New Year when everything is shut there. This shows the importance India is gaining in manufacturing. We see more than just green shoots in high-tech manufacturing now," He says.

IESA Pre-Budget Recommendations
Source: electronicsmaker; February 16, 2016

Mr. M.N Vidyashankar, President, IESA
We need to have Re-Exports zones in the country, similar to the SEZs we are promoting. The re-exports zones should have the facility of importing capital equipment, products, devices which will undergo value addition in the Re-Exports zones. Thereafter, it would be exported from the re-export zone with a duty free/tax-free dispensation. It has to be a bonded customs warehouse, identical to the dispensation in SEZ. Re-export zones have a huge potential of creating jobs, rapid prototyping facilities, testing, tooling, etc.

Measures should be taken to solve the MoEF hurdles that prevent import of used electronic equipment. This is severely crippling the R&D activities, and is hurting everyone. This issue has been unresolved for the past 3 years.It’s time something is done about it at the earliest. Lots of investments are getting re-routed to other countries, which we can ill-afford.

Another area is, Transfer Pricing arbitrariness by assessing officers. Many battles have been fought and court and tribunal orders have gone in favor of the enterprises but the assessing officer’s whims and fancies continue……

Boeing doubles outsourcing from India to $500 million in a year
Source: Economic Times; February 16, 2016

Boeing has doubled its outsourcing from India to $500 million in the last one year, its country head said Tuesday.

"We continue to increase our sourcing from India. If you look at the all the OEMs (original equipment manufacturers), we source from than any of them," Pratyush Kumar told ET, adding the chunk will only grow.

Speaking on the sidelines of the Make In India summit, Kumar said Boeing's top three initiatives with India have been the wire harnesses that TAL Manufacturing Solutions, a Tata Group company; wire harnesses for the fighter jets F15 and F18 with Hindustan Aeronautics and a Bangalore-based SME and a framework of agreements framework agreement with Tata Advanced Systems Limited.

Boeing works to manufacture critical parts for the Chinook heavy-lift helicopters. Apart from floorbeams, TAL also makes makes ground support equipment for the C-17 aircraft.

Recently, Boeing signed a framework agreement with Tata Advanced Systems Limited (TASL) to collaborate in aerospace and defense manufacturing and potential integrated systems development opportunities, including unmanned aerial vehicles.

Apple Supplier Delta Electronics Plans to Quadruple Revenue From India
Source: NDTV; February 17, 2016

Taiwan-based Delta Electronics Inc expects to quadruple annual revenue from India over the next three years as it makes more power components in the country, in tune with Prime Minister Narendra Modi's push to develop industry.

Boosted by the rollout of India's 4G broadband network, the company aims to generate about $700 million (roughly Rs. 4,795 crores) in revenue from the country by 2019, Dalip Sharma, Delta's India managing director, said in an interview on Tuesday.

Delta's revenue from India totalled $169 million (roughly Rs. 1,157 crores) last year.

The company, a supplier of components to Apple Inc, entered the Indian market in 2003. It recently unveiled a $500 million investment in manufacturing and research facilities in India.

Since becoming prime minister in 2014, Modi has travelled far and wide to promote his 'Digital India' and 'Make in India' campaigns, seeking to connect 250,000 villages to the Internet and courting investment to expand India's manufacturing base.

Make in India: New opportunity for manufacturing, start-ups
Source: EET India; February 18, 2016

Developing a vibrant Indian Electronics Systems Design and Manufacturing (ESDM) ecosystem has always been what India Electronics and Semiconductor Association (IESA) is committed to, and projecting India as a go-to destination for electronic products is slowly beginning to be a reality. The progressive policies and the emphasis on 'Make in India' initiative have played a significant part in the resurgence of the manufacturing sector. Extension of MSIPS should see a surge in the manufacture of solar products, PV cells, sub-strata, etc. The Department of Electronics and Information Technology (DeitY) is going ahead full steam with setting up electronics manufacturing clusters (EMCs) in various states. These are designed to provide a common platform for all the players in the electronics manufacturing field. They ensure adequate testing facilities at competitive costs to small businesses like MSMEs and start-ups, which will, in turn, push electronics component manufacturing.

Policy push
The policies and push of the government are adequate to bring a positive momentum in the nation. This is the best opportunity for us to become the manufacturing and start-up capital of the world. Implementation of the policies, approval process of the projects, need to be fast tracked, in order not to miss the present opportunity which stands in front of us. Make in India has put the nation on the global landscape and also, created an environment conducive for international and indigenous companies to setting up manufacturing units in India.

Ford inks Rs 800 crore Chennai office deal for tech hub
Source: The Times of India; February 18, 2016

Automaker Ford Motors has inked a deal to build a new 2 million sqft office for its global shared services business in Chennai entailing a little over '800 crore investment, people directly familiar with the matter said. Ford, which has a plant in the outskirts of Chennai, acquired 28 acre land parcel at the Electronics Corporation of Tamil Nadu SEZ. The move is aimed at consolidating its multiple tech offices into one campus, besides accommodating growth plans. Ford will initially build a 1.5 million sqft office (to house around 20,000 employees) but has the option to add another half a million more in the future. The just clinched land acquisition was facilitated by the Tamil Nadu government.The move by Ford is the first major activity in the Chennai office space market recovering from the recent devastating floods. TOI could not reach Ford India for immediate comments. Ford employs about 14,000 people in India across its two manufacturing plants in Chennai and Sanand and global business services operations. In September, the car maker signed a MoU with the state government for expansion plans without disclosing the details. The shared services centre will host operations in areas of IT, product engineering, finance and accounting and data analytics among others. The campus will also have a global engineering and technology centre. Ford's move tracks a recent spurt in the city's office leasing activity .

Has India’s electronic manufacturing turned a corner?
Source: Livemint; February 18, 2016

India’s electronic imports, which account for 27% of the country’s trade deficit, contracted in January for the first time since April 2014, while electronic exports turned positive for the second consecutive month, which if sustained could change the dynamics of India’s manufacturing and international trade.

In January, electronic imports contracted 2.2% to $3.2 billion, while electronic exports rose 7.8% to $0.5 billion. In November, growth in electronic exports turned positive at 0.66%.

If these data seem one off, consider more proof. Radio, television, communication equipment and apparatus group—which also includes other electronic items, including mobile phones, in the index of industrial production (IIP)—saw positive growth for the third consecutive month and grew at a whopping 82% in December, while cumulatively it contracted 1.2% during the April-December period, signalling a turnaround in October.

M.N. Vidyashankar, president of India Electronics and Semiconductor Association, said local manufacturing of electronic items have picked up with increase in value addition. “Production of LED panels, set-top box and mobile phones has got some traction in recent months. This is a good sign and government’s Make In India initiative seems to be showing results,” he added.

Compiled by IESA Research

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