IESA WINWire Feb 20 - Feb 26, 2016
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Strengthen the enabling infrastructure to catalyse the manufacture of IoT devices in India
Source: YourStory; February 20, 2016

As part of India Electronics and Semiconductor Association (IESA), I have advised and mentored startups, including many in the IoT space. It’s a pleasure to see the how the sector has grown in the past few years, The primary objective of IESA is to act as a catalyst for the growth of the Indian Electronics System Design and Manufacturing (ESDM) industry, and support the development and promotion of Made-in-India products for the global markets. Our goal for 2016 is to go all out to build the IoT ecosystem in India.

IoT is everywhere
The Internet of Things (IoT) is slowly, but surely, becoming ubiquitous – at home, at the work place, on the shop floor, and in farms, even on our person. IoT is all about a collective, connected play between hardware, software, and telecom to usher in new waves of innovation. It is an enabling domain that helps address a multitude of challenges and problems using cloud, sensors, devices, connectivity solutions, and even design itself. According to the Department of Electronics and Information Technology (DeitY), India’s IoT industry is expected to be a $15 billion industry by 2020, with a 5-6 per cent share of the global market. While Bangalore is a significant centre, cities like Delhi, Mumbai, Chennai, Hyderabad, and Pune are also witnessing significant activity in the area of product design. Amongst Tier II cities, Hubli is gearing up too, with plans to set up a VLSI incubation centre and a prototype centre, especially for IoT devices.

Speed up reforms to succeed in Digital India, say experts
Source: The Hindu Business line; February 20, 2016

While the Centre has put in place plans to fulfil these needs, Roach said, it should allow more private participation through the PPP model to ensure faster implementation of these projects. The slow pace of things could also impact the Centre’s plans to promote India as a manufacturing hub, said K Krishna Moorthy, Corporate Vice-President, India Design Centre, Rambus Chip Technologies. “India can offer a unique value proposition for manufacturing such as high precision, great quality and low cost, thus surpassing Germany, Japan and China. However, the Centre needs to put in place standards and frameworks in place to enable use of digital technologies in the entire manufacturing value-chain including transportation of goods,” he said. Digitisation will also empower citizens like seen never before elsewhere. “Today consumers are defining what is digital and what technologies will succeed. With digitisation, India is giving birth to world’s biggest digital nation,” said Aditya Rath, partner, management consulting at KPMG. “Today every organisation is looking at digital transformation. We are helping e-commerce companies use social media to understand what the customer wants and how best it can be delivered. There is enormous value that the social media provides and as our broadband penetration grows, more and more people will be empowered and get the best of services at the click of a button,” said Sandip Sen, CEO at Aegis BPO.

AP To Be Developed As Electronics Manufacturing Hub
Source: iGov; February 20, 2016

Union Minister for Communication and Information Technology Ravi Shankar Prasad today said Andhra Pradesh would be developed as a major electronics hub, and announced several initiatives planned in this direction. "Andhra Pradesh would become a major electronics manufacturing hub, as four electronics clusters have already been sanctioned for the state, and the fifth one is in process," Prasad said. The Minister was speaking after laying the foundation stone for the (Society for Applied Microwave Electronics Engineering and Research (SAMEER) Centre for Electromagnetic Environmental Effects (E3) here. "The SAMEER, a Centre for Electromagnetic Environmental Effects, is an autonomous R&D institution under the Department of Electronics and Information and Technology (DEITY), Ministry of Communication and Information Technology (MCIT). It is one of the most advanced institutions of the Government of India," he said. The organization, headquartered at Mumbai, operates through four other centres in Chennai, Kolkata, Guwahati and Visakhapatnam, he said. The permanent building of the institution would be constructed in an area of 15 acres in Gambhiram village in Anandapuram mandal of the district, he said. Prasad said Andhra Pradesh Chief Minister N Chandrababu Naidu's request to set up Information Technology and Investment Region (ITIR) in the state would be considered after the Union government formulates the ITIR policy.

PM Modi to lay foundation for electronics manufacturing cluster in Chhattisgarh
Source: The Times of India; February 20, 2016

Prime Minister Narendra Modi will lay foundation stone on Sunday for one of the country's seven Greenfield manufacturing cluster—an electronic manufacturing cluster to be developed in Naya Raipur, the sprawling modern capital city of Chhattisgarh. Under the Make in India initiative, the centre has proposed seven green field manufacturing clusters—in Naya Raipur (Chhattisgarh), Bhopal & Jabalpur (Madhya Pradesh) Bhiwandi (Rajasthan), Adityapur (Jharkhand) Karnool (Andhra Pradesh) and Falta ( West Bengal). The proposed electronic manufacturing cluster in Naya Raipur, a Greenfield smart city, is spread over in an area of 70 acres and is to be developed at an estimated cost of Rs 89.22 crore, including a component of centre's grant of Rs 43.07 crore. The cluster will have all facilities such as flatted factories which are high-rise, multi-tenanted developments with common facilities such as passenger and cargo lifts, loading/unloading bays and car parks, tool rooms, warehouse, waste management system, smart service centre, skill development centre and hospital. The proposed cluster will have facilities for manufacturing of LED Lights, Solar panels, tablets, mobile phones, IT hardware, set top box electronics and electrical automotive. Chhattisgarh government expects to attract an investment of Rs 2000 crore which could generate employment opportunities to more than 3800 youth.

Cirel Systems Bags IESA Technovation Award 2015 For ‘Most Promising Startup’
Source: EFY Times; February 21, 2016

Cirel Systems, a fabless semiconductor company bagged the IESA Technovation 2015 Award as the ‘Most Promising Startup’ during Vision Summit 2016. The company was recognized for building differentiated Integrated Circuits (ICs) which are used primarily in consumer applications. One of its IC is being used in the stylus of Microsoft Surface tablets, some of the other ICs are used in portable head phone amplifiers and MEMS microphones. The company is focused on developing new ICs for applications in portable devices like tablets, 2-in-1 laptops and wearables. Technovation Awards, celebrating excellence in ESDM aims to recognize role models for innovation and excellence in the electronics and semiconductor ecosystem. The Awards honor India’s best individual contributors and organizations that drive the industry forward; and provide them with a platform to showcase their achievements and product successes. Elated on winning the award, Sumeet Mathur, CEO of Cirel Systems said, “This is a recognition for our ongoing efforts to build differentiated Integrated Circuits (ICs). Our ICs are helping customers shrink their solution size and reduce power both key requirements across the portable electronics space. We have shipped over 10M units across all our products and are investing in R&D to continuously innovate and build compelling solutions.”

Electronic policy to boost ESDM industry, MSMEs: Nashik Inc
Source: The Times of India; February 22, 2016

Local industries have welcomed the state government's approval to the electronic policy to boost manufacturing of electronic equipments and components across Maharashtra in a bid to reduce import of such equipment. According to the industry bodies, the electronic policy of the state will not only fuel growth of the electronics system design & manufacturing (ESDM) industry, but will also help the micro, small and medium enterprises (MSMEs) across the state as they will get subsidies and other incentives while setting up electronic manufacturing units. The policy will also help build new entrepreneurs in the electronics segment. As per the new policy, the ESDM industry in Maharashtra is expected to achieve a turnover of USD 12 billion by 2020 with an investment of USD 3 billion, creating additional employment generation in this sector for one lakh people. The export of ESDM sector is expected to increase up to USD 2 billion by 2020. The TOI has on April 25 last year had reported that the state would come up with a new electronic policy boost hardware manufacturing in state. The new policy includes provisions for MSMEs, like 25% of one-time subsidy on capital equipment for technology upgradation limited to Rs 25 lakh, 25% of one time subsidy on capital equipment for cleaner production measures subject to limitation up to Rs 5 lakh and 75% subsidy on expenses incurred on patent registration limited to Rs 10 lakh for national patents and Rs 25 lakh for international patents.

Govt plans setting up 10 MSME clusters in Haryana
Source:; February 22, 2016

Haryana government said the Centre has given its approval to set up 10 clusters to boost the Micro, Small and Medium Enterprises (MSME) sector in the state. “Special focus is being laid on the traditional clusters, rural functional clusters and thrust or focus clusters,” Haryana Chief Minister Manohar Lal Khattar said. The central government has accorded approval for setting up of six clusters and in principal approval has been granted for four clusters of MSMEs, he added.

He said there are a total of 92,525 MSMEs in the state and out of these 2,835 such units have been set up during last 15 months tenure of present state government. These have catalyzed an investment of Rs 2,297 crore and provided employment to 50,730 youth in the State. He said that special emphasis is being laid on ‘Make in Haryana’ on the pattern of ‘Make in India’ programme launched by Prime Minister Narendra Modi.

The state government has implemented new Enterprises Promotion Policy – 2015. He said the aim is to exceed the growth rate of State’s Gross Domestic Product by more than eight per cent, create employment opportunities for four lakh youth and attracting investment of Rs 1 lakh crore. Khattar was speaking at a Regional Conclave on MSMEs, Northern Region organised by Union Ministry of MSMEs in Chandigarh.

Ricoh India bags order worth Rs. 344 cr from Kerala State Electronics Development Corporation
Source: India Infoline; February 22, 2016

Ricoh India Ltd., a market leader in Printing & Document solutions and IT services today announced that it has signed an Order worth Rs. 344 Crores (Rupees Three Hundred and Forty Four Crores only) from Kerala State Electronics Development Corporation Ltd (KELTRON ) for Supply, Installation and Commissioning of Computer Hardware, Connected Accessories, Software, Maintenance of Equipment(s) and provision of Computer Education Services in 2000 Government & Government Aided High Schools in the State of Odisha on Five (05) Years BOOT Model Project under ICT @ School Scheme.

Speaking on the occasion, Mr. Manoj Kumar : Managing Director and CEO, Ricoh India said, “We are honoured to be associated with this prestigious project and work along with the government of Odisha and KELTRON. It is second largest project for Ricoh India after the Department of Post Digitization order, that we received last year and reflects Ricoh’s continued commitment to partnering with organizations to help them achieve greater cost efficiencies and improved productivity through increased modernisation from technology. In addition, with this partnership our endeavour is to support Indian Government initiative of “Digital India”.

Mr. Kumar further added, “We are confident of delivering the best value to the government of Odisha as well as KELTRON and ensure seamless integration of our products and solutions to increase their efficiencies and enhance the functioning.

Software exports highest in 2015: President
Source: Business Standard‎; February 23 2016

President Pranab Mukherjee said on Tuesday that the country recorded the highest ever software exports during 2015.

Addressing the joint session of both houses of parliament, he said that 29 electronic manufacturing clusters were under development.

"The country recorded the highest ever software exports during 2015," the president said.
"Setting up world-class infrastructure for electronics manufacturing across the country remains a priority for my government," he said.

He said the government's endeavour is to scale new heights in space building upon the success over the past year.

DeitY forms panel on Ringing Bells, meets company officials
Source: Economic Times; February 22, 2016

The Department of Electronics & Information Technology has formed an internal panel to assess the viability of Ringing Bells, which launched the world's cheapest smartphone for Rs 251, as senior company executives met ministry officials to explain their sales model.

The internal panel will delve into the credibility of Noida-based Ringing Bells, according to people privy to the development. This is being done at the request of the Indian Cellular Association, which questioned the pricing economics, and BJP lawmaker Kirit Somaiya, who alleged the company's strategy was a 'ponzi' scam.

Executives including company president Ashok Chadha and director Mohit Goel met officials of the Ministry of Communications and IT and explained the viability of their model. They said that "they will withdraw the money raised by booking 30,000 handsets only after they're delivered. The money is in an escrow account at present," one of the people said, seeking anonymity.

Will Union Budget 2016 bring cheer for Indian IT
Source: Dataquest; February 23, 2016

It is that time of the year when once again anticipation grows and expectations fly high, with the Union budget being just around the corner. As the countdown to Union Budget 2016-2017 begins, the IT industry is upbeat and full of hopes that this time the Budget will bring some much-awaited reforms for Indian IT and bolster growth in the sector. We look at some key issues/points that if addressed in the upcoming Union budget by the Narendra Modi government, will bring cheer for the IT industry. Indian IT has been facing various challenges over the last few years, especially with lack of clarity on transfer pricing norms. Industry veterans share a combined view that it is high time that the issue is addressed in the budget. M.N Vidyashankar, President, IESA, stressed that transfer pricing arbitrariness by assessing officers is something that needs attention. “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.” He added that the industry needs to give a clear message to the government on this front.

Budget 2016: IT Ministry proposes 10% customs duty on some telecom and medical devices to boost manufacturing
Source: The Economic Times; February 24, 2016

The Ministry of Communications and Information Technology (MCIT) has proposed a slew of measures to spur local manufacturing of electronic products, including imposing a 10 per cent basic customs duty (BCD) on populated printed circuit boards of telecom goods and some medical electronic devices. As part of its recommendations for the upcoming Union Budget, the ministry has also suggested removal of duties on inputs used by export-oriented units for making electronic goods for defence and space organisations. According to senior ministry officials, a 10 per cent BCD on populated printed circuit boards (PCBs) is aimed at encouraging local production of the component, which is used in mobile phones and computers, among other telecom connectivity equipment. "Duty has also been proposed on preform of silica, for manufacture of optical fibre," an official said. The aim is to bring the entire supply chain and more value-addition into local production.

After the government made mobile phone imports 11.5 per cent more expensive in last year's budget, companies such as Foxconn, Sony, Lava, Micromax and Intex took to domestic manufacturing, raising local production by 95 per cent on-year to Rs 18,000 crore and volumes soaring to 100 million units in 2015, according to the Indian Cellular Association.

Mobile phone companies likely to invest Rs 650 crore by March: Ravi Shankar Prasad
Source: DNA India; February 24, 2016

Mobile phone companies are likely to invest Rs 650 crore by March and production of handsets in value terms is expected to cross Rs 40,000 crore by the end of current fiscal, Parliament was informed on Wednesday. "The total investment made by companies during the past 7-8 months are estimated to be in the range of Rs 250-300 crore which is likely to increase to Rs 600-650 crore by the end of 2015-16," Telecom Minister Ravi Shankar Prasad said in a written reply in Lok Sabha. He was replying to a question on mobile phones production in the country. "As per the Indian Cellular Associations, the production of mobile phones in India during current financial year is expected to cross Rs 40,000 crore compared to the production of Rs 18,900 crore during 2014-15," Prasad said. He said over 30,000 new jobs have already been generated in this industry during the past 7-8 months and an additional 8,000-10,000 jobs are expected to be generated by the end of current fiscal. "The differential duty for mobile handset manufacturing is being termed as a game changer by the industry and consequent to this various mobile phone manufacturing companies like Foxconn, Xiaomi, Micromax, Celkon and Karbonn have committed to mobile phone manufacturing in the country," Prasad said. The minister mentioned the government is providing modified special incentive package scheme (M-SIPS) which provides financial incentives to offset disabilities that electronic manufacturing sector has been facing.

IT & BPO: Tax sops for start-ups; funds for cyber security
Source: Hindu Business Line; February 25, 2016

The technology industry is looking to Budget 2016 for a better business environment and ease of doing business. Startups and entrepreneurs are hoping for exemption from direct and indirect taxes including MAT, where start-ups lose a big chunk of cash flow.

The start-up ecosystem still lacks depth in terms of capital availability at the seed level. Over the recent years, angel investors have been helping these start-ups develop their ideas. The Budget has to roll out measures to encourage them.

As part of the Start-up India action plan, the Centre has announced plans to waive capital gains tax on investments in start-ups. It should also allow the companies to carry forward losses, even if there is a change in the ownership structure due to capital infusion in the entity.

There is still ambiguity in taxation rules around e-tailers in most States. Also, several e-commerce firms are facing challenges in shipping their goods to States due to compliance issues and, more recently, entry tax for e-commerce consignments. Such practices introduce barriers in adoption of technology and more efficient business models. The Centre should also consult the services sector as GST details are being formulated.

IT hardware sector can generate 4 lakh jobs: MAIT
Source: BGR India; February 25, 2016

IT hardware sector in India is predicted to play key role in crucial missions like Digital India and Make in India. The sector is said to create a total of 4 lakh jobs in the coming 5 years.

The IT hardware sector has the potential to generate four lakhs jobs in five years if the government provides requisite tax impetus to the manufacturing of notebook and desktop personal computers in the upcoming Budget, industry body Manufacturers Association for Information Technology (MAIT) said in a study on Wednesday. ”Within the manufacturing sector, the growth of the IT electronics sector is critical for realizing the visionary initiatives of ‘Make in India‘ and ‘Digital India‘ launched by the government, and help India garner a 10 percent share of the worldwide ESDM (Electronic System Design & Manufacturing) sector by 2020,” the MAIT study said.

“What’s more, there is potential to generate 100,000 direct jobs and 300,000 jobs in components manufacturing over the next five years,” it added. ”India has a large and growing market for IT products and ESDM hardware.

Compiled by IESA Research

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