IESA WINWire Feb 27 - Mar 04, 2016
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Link engineering skills with manufacturing industry: Chairman, IESA
Source: Governance Now; February 27, 2016

In 2011, India Electronics Semiconductor Association (IESA) forecasted that by 2020 India will consume $400 billion of electronics. At present, nearly 70 percent of it gets imported which is a significant drain on the foreign exchange. This brings us to the need for developing a local manufacturing system and the ecosystem that includes the entire supply chain that goes into electronic manufacturing. Talking to Taru Bhatia, Vinay Shenoy, chairman, IESA, shares his ideas on how this can happen.

What role states play in making Make in India programme a success?
The government’s policies for manufacturing industry are progressive. For example, the MSIPS (Modified Special Incentive Package Scheme) policy where 25 percent of the capital investment is provided as grant, plus certain income tax benefits. But we notice that the ultimate incentive to work has to come from the states. So the states have to be as enthusiastic as the government in providing the support. If the central government provides 25 percent of grant but state government takes two years to provide land or high quality electricity or logistical support then it will not be going to take off. Entrepreneurs in the industry would like to implement a factory from concept groundbreaking to production in about eight-month time period. Now if there is uncertainty then it will not help. As an agency we would like to see all the states demonstrating same level of enthusiasm and formulating state-level policies and establishing infrastructure to promote manufacturing. Take for instance CM of Andhra Pradesh.

Defence industry forms body to power ‘Make-in-India’
Source: The Times of India; February 27, 2016

Toeing the government's line on self-reliance in defence production and increased private participation in the 'Make-in-India' programme, key players from the Indian defence manufacturers have launched an industry body Defence Innovators and Industry Association. In a statement issued on Friday, DIIA has said: "We will provide a platform for like-minded organisations to rally around, collaborate and co-operate to forge ahead in making the 'Make by India' a sustainable initiative. Indigenously designed, developed and manufactured products should be given higher preference is the main point that the association will promote." Claiming that no industry association in the past has encouraged indigenous R&D in the sector, DIIA said: "One of the major ideological viewpoint that DIIA stands for and is attempting to promote is that it is an undeniable fact that many Indian companies, particularly MSMEs, have been spearheading intense R&D efforts to indigenise defence equipment." "...These initiatives and success stories need to be converted to fruitful business contracts which not only help the companies sustain themselves but aids the nation in attaining the much needed strength in being self-reliant in its defence requirements," the statement said. DIIA Chairman Ashok Atluri said: "...When you look at the value chain of high-technology complex defence equipment only 30%-40% of the costs contribute towards cost of manufacturing. Whereas almost 60% of the value is captured at the design and development level.

‘For Make in India to succeed, harness technology, foster innovation’
Source: The Indian Express; February 28, 2016

The vision to increase the share of manufacturing in the country’s gross domestic product (GDP) and creating employment may attract Indian and foreign capital as well as technological investment across an array of 25 sectors. Recognising the natural, cultural as well as economic diversity, including inherent advantages of specific regions, the ‘Make in India’ initiative hopes to harness and develop relevant sectors in each state. In the words of the Prime Minister Narendra Modi , the ‘Make in India’ scheme is aimed at creating a “global manufacturing hub” in India. In addition to the measures aimed at ease of doing business in India, including relaxations in the foreign direct investment (FDI) norms and banking policy, this programme hopes to see an increased economic activity in high-value industrial sectors through increased foreign collaboration. The aim is to propel India into a global hub of excellence for a wide array of products and services. By way of illustration, as a precursor to this initiative, in mid-2014, India enhanced FDI in the defence sector and allowed FDI in railways infrastructure; as a consequence, defence production, including import substitution for military imports, is finally establishing roots in India.

IT hardware sector expects Rs 10k cr investment, lower prices
Source: Business Standard; February 29, 2016

Hailing budget announcement, IT hardware companies expect prices of devices like modems, routers, set-top-boxes to go down by 8 per cent within a year and about Rs 10,000 crore investment in local production.

"The change in duty structure will encourage manufacturing of consumer premise equipments like modems, routers, digital video recorder, STB for internet, IP camera. We expect investment of about Rs 10,000 crore for their local production.

I expect their prices will go down by 8 per cent in first year and by 10 per cent in one and half year," MAIT Senior Vice President Nitin Kunkolienker told PTI.

The Manufacturers' Association for Information Technology (MAIT) however said though its a big boost for manufacturing of IT products, government has not given any impetus for local production of personal computers in the country and networking switches which are in heavy demand have also been left out.

The Union Budget for 2016-17 has reduced excise duty on these product from 12.5 per cent to 4 per cent without CENVAT credit or 12.5 per cent with CENVAT credit.

"Exemption of BCD and SAD for ATMP for semiconductor wafer fabrication and LCD fabrication is a very well planned move and will certainly give a boost to local manufacturing especially to SMEs," IESA President MN Vidyashankar said.

India Electronics and Semiconductor Association (IESA) Union Budget 2016 reaction
Source:; February 29, 2016


Start-up focus: Reaction on Government’s INR 500 crore initiative for Standup India
Government has shown great intent in promoting the start-up ecosystem in India. With Government’s announcement to promote women entrepreneurship, and entrepreneurship in the SC/ST category, we will have an immense role to play along with MSME in making this initiative successful. We are honoured with government’s trust on associations like IESA and look forward to work in tandem to realise this socially important goal………….


Agriculture focus:
Government’s focus on agriculture will bring an accelerated pace to the growth of tech companies working in the agriculture space. With companies already aggressively addressing the agriculture needs with innovative Internet of Things solutions, we foresee this initiative to be a collaborative effort among such tech companies, government and the farmers. This will also strengthen the initiative start-up ecosystem in order to enable smart agriculture……………….

Guj new Electronics Policy announces subsidy, incentives: PTI feed, News
Source: India Today‎; February 29, 2016

Gujarat Government today announced subsidy up to Rs 100 crore on capital cost to set up a Electronics Manufacturing Cluster (EMC) in state besides other incentives under its Electronics Policy 2016.

"This new policy is aimed at attracting an investment of USD 6 billion in the next five years, and aims to create five lakh new employment opportunities in Gujarat," Science and Technology Minister Govind Patel announced on the floor of the Legislative Assembly while announcing the policy, which will remain in effect till 2021.

Under the policy, the government will provide subsidy up to Rs 100 crore on the capital cost to set up EMC. Further, subsidy of Rs 5 crore will be given to establish high power electric sub-station for such EMC.

As per the estimates presented in the House, electronics items worth USD 100 billion are currently sold in Indian market every year.

"Looking at the pace at which this industry is growing, this market will touch the mark of USD 400 billion in next five years," the minister told the House.

Giving details about various provisions under the policy, Finance Minister and government spokesperson Saurabh Patel stated that such EMCs will be given various rebates in registration fees, land transfer stamp duty, power tariffs and in the payment of electricity duty.

Defence allocation rises to Rs 2.49 lakh cr
Source: Deccan Herald; March 1, 2016

The Budget allocation for the defence zoomed to Rs 2.49 lakh crore in 2016-17 – the highest among all government departments. However, the figure was not mentioned by Finance Minister Arun Jaitley in his Budget speech, making him the first in 15 years to skip military allocations. The military allocation was later clarified on Twitter by Minister of State for Finance Jayant Sinha. “Defence allocation rises to 2.49 lakh crores, an increase of Rs 24,463 crores over last year,” tweeted Sinha. Last year’s revised estimate was Rs 2.24 lakh crore as the defence ministry was unable to spend a large part of its budget. The enhancement is just about Rs 2300 crore, but when compared against the revised estimate, the increase is much more. The allocation in 2016-17 for capital expenditure, meant for purchasing new military hardware and payment for existing contracts has been pegged at Rs 86340 crore. This is substantially lower than the allocations under the same head in the last two fiscals, when the defence ministry could not spend the money it received. The allocation for defence pension, however, has been enhanced this time by more than Rs 22,000 crore as the government is set to implement the one rank one pension scheme for the ex-servicemen. A special allocation of Rs 3600 crore was made in the telecommunications budget to set up an optical fibre network for the defence services.

Kinfra Offers Incubation Facility for Electronics Startups
Source: The New Indian Express; March 1, 2016

Opening up fresh opportunities for entrepreneurs willing to launch startups in the electronics sector, the Electronics Incubator at Kinfra Hi-tech Park, Kalamassery, has invited startups for incubation.

The incubator, which targets over 50 companies every year, has space to accommodate 200-250 people at any given time.

The electronics incubator is located in a well-equipped 25,000-sqft facility at the Technology Innovation Zone of Kinfra.

The incubator will provide electronic workbenches to the incubated startups, along with high-end testing and measuring equipment. The facility will be housing a PCB assembly line, open source board, 3D printers and workstations, which will help startups develop prototypes at a rapid pace.
“The objective is to create new and innovative products in consumer electronics, especially in IoT, robotics and wearables.

It is meant to help drive up the ‘Make in India’ and ‘Design in India’ campaigns for electronics, which is currently a huge import burden for the country,” said Electronics Incubator consultant Prof S Rajeev.

Union Budget 2016-17 taking the Digital Agenda ahead
Source: VAR India; March 2, 2016

The much anticipated Union Budget 2016-17 has outlined a positive structure for infrastructure, education and agricultural segment which simply indicates the government’s move towards Digitalization mission and creating skilled employees across the country. Though there has not been much in store for start-ups and the India Inc, women entrepreneurs will have good to time to kick off their business journeys. In the networking segment, Routers, broadband modems, set top boxes, Digital video recorder and CCTV cameras will become cheaper which signifies that the IT hardware industry will get a big boost in these lines.

M N Vidyashankar, President – India Electronics And Semiconductor Association
“Government has shown great intent in promoting the start-up ecosystem in India. With Government’s announcement to promote women entrepreneurship, and entrepreneurship in the SC/ST category, we will have an immense role to play along with MSME in making this initiative successful. We are honored with government’s trust on associations like IESA and look forward to work in tandem to realize this socially important goal……”

Vinay Shenoy, Chairman – India Electronics And Semiconductor Association
“Imports of assembled sub-systems like charger/adapter, battery and wired headsets/speakers for manufacture of mobile phone will cost 16.5% more due to withdrawal of Basic Customs Duty and Special Additional Duty. On the other hand, inputs, parts and components, subparts for manufacturing these and other electronics sub-systems have been reduced to 0%. Further, imports of populated Printed Circuit Boards will cost 2-4% more. Both these reflect a strong commitment to promote local value additions in electronics.”

Electronic Goods Imports Rise 15% To Rs. 2,25,600 Cr In 2014-15
Source: The Pioneer; March 3, 2016

Total import of electronics goods grew over 15 per cent to reach an estimated Rs2,25,600 crore in 2014-15 over the previous fiscal, Parliament was informed on Wednesday. “The total import of electronics goods during 2012-13, 2013-14 and 2014-15 (estimated) as per the figures of Directorate General of Commercial Intelligence and Statistics (DGCIS) was Rs1,79,000 crore, Rs1,95,900 crore and Rs2,25,600 crore, respectively,” Minister of Communications and IT Ravi Shankar Prasad said in a written reply to the Lok Sabha. He added that the total production of electronic goods based on figures provided by the respective Electronics Industry Associations was Rs1,64,172 crore, Rs1,80,454 crore and Rs1,90,366 crore during 2012-13, 2013-14 and 2014-15 (estimated), respectively. “The comparison of total production with import of electronic goods suggests that the indigenous production of electronic goods is not sufficient to meet the domestic demand,” he added. The Minister said the Government has taken steps to promote domestic research and development of electronic products in the country. An electronics development fund (EDF) has been set up as a ‘Fund of Funds’ to participate in professionally-managed ‘Daughter Funds’, which in turn will provide risk capital to companies in developing new technologies in electronics, nano-electronics and IT. “The EDF will also help attract venture funds, angel funds and seed funds towards R&D and innovation in the specified areas. It will help create a battery of daughter funds and fund managers who will be seeking good start-ups (potential winners) and selecting them based on professional considerations,” he said.

Mobile phone production rises to 11 crore in 2015-16, thanks to budget: Ravi Shankar Prasad
Source: Express Computer; March 3, 2016

In 2014-15, the mobile units manufactured in the country was 5.4 crore, which has more than doubled to 11 crore in 2015-16. After the duty rationalisation in the last budget, 16 new mobile manufacturing units have been set up in this financial year Mobile phone production in the country has more than doubled to 11 crore in 2015-16 on the back of duty rationalisation announced in the previous Budget, told Telecom Minister Ravi Shankar Prasad recently.The minister said 16 new mobile manufacturing units have been set up during the financial year. “In 2014-15, the mobile units manufactured in the country was 5.4 crore, which has more than doubled to 11 crore in 2015-16. After the duty rationalisation in the last budget, 16 new mobile manufacturing units have been set up in this financial year,” Prasad said during an media interaction. While applauding the reforms announced in the Budget for 2016-17, Prasad said due to the initiatives taken up in the last budget, especially duty rationalisation, there is a remarkable acceleration in field of electronics manufacturing.” Electronics manufacturing proposals worth Rs 1,20,294 crore were received till date, up from Rs 11,800 crore in June 2014, when the government came to power,” he said. Asked about what amount of proposals have been approved, the Minister said Rs 18,000 crore worth of proposals have been approved. The minister said the proposal of duty advantage of 8.5 per cent to domestic manufacturers of routers, broadband modems and set top boxes, digital video recorder and CCTV cameras among other products announced in the Union Budget, will give a boost to the telecom sector, which uses many of these products.

DeitY team wants State to act fast on Nokia
Source: The Hindu; March 3, 2016

The Fast Track TaskForce set up by the Department of Electronics and IT (DeitY) wants the Tamil Nadu government to come up with a suitable package to revive the Nokia facility at Sriperambudur, near Chennai. The team met State Industries Minister P Thangamani on Wednesday. “We want the Tamil Nadu government to come up with an action plan soon because in the last one year 35,000 jobs have been created in the mobile manufacturing space in India. If this facility was functional we could have created a substantial amount of job opportunities here too,” said Pankaj Mohindroo, national president, Indian Cellular Association (ICA), who is also the Chairman of the Fast Track TaskForce (FTTF). “We had a meeting today and we are hopeful the state would revert soon. We don’t want Tamil Nadu to miss the bus,” he added. Industries Minister Thangamani has informed the DeitY team that he would convene a meeting and would reach out to them soon. Officials from the Industries department could not be reached for comments. It’s been exactly one year since Prime Minister Narendra Modi announced that the Nokia Chennai plant would be revived. The Prime Minister had then said, “Let me assure you. We have started efforts in this direction (to reopen the unit). The result of this effort will be that in the coming days, Nokia plant should start functioning again and people will get employment.”

Nod for Internet of Things Policy
Source: The Hindu; March 3, 2016

The government at its Cabinet meeting held here on Wednesday, resolved to put in place Internet of Things (IoT) Policy 2016-20 to capture at least 10 per cent ($ 1.5 billion) of the Indian IoT market and eventually become an ‘IoT hub. The IoT policy was drafted keeping the Government of India (GoI)’s thrust on convergence of IT and electronics and an estimate that the global IoT sector will consist of almost 50 billion objects by 2020 and the market size touching $ 373 billion by 2020. Added to this is the GoI’s plan to develop 100 smart cities for which Rs.7,060 crore has been allocated in the current budget. The objectives of the IoT Policy of A.P, according to an official release, are to create direct employment to at least 50,000 persons in IoT verticals, promote 10 IoT hubs with private participation, attract 100 IoT companies/units/entities to set up their facilities and development centres and develop state-of-the-art IoT infrastructure-both physical and technical-in major towns. The IoT policy has been divided into five segments namely R&D, lab/assembly/systems integration, device and hardware manufacturing, software applications and analytics and IoT hubs/infrastructure. As far as allotment of land is concerned, the government has decided to provide land to entities that are in existence for at least a year, filed income tax returns in India or abroad for the last two years and possess firm commitment letters of at least 10 IoT companies.

DeitY helps Indian company develop CAS technology for set top boxes
Source: NetIndian; March 3, 2016

Funded by the Department of Electronics and Information Technology (DeitY) for promotion of electronics design and manufacturing in the country, an Indian company, ByDesign India Pvt. Ltd. of Bangalore, has successfully completed development of Conditional Access System (CAS) for Set Top Boxes (STBs) under a project.

An official press release said the development of CAS by ByDesign had enabled India to enter a niche market hitherto dominated by five big global companies.

The global STB market is estimated to be about 250 million STBs per annum and the CAS market is expected to be nearly $ 2 billion per annum.

The projected demand in India for completing the digitization of the broadcasting network is nearly 100 Million STBs, thereby signifying an attractive domestic market, it said.

ByDesign was selected and awarded the task for development and implementation of Indian Conditional Access System (iCASTM) in association with the Centre for Development of Advanced Computing (C-DAC) in November, 2014 with technical specifications that were the best in the world.

Andhra aims to become India’s IoT hub; approves first-of-its-kind policy
Source:; March 3, 2016

Andhra Pradesh Cabinet has approved the first-of-its-kind policy on Internet of Things (IoT) with the prime objective of turning the state into an IoT Hub by 2020 and achieve a sizeable share (at least 10 per cent) in its market in the country. The state government will promote setting up of 10 IoT hubs with active participation of the private sector and create 50,000 direct employment in different IoT verticals.

“Our aim is to attract at least 100 IoT companies/ entities to set up their operations and development centres in AP. We want to create a world-class eco system through the proposed hubs for the growth of IoT entities,” Minister for Information Technology Palle Raghunadha Reddy said. Briefing reporters about the Cabinet decisions, the IT Minister said the Centre was currently drafting a policy to create an IoT industry worth USD 15 billion by 2020.

“We want to position AP as the IoT Hub in the country and accordingly approved the IoT Policy 2016-20 to grab a market share of USD 1.5 billion by 2020. We will develop state-of-the-art IoT infrastructure both physical and technical that matches to international standards in all major towns of the state,” the IT Minister added. Research and Development, lab/assembly/systems integration, device and hardware manufacturing, software applications and analytics have been identified as different IoT segments.

Compiled by IESA Research

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