IESA WINWire Mar 26 - Apr 01, 2016
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Electronics manufacturing gets a Rs 6,000-crore push
Source: Business Standard; March 26, 2016

As the country vies for self reliance in electronic goods production, the Department of Electronics and Information Technology (DeitY) has so far approved proposals amounting to around Rs 6,155 crore under the Modified Special Incentive Package Scheme (M-SIPS). The scheme looks at providing financial incentives to private companies for setting up electronics manufacturing units. The government has given final as well as in-principle approval to 28 electronics manufacturing clusters (EMCs) and common facility centres (CFCs) across the country. According to a report by Deloitte Touche Tohmatsu released last year, the demand for electronics hardware in India is projected to grow $400 billion by 2020. However, by that time the estimated domestic production could rise to only $104 billion, while the rest has to be met through imports. The government in India, through various initiatives, is looking at reducing the dependence on electronic imports by promoting domestic manufacturing.

"Here the idea is to push more companies setup base in India to manufacture LED televisions, set-top boxes, automotive electronics, telecom equipment, RFID tags and labels among other things. Most of the equipment till now are not made in India but merely assembled. We hope that this would give a much needed push to the sector," said a senior official in the Ministry of Communications and Information Technology.

Internet of Things Could Bridge Rural and Urban India
Source: NDTV Gadgets; March 26, 2016

Some call it the fourth industrial revolution or "industry 4.0"; for others, the time when machines can "talk" at "smart" factories and "connected" homes to make your life better is here. But for India, Internet of Things (IoT) can bring a real revolution: empowering millions in rural areas and connecting "humans" to the mainstream.

A well-connected nation is the first step towards a well-served nation and, hence, connecting rural India to the IoT will provide the much-needed bridge between urban and rural India.

"It is a surefire way of channelling the benefits of a digital economy to the largest part of the country. IoT will enable delivery of education, health, governance and financial services to otherwise underserved areas," Oracle India managing director Shailender Kumar stressed.

For example, most patients in rural areas do not have access to specialists. Thus, several large hospitals in the metros are beginning to offer remote consulting services in rural villages using media-rich network capabilities.

"The doctors can see and interact with patients in remote telemedicine centres, with the case history and medical data automatically transmitted to the doctor for analysis. Similarly, the IoT technology can be leveraged to offer high-quality remote education in high schools across the country," Shailendra Kumar told IANS.

Manufacturing policy hinges on competence level of states: Amitabh Kant
Source: Mint; March 26, 2016

India may opt for different models of manufacturing rather than a uniform manufacturing policy applicable nationwide, said Amitabh Kant, chief executive officer at NITI Aayog, the successor to the Planning Commission. Kant, who was in the city to attend Mint’s Luxury Conference, said the country will have different models depending on the competence levels of states. “We are a very big country, we are bigger than 24 countries of Europe. You will have different models of manufacturing. States like Gujarat and Maharashtra must get into intelligent manufacturing—Manufacturing 4.0, or smart manufacturing. They must advance the envelope with the convergence of digital technology in manufacturing,” Kant said. However, in states such as Andhra Pradesh and Karnataka, the stress should be on labour-intensive sectors such as textiles, leather, gems and jewelry, he said.

“In the eastern part of India, the focus has to be on value-added agriculture and food processing. There is no reason why a state like Kerala should actually do manufacturing... Kerala is very good in the service sector—like tourism. So, every state, depending on its core competency, must excel; there must one area where it must be the No. 1 global player. And that is the ambition that every state must have,” he said.

Kant’s comments come at a time when Prime Minister Narendra Modi’s Make in India is promoting India as an important investment destination, a global hub for manufacturing, design and innovation.

What will it take to achieve IoT in India?
Source: The Times of India; March 28, 2016

Whether you work in Mumbai, visit Pondicherry or live in a small community in India, you could soon benefit from one of the greatest technological upheavals in human history – the Internet of Things (IoT). How someone living in India will experience a vast, emerging network of sensor-laden machines, things and human beings will dramatically differ from the rest of the world because India faces unique socio-economic challenges, poorly developed transportation infrastructure and easily available cellular networks. These factors are taking IoT down a more industrial and service-oriented track.With most of India’s population linked to agriculture in one way or another, it makes sense that both government and businesses would invest much of their IoT efforts on that industry. Imagine farmers deploying solar powered mouser and soil fertilizers or pest levels via mesh sensors connected via BLE to a gateway which is WiFi connected to Cloud applications which process data for better inform land management. Data will be processed while the farmer is fast asleep and update provided each morning. Imagine India with smart farming! As M.N. Vidyashankar, president of India Electronics & Semiconductor Association (IESA), writes: “Over 70 percent of India’s rural households are dependent on agriculture, and most of the techniques used in farming are archaic and vulnerable to the vagaries of nature. IoT might just be the answer to this sector’s needs, with applications including soil and plant monitoring, tracking of temperature and humidity, precision agriculture and more.”

Consumer electronics body forms separate council for mobile industry
Source: The Economic Times; March 28, 2016

Consumer Electronics and Appliances Manufacturers Association (CEAMA), the apex industry body for the consumer electronics and home appliances industry in India, has formed a formed a separate council for the mobile industry, including telecom equipment and mobile phone makers. The council in collaboration with other industry associations will present an industry consensus view to the government on crucial issues pertaining to the growth and development of the Indian mobility industry. It will also support the government's initiative to promote manufacturing in India. CEAMA president and Panasonic India and South Asia managing director Manish Sharma said the local component ecosystem is still not fully in place, resulting into dependency on international machineries and mechanisms. "Therefore, the industry should be given an opportunity to build the ecosystem and encourage initiatives being taken in this area. We believe the new mobile and communication council will appropriately connect and able to propagate the recommendations of industry players to government and policy makers," he said.

The council is also pressing the need to the government to withdraw the basic customs duty, countervailing duty and special additional duty levied on charger, adapter, battery and wired headsets/speakers in the recent union budget. At present the domestic mobile manufacturer pays 29% as customs duty on these accessories and 2% levy in respect of populated PCBs, whereas on the other hand importers of mobile CBU have to pay only 12.5% on the same inputs. The above items constitute about 10% to 30% ..

Make in India gets new DPP boost: Defence Expo will display what India can do, says Manohar Parrikar
Source: The Economic Times; March 28, 2016

Inaugurating the Defence Expo 2016, Defence Minister Manohar Parrikar on Monday said, "The new Defence Procurement Procedure (DPP) has been put up on the Defence Ministry website today morning. This DPP can help India in achieving a good defence industry network, for its own needs and exports. "Government is proactive in promoting 'Make in India'. Startup India can be a big contributor in the defence sector." Parrikar said. "With the new DPP, we have ensured that transparency is greater and clearances are faster," he pitched, inviting industry to participate in the sector in a big way. "This Defence Expo will display to the world, what India can do. The participation at Defence Expo has been beyond our expectations," he added. Earlier, MoS Defence Rao Inderjit Singh said, "All countries look to defend their frontiers and those that provide equipment have set up robust manufacturing basis in their respective countries. India has still not been able to achieve what developed countries have in terms of industrial revolution and manufacturing."

"Going forward, we hope to not only manufacture in India, but also design and develop in India for the defence sector," Singh said. "I request industries to work out a model in which 'Make in India' happens in the defence sector, with special focus on design and development. We hope to offer a level playing field. We hope that India will become a big exporter for defence equipment," he added.

What awaits India’s IT spending
Source: Infotech Lead; March 30, 2016

IT and software companies operating in India feel so much encouraged with the current government’s Start-up India, Smart City, Digital India and Make in India missions. However, results of recent research reports indicate that India’s IT spending growth would slow slightly this year, but would rebound from next year. Gartner forecasts India’s IT spending to grow 7.2 percent annually, to reach $72.3 billion in 2016. IDC forecast is a bit more optimistic compared to Gartner, with the estimated growth rate at 8 percent. However, it is down from 13 percent growth achieved in 2015. Major technology companies: IBM, Cisco Systems, Dell, HPE, Oracle, Huawei, Juniper Networks, Brocade Communications, among others, will benefit from the growth in India’s IT spending. Gartner says spending on Internet of Things (IoT) hardware will exceed $2.5 million every minute in 2016. Connectivity of the rural area is one of the visions of the government under its Digital India initiative. If the BJP government initiatives prove fruitful, then the rural-urban gap would be bridged, enhancing the economy. It seems Google has taken initiatives on this part with its balloon-based Internet technology Project Loon plans. News reports were out that the internet giant is in talks with local telecommunications providers. The research firm says data center systems will grow 3.9 percent in 2016, with most of this growth coming from enterprise network equipment and servers that will grow at 5.9 percent and 5.3 percent, respectively.

Chhattisgarh woos investments in defence sector
Source: The Times of India; March 30, 2016

Chhattisgarh industries minister Amar Agarwal participated in Global Investors Summit Make in India for Defence Sector Defexpo 2016 in Goa to woo defence investments to state. At an event organized by ASSOCHAM and Chhattisgarh government, high profile speakers and top management of global defence companies participated. State industry minister briefed about state and shared his vision for industrial development and investment opportunities in defence sector in Chhattisgarh. Throwing light on specific reasons to do business in Chhattisgarh, the minister elaborated on state's commitment to support and develop industries in sunrise sectors like defence manufacturing, heavy engineering, railways, electronics and information technology. He also invited corporates across globe to visit and witness the industrial environment. Led by industries minister, the delegation comprised of CSIDC chairman Chhagan Lal Mundra, industries secretary Subodh Kumar Singh, director industries Kartikeya Goel and CSIDC managing director Sunil Kumar Mishra. The delegation had detailed one to one meetings with senior executives of six companies and two business delegations of defence manufacturing companies. The state delegation also visited Defexpo in which nearly 1,000 companies participated from 47 countries which include Australia, Brazil, Canada, Egypt, Finland, France, Germany, Israel, Japan, Russia, Sweden, UK, USA and others.

Tech institute signs MoU with NIT-Silchar
Source: The Times of India; March 30, 2016

In a bid to promote skill upgradation and create job avenues in the region, the National Institute of Electronics & Information Technology (NIELIT) recently signed an MoU with NIT-Silchar, boosting ties between the two leading institutions. The MoU was signed between NIELIT (Guwahati) director K Baruah and NIT-Silchar registrar AK Barbhuiyan. As part of the MoU, NIELIT will provide skill development training in niche areas to local youths in the non-formal sector. The institute will conduct courses in the field of electronics sector design manufacturing. NIT-Silchar will provide the basic facilities to NIELIT to fulfil the objective. NIELIT director general Ashwini Kumar Sharma said that in the recent past, the thrust of the centre's department of electronics and information technology has been on developing IT capacity-building projects for government employees. Requisite steps will now be taken for the northeast. NV Deshpande, director of NIT-Silchar, said the efforts put in by NIELIT and the support of NIT-Silchar will assist skill enhancement of the youth of the state and will, in turn, enhance employability. K Baruah, director of NIELIT-Guwahati, lauded the state government for granting land free-of-cost at all locations to set up permanent campuses of NIELIT.

Private defence firms keen on Make in India
Source: mint; March 30, 2016

Domestic telecom equipment maker Himachal Futuristic Communications Ltd (HFCL) is known for two things: in the late 1990s, it made outrageous bids for telecom licences and later on it had its share of run-ins with the capital markets regulator for its suspected involvement in rigging share prices in a case dating back to 1999-2001. But that’s the past and it’s makeover time as the company, with revenue of Rs.2,553 crore in 2014-15, has won government licences to design, develop and manufacture aircraft and unmanned aerial vehicles. HFCL is just one of the private firms eyeing defence projects. Between January 2001 and February 2016, the commerce ministry has granted 333 industrial licences to private firms for defence manufacturing, according to data on the department of industrial policy and promotion (DIPP) website. They include Micronel Global Engineers Pvt. Ltd, Marine Electrical (I) Pvt. Ltd, Defsys Solutions Pvt. Ltd, Naistoco India Pvt. Ltd, Comint Systems and Solutions Pvt. Ltd, Ananth Technologies Ltd, DCX Cable Assemblies Pvt. Ltd and OIS Advanced Technology Pvt. Ltd.

There are more familiar names too: Tebma Shipyards Ltd, Premier Explosives Ltd, Titagarh Wagons Ltd, Taneja Aerospace and Aviation Ltd, Punj Lloyd Aviation Ltd, Dynamatic Technologies Ltd, Bharati Shipyard Ltd, Ashok Leyland Defence Systems Ltd and AMW Motors Ltd.

And then there are big, established ones such as Bharat Forge Ltd (BFL), Reliance Industries Ltd (RIL), Tata group, Larsen and Toubro Ltd (L&T), Godrej Group and the Mahindra Group.

Foxconn agrees to buy Sharp Corp at $3.5 billion; slashing initial offer of $900 million
Source: IBN Live; March 31, 2016

Taiwan's Foxconn agreed to acquire Japan's Sharp Corp at a big discount to its original offer, capping a month of wrangling that sowed more doubt over whether the two companies can work well together and fend off fierce competition from rivals. Foxconn, formally known as Hon Hai Precision Industry Co, will pay about $3.5 billion for a two-thirds stake, cutting its initial offer by nearly $900 million following the emergence of previously undisclosed liabilities at Sharp. The deal marks the largest acquisition by a foreign company in Japan's insular tech industry and the end of independence for a 100-year-old company that started out making belt buckles and mechanical pencils. It also gives the world's top electronics contract manufacturer control of Sharp's advanced screen technology which it does not have, and helps strengthen its pricing power with major client Apple Inc. Under the revised terms, Foxconn will pay 88 yen per Sharp share, the companies said in a statement, a 35 percent discount to Wednesday's close and likely reflecting in part Chinese obsession with the lucky number eight.

Foxconn has also agreed to buy all 200 billion yen ($1.7 billion) worth of preferred shares owned by Sharp's two main creditor banks, a source familiar with the matter said on Wednesday.

It also has the option of increasing its stake in Sharp next year.

The firms had been on the verge of finalising terms last month when contingent liabilities at Sharp were suddenly revealed, causing Foxconn to hit the pause button on the deal.

Digital India, a $1 trillion business opportunity: Prasad
Source: India Today; March 31, 2016

The government's Digital India initiative is a $1 trillion business opportunity across IT and IT-enabled services, telecom and electronics manufacturing, Communications Minister Ravi Shankar Prasad said here on Wednesday.

"Nearly $400 billion will be added from the electronics manufacturing, including mobile phones, solar panels etc., while $350 billion opportunity will be presented by the IT and ITeS sector," the minister said at the inauguration of FICCI-Frames 2016 Media & Entertainment Industry Conclave.

"The aspirational urge of Indians is driving the digital world in a phenomenal way. And the government's job is to create an enabling eco-system for its growth," he said.

"If industry needs more policy initiatives, the government is open to it," he added.

Internet penetration has reached 400 million in India, 60 per cent of it being mobile internet.

He also said India with one billion mobile phone connections has overtaken the US to become the second largest mobile phone market in the world behind China.

India, Belgium pitch for resumption of FTA talks 
Source: Zee News India; March 31, 2016

India and Belgium Tuesday pitched for resumption of the long stalled negotiations on the proposed India-EU free trade agreement (FTA) on "mutually agreed terms" as Prime Minister Narendra Modi and his counterpart Charles Michel resolved to strengthen their bilateral ties.

During their meeting here today, both leaders committed to strengthen the economic engagement by diversifying the bilateral trade basket and expanding investment ties.

"They agreed on the need to tap into the full potential of the EU-India strategic partnership and looked forward to the resumption of negotiations on the India-EU Broad-based Trade and Investment Agreement (BTIA) on mutually-agreed terms," a joint statement issued after meeting of the two leaders said.

Belgium is the member of the 28-nation European Union (EU).

The negotiations for the free trade pact, officially dubbed as BTIA, have been held up since May 2013 as both the sides are yet to bridge substantial gaps on crucial issues, including data security status for the IT sector.

Although senior officials from both the sides have met twice in the last two months on the issue, no date has been finalised yet for the next round of talks.

Belgium is India's second largest trade partner in goods in the EU and India is the Belgium's second largest export destination outside the EU.

A digitized India is an inevitability, is the verdict at FICCI Frames 2016
Source: Best Media Info; March 31, 2016

Union minister for Communications and Information Technology, Ravi Shanker Prasad, said on Wednesday that the Digital India and Make in India initiatives of the Union government were going to prove game changers for the media and entertainment industry. Digital, he saidat the 17th edition of Ficci Frames in Mumbai, was the enabler while content was the driver of the digital transformation taking place in India.

Prasad said Indians first watched technology, then used it gradually, before adopting it wholeheartedly. The time taken by an Indian to adapt to the digital medium may be long, but would be a surety, propelled by government initiatives.

Digital India, the minister said, had a huge potential and would be worth $1 trillion in the next five or six years. Of the trillion dollars, $400 billion would come from the electronics industry, $350 billion would come from IT and related services and the remaining $250 billion would come from the communications sector. Digital India, therefore, had a huge potential, he said.

Analog Devices Launches Anveshan 2016 IoT Design Fellowship Program
Source: PR News wire; March 22, 2016

Analog Devices, Inc. today announced the start of its biennial 'Anveshan 2016 Design Fellowship Program.' This year, the program is focused on the rapidly growing and evolving Internet of Things (IoT) space, and for the first time extends beyond the engineering student community, to encompass the entire ecosystem. This includes IoT startups, makers, hobbyists and entrepreneurs.

Participate in Anveshan 2016 by registering at:

The Anveshan Design Fellowship Program provides a platform to create and experiment with innovative IoT applications, develop sensor-to-cloud prototypes, experiment and innovate with key technologies such as energy harvesting and IoT connectivity, develop breakthrough concepts and algorithms for IoT use cases, and experiment with IoT platforms with analytics running on the edge, fog or cloud. Anveshan gives participants an opportunity to showcase their innovation by designing and architecting a complete innovative IoT product, core technology, algorithm or an IoT service in a low-risk setting with funding and guidance provided by Analog Devices.

Compiled by IESA Research

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