IESA WINWire May 07 - Apr 13, 2016
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11th Anniversary

Infra building can drive manufacturing growth: Niti Aayog CEO
Source: IANS; May 7, 2016

Terming progress made in expanding India's roads and railways networks the best ever in the last two years, Niti Aayog chief executive Amitabh Kant said on Friday that infrastructure construction can drive manufacturing growth in the country.

"Infrastructure construction can drive manufacturing growth and India must be an easy and simple place to do business," he said at an event here organised by the Confederation of Indian Industry (CII).

He also said that of the 344 procedures under the government's ease of doing business initiative, as many as 148 related to the micro, small and medium enterprises sector.

Identifying textiles, footwear, food processing and gems and jewelry as among the sectors fertile for employment creation, Department of Industrial Policy and Promotion Secretary Ramesh Abhishek said: "Reforms in ease of doing business will be a game changer for lowering manufacturing transaction costs."

Germany offers India deal for next generation submarines
Source: The Economic Times; May 7, 2016

In a departure from its traditional approach to business in India, Germany is for the first time offering a military deal under the government-government umbrella for its new-generation conventional submarines that have exceptional underwater endurance. While in the past the German government had kept away from contracts being bagged by its arms industries in India, the HDW 214 submarines are being offered as a special case for Indian Navy's requirement of six boats, which are to be made in India at an estimated cost of over Rs 60,000 crore. Sources told ET that the formal proposal is being shared with the defence ministry in which the German government will give assurances on fair price, technology transfer and quality. Russian and French submarines are, too, competing for the mega P 75I project, which is likely to see a private sector yard in India carry out a major chunk of the work. India will be mandating Air Independent Propulsion (AIP) - a technology that enables the submarine to remain underwater for several days at a stretch instead of coming up to surface frequently to replenish oxygen needed to burn the fuel — for the submarines.

"The offer has certain assurances that the product will meet Indian requirements," an official involved in the process told ET. Russia, which is developing its own AIP system, has already advised India to conclude the P 75I project under a government deal as it has too many complexities of technology transfer.

Parliamentary panel asks I&B min to help Indian set top box producers
Source: The Economic Times; May 8, 2016

A Parliamentary panel has asked the Information and Broadcasting Ministry to consider the issue of long-term financial support to Indian manufacturers of Set Top Boxes to help them face competition from Chinese companies. The Digitisation of Cable TV sector was initiated by the previous UPA government to phase out analog TV distribution system for offering varied choice to viewers and better quality viewing. As lakhs of Set Top Boxes were seeded (installed in houses) under this drive in the first three phases, including in all major cities, it was realised that a majority of STBs being were imported. In a report tabled in Parliament earlier this week, the Standing Committee on Information Technology noted that as per information given by Consumer Electronics and Appliances Manufacturers Association (CEAMA), 19 companies are indigenously manufacturing STBs and they have sufficient capacity to meet the demand of cable TV digitisation.

"CEAMA has also informed that they can even scale up the capacity if there is a demand but for that there is need of Government support in creating a level playing field for domestic STB manufacturers to compete with the Chinese imported STBs," the panel said in its report.

India is at the tipping point of a digital revolution: Ravi Shankar Prasad
Source: The Hindu Business line; May 8, 2016

As Minister, my first priority was to change the profile of the Communications & IT Ministry, as it was known for all the wrong reasons (2G scam). The second priority was to ensure positive growth. The third was to turn around loss-making public sector units. The fourth was leveraging the wide postal network, the fifth was to push electronic manufacturing, and the sixth was to settle all long-pending policy issues. I would like my two years to be known for these benchmarks.

Today, Sanchar Bhawan is free from middlemen, there is no scam or scandal, and decisions are taken in a free and fair manner. We had the highest spectrum auction ever of ₹1.10 lakh crore (last year).

All the policy initiatives pending for the past 7-10 years — defence band identification, spectrum trading-sharing, harmonisation, liberalisation, cloud policies, open source in IT and creating an ecosystem of sound investment — are in place. As a result, IT and IT-enabled exports today are worth $108 billion, the highest ever in the history of India.

India has received $4,091 million (over ₹26,000 crore) foreign direct investment in telecom. Mobile telephony has shown growth. The postal sector had tremendous growth of ₹122.66 million between April 2014 and February 2016.

Kochi gets Rs.194 cr. under Smart Cities Mission
Source: The Hindu; May 8, 2016

With the Centre sanctioning Rs. 194 crore on Friday for Kochi under Smart Cities Mission, the Special Purpose Vehicle (SPV) to oversee its implementation is expected to float the first tender on June 25. The city’s central business district and West Kochi would get a total of Rs. 2,057 crore under the Mission for urban rejuvenation, aimed at improving quality of life by 2020. “June 25 is the first anniversary of Prime Minister Narendra Modi announcing the Mission. Priority has been given to waste management, rejuvenation of waterbodies, improving/building pedestrian walkways and cycle tracks,” A. P. M. Mohammed Hanish, Secretary of Local Self-Government (Urban) and the State’s Mission Director said. The works are expected to kick off from July. A master consultant is currently engaged in finalising the project components for Kochi and the Detailed Project Report (DPR) is expected to be ready by early June, he added. The other key components for Kochi’s urban rejuvenation are making available tapped water supply, redesign of streets and laying of ducts, disabled-friendly public spaces, redevelopment of railway stations, augmenting water transport, introduction of e-rickshaws/electric vehicles for last mile connectivity, creating and managing open spaces, integrating different commuting modes and enabling seamless connectivity among them, seamless Wi Fi connectivity, tapping renewable-energy sources, smart lighting, improving security through CCTV surveillance, waterfront development and development of markets.

Indian Defence vendors to earn Rs 1,15248 cr more this year
Source: The Hitavada; May 8, 2016,15248-cr-more-this-yr.aspx

Implementation of ‘Make in India’ project by Government of India in Defence sector has increased the business of Indian Defence Vendors and also strengthened the economy by Rs 1,152.48 crore this year as compared to 2015. According to a written replay by Minister of State for Defence Rao Inderjit Singh to K Parasuraman in Lok Sabha on Friday, The Defence Procurement Procedure (DPP) 2016 provided strong support to ‘Make in India’ by according highest priority to Buy (Indian-IDDM) that is Indigenous Designed, Developed and Manufactured category. It also focused on enhancement and rationalisation of indigenous content and has provisions for involving private industry as production agencies and technology transfer partners. The ‘Make’ procedure has also been simplified with provisions for earmarking projects not exceeding development cost of Rs 10 crore (Government funded) and Rs 3 crore (industry funded) for MSMEs, Singh added. With this bold initiative, the total expenditure on purchase of Defence equipment for the three services in 2015-16 is Rs 76,169.57 crore in which the procurement from Indian vendors is Rs 49,979.11 crore and from foreign vendors it is Rs 26,190.46.

Hyderabad can breed quality startups
Source: The Hans India; May 8, 2016

Lately, India has become a hot bed for startups and entrepreneurs. Huge amount of money is being pumped into startups from all corners and now the government support has brought in a fresh air to the thriving ecosystem. The number of active investors, both angels and venture capitalists, has grown significantly in the last two years. This growth in the angel investing activity, led by high-networth individuals, isn’t unusual given that the country’s startup funding market has grown exponentially over the past few years. First-generation entrepreneurs invest in startups for mainly two reasons – they have a passion for startups and they want to give back the learning they have received in their entrepreneurial journey so far. Many of them have finished their cycle of investments in their ventures and understand the power and value of entrepreneurship. Therefore, they are increasingly engaging with startups and investing in them. With the growing startup ecosystem in the country, the trend is here to stay for some time.

While VC investors bring a degree of stability and the ability to invest large amount of money in later rounds, angel investor brings in the perspective on scalability, business operations and mentorship. VC firms focused on seed-stage funding are beginning to bring in financing in sizeable numbers, too. These seed funds are backed by institutional investors and normally enter after a business has raised angel funding.

Shift in CM business models yield higher profit for OEMS
Source: EET India; May 9, 2016

Traditionally, contract manufacturers (CMs) are companies that create products as specified by the OEM. However, their roles have changed remarkably in the recent years to develop advanced technology and manage supply chains for some of the leading global companies. OEMs are increasingly turning to integrated manufacturing solutions (IMS) partners to design, manufacture, ship and repair virtually all products they market. There are a number of factors driving this shift. First, because some IMS companies have specialised in the production of certain types of equipment for many years, they have developed substantial design and technology expertise. And second, the global footprints and supply chains of IMS companies are often more extensive than those of OEM's. In addition, the shift towards end-to-end outsourcing is also enabling OEMs to improve profitability by changing traditional business models. Rather than investing in facilities, capital equipment, core technology development and business processes such as supply chain management, companies collaborate with IMS providers to manage these aspects of their business so they can focus resources on the development of unique products, IP and services that are the core of their business model.

Long term policy focus for leveraging our manufacturing strengths in electronics: DeitY
Source: VoicenData; May 9, 2016

With a view to encourage electronic units to make in India, the government is contemplating a three pronged approach which would help the sector ascend on the accelerated path of promoting growth in this sector. The first prong entails a shift towards a long term policy horizon so that the policy path is known and the end user has clarity in what is in store for the industry. Secondly, the taxation regime is being made stable, which entails putting in place a grandfathering clause to bring clarity to the system and thirdly all support schemes are being put in place to help us leapfrog to higher echelons of growth. This was stated by Dr Aruna Sharma, Secretary, DeitY, during the Conference on Championing Manufacturing in India, in the session on ICTE , organised by CII. According to Dr. Sharma, while electronics manufacturing has an advantage of a large consumer base, we have fallen behind while developing a competitive advantage in the production of components, which remains a challenge. The government is planning to address the challenge by looking into the differential tax system across the sector, promoting innovation and research, and building local capacity for components production.

Commenting on the three specific segments viz mobile, LED and PCB, Dr Sharma mentioned that at a time when our country has an advantage in low end manufacturing, the government is promoting the segment by hastening a shift towards smart phones. India is keen on leveraging the analogue technology, in which we have a comparative advantage, to create a global footprint in the area of electronics. Similarly, all concessions would be provided for the development of the PCB and LED industry. Medical and Automotive electronics are other focus areas with growing opportunities for which significant research is happening at IITs, said Dr Sharma.

Mouser Extends Credit Card Payment Options to Include Rupees for Customers in India
Source: Press Release; May 9, 2016

Mouser Electronics, Inc. today announced that its highly valued customers in India can now use credit cards online in not only U.S. dollars (USD) but also Indian rupees (INR) to purchase any of the over 4 million verified components on the Mouser website for their newest design projects. Mouser is committed to providing customer service excellence, order accuracy, and quick delivery, and this new payment option will help customers in India quickly and easily complete their transactions.

As the global authorized distributor with the newest semiconductors and electronic components, Mouser provides design engineers and buyers around the world with the easiest access to the newest products and comprehensive design resources. With real-time availability 24 hours a day, 7 days a week, the site's many resources — including advanced search functions, Applications and Technologies sites, and inventory tools — offer unique capabilities that help engineers select, purchase, and design the next great thing using genuine parts from over 600 manufacturers.

With both a robust website and a local customer service center in Bangalore that can process credit card payments in Indian rupees, Mouser is uniquely positioned to offer world-class service and high-quality, authorized products to design engineers and buyers across India.

Made-in-India mobiles and gadgets is our focus: Aruna Sharma, Secretary, Dept of electronics and IT
Source: The Economic Times; May 10, 2016

The country may have missed the bus on setting up semiconductor chip manufacturing fabrication units, but it is now trying to make up for the loss by focussing on analogue and solar fabrication units, says Aruna Sharma, secretary, department of electronics and information technology. In her first interview after taking charge of the department, Sharma talks to ET about her vision for 'Digital India' and the push on electronics manufacturing. Unfortunately our manufacturers have become traders, because it was easier to import and distribute. Slowly, we have to bring in a change. The government has very good incentive schemes. Under the MSIPS policy, hand-holding is by assistance of nearly 25%. The response is very encouraging. In MSIPS, around 80 proposals are already cleared and another 70 are in the pipeline. In electronics development fund, four cases are already operational and six more are in the pipeline. Expansion in mobile and other electronic goods manufacturing is now our focus. We have success stories in LED and mobile manufacture. Auto sector and medical electronics is the next zone with great potential for growth.

Whenever there is a solid proposal, we immediately take it up after ensuring the requisite procedure is followed, because the policy is already in place. We have to encourage fab manufacturing. It is also important for the sector to think of chip manufacture in not just digital but also for analogue and solar. There is also a case to focus on PCB manufacturing.

Make in India: GM India plans to double exports from India
Source: Financial Express; May 10, 2016

General Motors India on Monday said that it is looking at more than doubling its exports in the current year and its Talegaon facility will become the export hub for the auto major in the country. GM India which exported 21,000 units in 2015 is eyeing a number of 50,000 in 2016. On Monday the company also rolled out the first vehicle meant for shipment to Argentina which is its sixth major export market. GM India exports its left hand driven Beat model to countries including Mexico, Chile, Peru, Central American and Caribbean Countries (CAC) and Uruguay. The Chevrolet Beat recorded the highest growth for any passenger vehicle exported from India and became the sixth most exported passenger vehicle out of India during financial year 2015-16, with a total of 37,082 units, GM India said in a statement here. “The new export market is a testimony to our commitment to provide the quality standards to global customers from the Talegaon plant. Whether it is in India or anywhere else in the world, General Motors follows the quality standards in its manufacturing processes providing same high quality vehicles that customers in India and around the world expect and deserve,” GM India president and MD Kaher Kazem said.

The Beat, badged as Spark outside India, is available in more than 70 markets worldwide and has sold over 1 million units. The Beat is produced at GM India’s manufacturing facility in Talegaon, Maharashtra, which has a base capacity of 130,000 vehicles. GM India began vehicle exports from India to Chile in September 2014.

Foxconn To Manufacture ‘Made in India’ iPhones in Maharashtra With $10B Investment
Source:; May 11, 2016

Foxconn, Taiwan based contract electronics manufacturer, and chief supplier of Apple has chosen Maharashtra to manufacture their ‘Made in India’ iPhones. As per reports coming in, Foxconn will spend $10 billion to create a massive manufacturing plant, which would be spread across 1200 acres. Reportedly, Foxconn has finalized the location of this plant as well, and they are waiting for final Govt. approval before announcing this mega-deal. Last year, we had speculated that iPhones would be soon manufactured in India by Foxconn, but later no concrete news came out of this. However, this development is almost confirmed now. It will take around 18 months to ship out the first iPhone from this facility, and Foxconn will only manufacture Apple products here. This location in Maharashtra was chosen after considering several states for the location. In August last year, Foxconn had committed $5 billion investment in Maharashtra over the next 5 years. With this recent iPhone facility, total investment promised by Foxconn in Maharashtra alone has swelled to $15 billion (Rs 1,00,000 crore) which is phenomenal to say the least.

As far as India is concerned, this can be a described as a huge coup, a new beginning, as Foxconn had traditionally chosen China for manufacturing Apple products since long. However, with the emergence of ‘Make in India’ program by PM Modi led BJP Govt., India has received attention from all over the world, especially from the manufacturing sector; and this decision by Apple & Foxconn to start manufacturing in India is yet another victory for India.

2nd Smart Cities India 2016 Expo Attracts 325 Exhibitors from 40 Countries
Source: Newsnow; May 11, 2016

The 2nd edition of Smart Cities India 2016 opened today at Pragati Maidan, New Delhi. The international knowledge platform for smart cities was inaugurated by Shri Suresh Prabhakar Prabhu, Cabinet Minister, Government of India, Ministry of Railways and Shri Piyush Goyal, Minster of State, Government of India, Independent charge for Power, Coal, New & Renewable energy. Shri Suresh Prabhakar Prabhu, Cabinet Minister, Government of India, Ministry of Railways stated: “Transport plays the role of lifeline in a smart city and hence soon India will see new railway stations made with impeccable design and friendly human interface. Special attention needs to be paid to management of natural resources so that the ecological balance is not tampered.” Guest of Honour at the event, Shri Piyush Goyal, Minster of State, Government of India, Independent charge for Power, Coal, New & Renewable energy, said: “India sure has challenges, but in those challenges lies the unparalleled opportunities. A land that has enormous amount of manpower, and youth seeking better lifestyle provides the urging need of smart cities. Smarter solutions need to be scalable, affordable and fast in their implementation so that the country drives benefit from them.”

Ford Motor eyes global technology and business centre in Chennai
Source: Business Standard; May 12, 2016

Following the footsteps of Nissan, Mahindra and other original equipment manufacturers (OEMs), Ford Motor is planning to set up a new global technology and business centre in Chennai. It would be spread across 28 acres housing a R&D and product testing centre. The firm has invested around $2 billion in India.

While industry sources said the investment would be around Rs 2,500 crore, Ford's spokesperson refused to share details.

In an e-mail, the spokesperson said, "We would share details of the engagement at an appropriate time and add nothing to the speculations of investment figures". Ford already has an investment to the tune of $2 billion in India.

The firm's proposal got a nod from the Board of Approvals for special economic zones (SEZs) under the Ministry of Commerce recently.

According to the proposal, Ford Motor will be a co-developer in the sector specific SEZ of information technology/information technology enabled service (IT/ITES) at Sholinganallur village in Tamil Nadu, developed by Electronics Corporation of Tamil Nadu (ELCOT)..

Compiled by IESA Research

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