Please click here if you are not able to view this emailer
  IESA WINWire Aug 12, 2017 - Aug 18, 2017 for Subscription click here  
12th Anniversary

Hyderabad Becoming Aerospace And Defence Industry Hub
Source: Business Standard; August 13, 2017

The establishment of India's first private sector missile manufacturing facility here is seen as another feather in the cap of the Telangana capital, which has emerged as a key hub of the aerospace and defence industry.

Industry leaders say the city has become the ground for implementing the Make in India initiative as several global giants have joined hands with the Indian players to set up manufacturing units.

Kalyani Rafael Advanced Systems (KRAS), a joint venture between Israel's Rafael and Kalyani Strategic Systems, will produce the third generation Spike anti-tank guided missile (ATGM) for the Indian Army. The state-of-the-art facility has come up under what is described as the biggest ever Foreign Direct Investment (FDI) in defence.

Spike joins a long list of aerospace and defence products being manufactured in Hyderabad, including the cabins of the helicopters that fly the US president and F-16 fighter jets.

According to Baba N. Kalyani, chairman, Kalyani Group, the initial orders for the Spike missiles from Indian Army will be in thousands and valued about $1 billion.

The facility is planned to be developed into missile house of India with Israeli defence firm also proposing to manufacture some other missiles. KRAS chooses Hyderabad as it is considered as the missile centre of India with several public-sector defence labs and missile manufacturing facilities located here. "With centres like missile manufacturing and R&D centres Hyderabad becomes a natural eco-system for anyone who gets into this space," Baba Kalyani explained.

Bihar Set To Reboot Its Tech Policy
Source: The Economic Times; August 14, 2017

Bihar is planning to come up with a new IT policy that will focus on promoting technology-oriented companies to set up base and invest in the state’s technology and electronics manufacturing sector. Bihar’s IT secretary Rahul Singh told ET that the state government is working on the draft of the information technology, IT-enabled services (ITeS) and electronics manufacturing investment policy strategy. “We are trying to understand what the industry is looking for in terms of help with incentives, clearances or support,” he said. He added that Bihar is undertaking a huge outreach effort to familiarise itself and the companies about the state’s potential. On Friday, Singh met around 35 senior industry captains at a consultation organised by the state’s IT department in association with industry body CII. Industry members included senior executives from companies such as TCSBSE 0.13 %, IBM, Cisco, HP India, Tech MahindraBSE 0.26 %, Softage, Tejas Networks etc.

“The uniform feedback that we have received is that incentives play a major role, but more important is the commitment of the state and the ecosystem available,” added Singh. He said work on the new policy has been going on for the past couple of months and the draft should be ready by the end of this month and that the policy is expected to be finalised by September.

Noida-Based Contract Manufacturer Dixon Plans Rs 700-Crore Ipo In September
Source: The Economic Times; August 14, 2017

Contract manufacturer Dixon Technologies plans to hit the capital markets in the first week of September for raising nearly Rs 700 crore through a public offer, which will make the Noida-based company the first Indian mobile phone producer to be listed since the launch of the ‘Make in India’ programme.

The company, which makes consumer electronics, home appliances, washing machines, mobile phones and lighting products for a number of brands including Panasonic, Phillips, Intex and Gionee, will channel the funds towards setting up a new plant for LED televisions and LED bulbs at Tirupati, paying off debt and getting into new businesses.

“We will get into backward integration for LED televisions with capacity of 1million a year, and LED lighting with capacity of 5 million a month including tubelights at the Tirupati plant, which will be used for exports,” said Sunil Vachani, chairman and managing director, Dixon.

“With the new plant, we will be the third largest manufacturers of LED bulbs globally with capacity of 10 million a month,” he added. Dixon will also enter into security systems, cameras, recorders and digital video recorders.

Tirupati will be the company’s seventh plant after three facilities each in Noida in Uttar Pradesh and Dehradun in Uttarakhand. The company, which got an approval from the Securities Exchange Board of India (Sebi) earlier this month, will raise fresh equity of Rs 60 crore through the offer.

Rise of Large Area & Flexible Microelectronics
Source: Financial Express; August 14, 2017

Large area microelectronics is a subdivision of electronics based on substantial integration of electronic elements on nebulous substrates, which normally engenders large-sized products with lengths that vary from a few centimetres as in sensors, to a few decimetres as in lighting and displays, to several meters as in panels based on organic solar cell technology. Flexible microelectronics, on the other hand, is a section of electronics dealing with miniature components. Large area and flexible electronics together form a promising branch of technology as they can incorporate intelligence to a number of objects. In the age of IoT/IoE, advanced manufacturing, energy efficiency and sustainability, large area and flexible electronics has a ground-breaking potential as it offers innovative product concepts that entail low energy consumption, low cost of production and eco-friendly materials.

The ever-increasing adoption of smart devices and internet usage is playing a key role in reinforcing the development of large area and flexible microelectronics technologies. The industry is witnessing a steady pace of innovation as the demand for energy-efficient and inexpensive smart devices that facilitate reliable and high-speed data connectivity is on the rise. Soon, technological advancements will boost the adoption of encapsulation technologies, near-field communication (NFC) technologies, wireless charging, organic LED display screens, and smart haptics to transform gadgets.

We've Funded 61 Startups in the Last 4 Months: Priyank Kharge
Source: The Times of India; August 14, 2017

The Karnataka government has funded 61 startups across sectors in the last four months, according to Priyank Kharge, Karnataka minister of IT, biotechnology and tourism.

"We are (sector) agnostic, we go by the idea," Kharge said while addressing the Open House organised by The Economic Times with the Karnataka government at WeWork Galaxy. "In the last four months, we have funded 61 companies. My startup policy allows me to fund anything from aerospace to agriculture." The Open House, which was jam packed with entrepreneurs from across sectors, was held as a run-up to the Startup Awards, which are due to take place on August 18.

The minister was at his eloquent best as he fielded a variety of questions ranging from the state's startup policies, tourism, egovernance to his success mantra. The government's recent startup initiative, ELEVATE 100, which aims to discover the 100 most innovative startups from across the state, is also gathering steam. Kharge's team is scouting startups from all over the state. "It has been a very tiring 15 days for my team who have been moving to all destinations, curating startups.Selected startups will get to present to a grand jury. The idea is to identify 100 most innovative companies to take them to the next level," he said.

"By next level, it is not just funding, not all startups need funding--it could be idea validation, mentorship, legal, trademark registration, IP.

India @70: India's startup movement is fast gaining momentum, says Amitabh Kant
Source: Economic Times; August 14, 2017

The current emphasis on startups by Indian society can be attributed to a couple of things: Firstly, the stories of successful startups are aspirational in terms of creating impact, wealth, or solving real problems that society faces at scale. Secondly, with the imminent rise of automated manufacturing and artificial intelligence (AI) and the need for reskilling our workforce for the rapidly changing future, startups can play a very important role in social mobility and making access to capital equitable.

Successful startup ecosystems can enable anyone with a sound business model and capacity to work hard to quickly accrue experience and wealth, and become job creators that others in turn can look up to. The Indian government has been making a synergistic effort across ministries and sectors to nurture innovation and startups. In January 2016, the Startup India movement was launched by the Prime Minister. The government has been working to ease regulations, reduce the compliance burden for startups, provide hands on support, as well as promote a culture of innovation so that more and more youngsters become entrepreneurs. A regime based on self-certification has been ushered in and states have actively participated.

Twenty-three states and Union territories have confirmed that startups can self-certify compliance for three years in respect of six labour laws in a fine example of Centrestate collaboration. Several startups have already been been facilitated in terms of financing, business structuring, marketing, etc.

Sweden to Become Key Destination for Indian IT Companies: NASSCOM
Source: BW CIO; August 14, 2017

As a part of its consistent endeavour to cultivate a collaborative global ecosystem, National Association of Software and Services Companies (NASSCOM), along with Business Sweden and Radar Ecosystem, has released a report - ‘Sweden a key driver of Nordic ICT growth’.

The report offers key driving areas that make Sweden as a potential IT hub, stating that the country is poised to emerge as potential market for the Indian IT-BPM sector.

The report finds that along with having a higher GDP growth compared to the European Union average, the Nordic countries consistently rank among the most business-friendly nations in the world. These countries are also ranked second in innovation globally.

The report infers that amongst all Nordic countries, Sweden has the highest GDP of $550 billion. With big technology names like Truecaller, Candy Crush, Skype and Spotify, Sweden is home to several notable companies.

In the report, Sweden has been identified as the country with 40 percent ($23 billion in 2016-17) of the total share of the Nordic IT spend. Just like Indian markets, the central market trend reflected in Sweden is the drive for digitisation. The country is fuelled by increased demand for IT and digitization across all other industries.

R Chandrashekhar, president, NASSCOM, said: “India and Sweden’s IT ecosystem have a mutual affinity for each other – with both the countries are at the threshold of digitisation, opening multiple opportunities for the countries to collaborate. This report will provide an impetus for IT employees and companies to broaden their horizons and opens its doors to new markets.”

Investments Key To Ensure Growth In The Country: Subba Rao
Source: Business Standard; August 15, 2017

Investments, especially in the manufacturing sector, is the key to ensure sustained growth in the country, former RBI Governor D Subba Rao has said.

"I am sure all of you have read about economic survey that was presented to the Parliament last week. What the economic survey said was that in a situation where you have such low real investment, low export volume, low credit growth, you cannot sustain seven plus per cent growth.

"So, if you ask me give a one word answer to what should be done to get India to continue to grow, I would say investment," he said.

Subba Rao was speaking at a meeting jointly organised last night by the Rotary Clubs of Hyderabad and the Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI). Investment and growth rate have a strong correlation, he said. "When we grew at nine plus per cent before the global financial crisis from 2003 to 2008, there was very high investment. Again after the crisis, growth dropped because investment dropped. Today, there is no investment taking place. So, unless investment is jacked up, it is difficult to accelerate growth," he said.

India holds great promise, at a time when advanced economies are struggling with low growth and deflation, but growth in the country is "not inevitable", he said. "Today, we are growing at seven plus per cent. But, that growth has a very narrow base...

Government Reviews It Imports From China
Source: The Times of India; August 16, 2017

The government has started a review of the massive import of electronics and information technology products from China due to concerns over security and data leakages. There has been a growing clamour for import restrictions and other curbs on such products, which currently constitute a huge chunk of shipments from across the border. The review comes at a time when the India-China standoff over Doklam has been intensifying, and may signal the onset of a strategic trade war as tension on the border worsens and concerns about trade imbalances and security increase.

The growing engagement of Chinese companies within India's burgeoning electronics and IT industry — worth nearly $22 billion, according to a recent study by industry chamber CII — has sounded alarm bells within the government, especially as it is felt that much of this can be used to gain unlawful access to critical information about individuals, businesses, and government set-ups.

"There are increasing concerns about the preparedness of the security apparatus, especially as there are fears that electronics, online trade platforms, and finished goods can be tapped into for procuring sensitive information," industry sources said. "Communication has already been sent to industry players for their views and assess their preparedness in protection of data and critical information." The Indian government's movement towards digitalisation of services and trade and the manifold increase in online transactions has also added to security concerns, which have reached the highest echelons of government.

Sistema to Set Up 100% Arm to Handhold Desi Startups
Source: ET Rise; August 16, 2017

Russia’s Sistema JSFC is deepening its engagement with Indian startups. The $10-billion Russian conglomerate will shortly float a wholly owned unit in India to offer hands-on business execution assistance to local startups in the ecommerce, financial technologies, digital analytics, etailing and lifestyle brands domains, two people aware of the matter said.

The new Sistema India subsidiary will “handhold local startups under its new Scalerator platform through a host of services, including go-to-market strategies, solutions to swiftly scale up business and even the support of a back-up operations team if needed,” one person told ET.

Legal formalities are currently under way for setting up the subsidiary, which will be registered in Singapore, he said. Sistema’s global venture capital team is in India to identify potential startups in Bengaluru, Chennai, Hyderabad and Kochi for lending support under its Scalerator initiative, the other person said.

The platform is aimed at helping startups scale up their businesses rapidly in a cost-efficient manner. Startups that sign up for the programme may qualify for financing from the Sistema Asia Fund, the Russian company’s proprietary VC fund, which will double its kitty for Indian ventures to $100 million by early-2018. At present, the fund typically offers financing to startups operating in the technology and consumer-tech domains. A Sistema Asia Fund spokesman declined to share details, saying “it’s too premature to comment on anything at this stage.”

Flood of Cheap Chinese Imports May Hurt India's Factories
Source: NDTV; August 16, 2017

A troop standoff along the border with China isn't the only worry for Indian policy makers. The weaker yuan is intensifying a flood of cheap Chinese goods into the country, threatening to hurt India's struggling factories and blow out its biggest bilateral trade deficit. So authorities should take steps to support domestic companies as well as curb gains in the rupee, said Soumya Kanti Ghosh, chief economic adviser at State Bank of India, the nation's biggest lender and one of its top currency traders. India must "reduce dependence on such frivolous Chinese imports," Ghosh said. Failing to do so would erode competitiveness at Indian companies and put at risk Prime Minister Narendra Modi's flagship 'Make in India' campaign, he said.

The comments follow years of U.S. threats to brand China a currency manipulator and come as Indian and Chinese soldiers face off in a remote area of the Himalayas. The risks to India's economy are more pronounced as a new national sales tax disrupts supply chains. Factory output contracted in June for the first time in four years, official data show, mirroring subdued private surveys. That stands to only burnish the appeal of inexpensive Chinese imports.

India mainly ships electronic products, engineering goods and chemicals from China, its biggest trading partner, with whom its trade deficit has ballooned nine-fold over the past decade to $49 billion in 2016. This figure was about $51 billion for the fiscal year through March 31, on imports of $61.3 billion.

Govt sends notices to Xiaomi, Apple, 19 others over hacking fears
Source:; August 16, 2017

About 21 smartphone makers, including China's Xiaomi, Gionee, Oppo and Vivo, have been issued notice by the government over hacking fears, according to a report in The Times of India.

Other companies that got notices from the Ministry of Electronics and Information Technology include Apple, Samsung and Micromax that have a substantial market share in India's thriving smartphone market.

The move comes as government fears these device makers, Chinese predominantly, are involved in stealing sensitive information from a user’s phone.

"The companies have been given time till August 28 to file compliance with the security norms. We may also conduct an audit to ensure that they are in compliance," an official was quoted as saying in the report.

Indian device maker Micromax also features on the list of the 21 companies which were served notice by the Ministry of Electronics and Information Technology.

The step comes on the back of several reports in the media which stated that the government is reviewing imports of electronics and information technology products from China over security and data threats. Interestingly, India imports electronics worth more than USD 22 billion.

Indian and Chinese armies are involved in a standoff at Doklam after China illegally began construction at a site which China illegally claims control of and is situated dangerously close to Indian border.

PM Modi Engages Private Sector For Job Creation
Source: Hindustan Times; August 16, 2017

In a major step towards involvement of the private sector in government decision making, Prime Minister Narendra Modi will be interacting intensively with 400 young chief executive officers and professionals in Delhi on Thursday and next Tuesday with an eye towards job creation, income enhancement, technology disruption and innovation, ease of doing business, and good governance and policy.

The young CEOs put forward their action plans before the government on Wednesday with comprehensive presentations on designated topics to me made before PM Modi on Thursday.

Finance minister Arun Jaitley and top secretaries to the government will also attend these sessions.

Documents accessed by the Hindustan Times said after PM Modi sees all the presentations on August 22, the NITI Aayog has been tasked to cull out action points emerging from these deliberations. In consultation with the concerned ministries, the government will prepare requisite notifications for executive actions, bring out policy notes to tweak the guidelines as per requirement and the NITI Aayog has been tasked to take up the issues with the states where the latter’s intervention is required.

Seen as the first major initiative involving CEOs below 45 years of age under the 2022 New India mission, PM Modi will be devoting his entire Thursday to hear from these young professionals on topics such as Digital India: Reaching the last mile; Energizing a Sustainable Tomorrow, Health and Nutrition,Education and Skill Development and Soft India, and Incredible India 2.0.

Indian vendors see hope as smartphone shipments rise
Source: Economic Times; August 17, 2017

Smartphone shipments by Indian vendors grew sequentially for the first time in four quarters, boosting the prospects of domestic companies as they prepare to take on Chinese rivals in the crucial second half of the financial year.

Indian smartphone companies registered an 18% sequential growth in sales in the three months ended June after declines in each of the three preceding quarters, International Data Corp said.

The share of domestic smartphone vendors was at 15% compared with 54% for Chinese rivals, according to IDC’s Quarterly Mobile Phone Tracker report. In all, 28 million smartphones were shipped in the quarter, a growth of 3.7% on quarter and 1.6% on year.

“Indian vendors have shown an early sign of recovery and now, when most of them are ready with their 4G product portfolio, a new set of China-based competitors have entered in the sub-$150 segment,” said Upasana Joshi, a senior analyst at IDC India. “Second half of the year will be crucial — either it will see a revival of Indian vendors or emergence of new dominance in the sub-$150 segment from China-based vendors.”

Samsung Electronics’ shipments fell 4% on-year but the South Korean company kept its top position, while China’s Xiaomi, which saw a 25% on-quarter growth, came in at No. 2. Xiaomi’s Redmi Note 4 became the mostshipped smartphone in any quarter in the history of Indian smartphones, with over 2 million sold, IDC said in its report.

India may force foreign handset makers to set up servers here to ensure data protection
Source: Economic Times; August 18, 2017

The government may go to the extent of asking foreign handset makers to set up servers in India as the next step in ensuring the protection of user data, following concerns about security breaches, especially as most Chinese smartphone vendors have servers in their home country.

Officials in the electronics and IT ministry said while the issue of apps sweeping up excessive user data was worrying, the broader issue remained that of the security of information that could be going to third parties outside the country.

“There have been voices raised for the past several years that by virtue of servers being outside of India… data processing has become the new field (of commercial exploitation),” said an official.

The government has already asked 21 smartphone companies, most of them Chinese, for protocols used by them by August 28 to ensure the security of mobile phones sold in the country.

Chinese handset makers led by Xiaomi, Oppo, Vivo, Lenovo and Gionee account for more than half of India’s $10 billion smartphone market, with most of these companies having servers in China. Xiaomi has its servers in Singapore and the US.

Another official highlighted the twin issues that the government is trying to address through its directive to the smartphone companies.

The first is that the data being collected from users after their consent through apps is disproportional to what’s needed to enable such functions.

Compiled by IESA Research

The IESA WINWire is available on the IESA website, To receive IESA WINWire or be removed from our distribution list, email  with "Subscribe" or "Unsubscribe” in the subject box.

All information provided in this document is of a general nature and is not provided with any warranty as to its suitability to the circumstances of each individual business. Readers and users are entirely and individually responsible for taking appropriate action with regard to the setting up of such services and for the consequences of such actions. As per Copyrights Act, 1957 (“Act”) : Publishing articles which contain extracts from other works and providing the source of such extracts will not be an act of infringement of copyrights.

Copyright © 2007, India Electronics & Semiconductor Association


India Electronics & Semiconductor Association
Head office: Unit G-02, Ground Floor, Prestige Terminus-II, 901 Civil Aviation Road, (Old HAL Airport Exit Road), Konena Agrahara,
Bangalore 560 017 | India.  Phone: +91 80 4147 3250 Facsimile: +91 80 4122 1866
New Delhi office: DBS Business Centre, First Floor World Trade Tower, Barakhamba Lane Connaught Place, New Delhi - 110 001 India