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12th Anniversary

Rs 437-Crore Electronics Manufacturing Project Cleared For Telangana
Source: Hindustan Times; August 6, 2017

The government has cleared setting up of a greenfield electronics manufacturing cluster in Telangana with a total project cost of Rs 437 crore, an official source said.

Telangana State Industrial Infrastructure Corp (TSIIC) had submitted the proposal to the ministry of electronics and IT (MEITY) to set up an electronics manufacturing cluster over 310 acres of land area. “The project with a cost of Rs 437 crore has been approved by MEITY,” an official source, who did not wish to be named, told PTI.

This is the second electronics manufacturing cluster (EMC) project approved by MEITY for Telangana. In July, it had approved an EMC proposed to be set up by TSIIC with total project cost of Rs 667 crore covering total area of about 600 acre.

Under the EMC scheme, the central government provides assistance of up to 50 per cent of the project cost subject to a ceiling of Rs 50 crore for every 100 acres of land.

The scheme aims to encourage setting up of industrial parks that can house entire ecosystem, ranging from factories, design houses to academic institutions, required for manufacturing of electronics products.

As per official data, the government had granted final approval for setting up 15 EMCs in the country. After announcement of National Policy on Electronics, the government has received 233 investment proposals under Modified Special Incentive Programmes entailing investment of Rs 1.44 lakh crore.

Manufacturing Slowdown Not Linked To GST: Niti Aayog's Bibek Debroy
Source: The Economic Times; August 6, 2017

It's not reasonable to link GST with the slowdown in the manufacturing output as the sector is facing problems which go beyond the tax reform, says NITI Aayog Member Bibek Debroy. "Why should GST have any impact on manufacturing? The only answer I can think of is that there were some things where there was a lack of clarity in rules and some instances where it was not clear what the GST rate was," Debroy told IANS in an interview. The Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a composite indicator of manufacturing performance, on Tuesday showed that India's manufacturing sector's output declined last month due to the launch of the Goods and Services Tax (GST) on July 1.

It stood at 47.9 in July -- its lowest since February 2009 -- compared to 50.9 in June 2017.

An index reading of above 50 indicates an overall increase in economic activity -- and below 50, an overall decrease.

Asked whether some serious problems were ailing the manufacturing sector, Debroy said: "I agree. That, I am not disputing."

"About manufacturing, there is a long list of problems that are ailing the sector like physical infrastructure, including power and transport, procedures, tax issues -- direct as well indirect -- and credit-related issues," he added.

India’s Kalyani Group, Israel’s Rafael Open Missile-Manufacturing Facility
Source: Defence Aviation Post; August 6, 2017

India’s $2.5 billion private sector giant Kalyani Group on Thursday launched the country’s first-ever private missile subsystems manufacturing facility in partnership with Rafael Advanced Defense Systems of Israel.

The new entity, called Kalyani Rafael Advanced Systems, will undertake the production and assembly of Spike anti-tank guided missiles and its related technologies such as missile electronics, command, control and guidance, electro-optics, remote weapon systems, precision-guided munitions, and system engineering in the new 24,000-square-foot facility in Hyderabad, southern India.

”In line with the [Indian] government’s ‘Make in India’ initiative, the joint venture will invest in high-end technology and advanced manufacturing techniques to design, develop and manufacture state-of-the-art weapon systems for the Indian armed forces,” Kalyani Group said in a statement. ”This green fieled joint venture envisages creation of significant direct and indirect employment opportunities, import substitution and foreign direct investments into the country.”

Kalyani Group will have 51 percent equity holding in the joint venture company, while the remaining 49 percent will be held by Rafael. This is India’s largest-ever foreign direct investment joint venture firm.

“This joint venture company will undertake assembly and testing of medium-range Spike ATGM main nonexplosive subsystems including guidance unit, command launch unit, thermal sights and its electro-optics systems,” Kalyani Group Chairman Baba Kalyani said.

Goa aims at 100 startups in 5 years
Source: The Times of India; August 6, 2017

With the aim of creating 100 new startups over the next five years, the department of information technology will soon launch the Goa Startup Policy after the Cabinet grants approval, minister for information and technology Rohan Khaunte said.

Speaking on the discussion on demands for grants to IT on Friday, Khaunte also said a dedicated policy for existing IT companies looking to expand would be drafted and released in two months.

He said that given the scarcity of land, large companies such as Infosys would not find it feasible to begin operations in Goa, and instead, the government would focus on smaller companies.

The ministry intends to develop 100 startups within five years, for which around 2 lakh sq ft of land has been demarcated at the proposed IT park at Chimbel.

Goa Information Technology Development Corporation will serve as a special purpose vehicle to implement the government startup and IT policies, Khaunte said, while adding that the government is also attempting to streamline Goa Electronics Limited and Info Tech Goa Corporation to ensure that responsibilities were not overlapping.

The minister informed that an agreement had been inked with software technology parks of India and that a 48-seater incubator facility would be operational in Panaji

Responding to criticism about delays in completing processes related to land records and surveys, mutation, and other revenue department services, Khaunte said he would introduce technology to resolve issues.

Post Startup India, 2,200 ventures get DIPP stamp
Source: ET Rise; August 7, 2017

Over 2,196 new ventures have been recognised by the Department of Industrial Policy and Promotion (DIPP) since the launch of Startup India, easing patent filing and credit availability for them.

Government data shows there has been a spurt in registrations of startups following the change in definition in May 2017, which did away with the requirement of a recommendation letter from an incubator. The definition was also broadened to include “scalability of business model with potential of employment generation or wealth creation.”

“We are yet to assess the job creation potential pegged by startups who have registered with us but the response is encouraging,” a senior official told ET. Over 800 startups have been recognised by the DIPP in the last two months alone.

Only a few of these, about 50 startups, have qualified for three years of tax holiday in a block of seven years if they are incorporated after April 1, 2016.

In a notification issued on May 25 this year, the government increased maximum age of startups to seven years, from five earlier. For the biotechnology sector, the period was increased up to 10 years from the date of incorporation, keeping in mind the longer gestation period required for such companies. With the new definition now in place, more startups would be eligible to get tax benefits announced in last year’s action plan.

Centre approves State’s proposal for electronics cluster in Chittoor district
Source: The Hindu; August 8, 2017

The Union Ministry of Electronics and Information Technology has approved the State government’s proposal to set up a Greenfield Electronics Manufacturing Cluster (EMC) at Vikruthamala village in Chittoor district. The EMC will be developed over 501.40 acre at a cost of ?339.80 crore. The proposed EMC is expected to generate nearly one lakh jobs.

The Andhra Pradesh Information Technology, Electronics and Communications Department has received the confirmation letter from the Central government. The project is strategically located in the State bordering Karnataka and Tamil Nadu, which together account for major share of electronic production in the country. For example, Sripermbudur in T.N., an electronic cluster, is around two and half hours by road from the site.

“There is already an electronic ecosystem in the region. It will propel the development of the cluster,” said an official from the department, who didn’t want to be named. The Centre has approved the State’s proposal under the EMC scheme. The Centre will support about one third of the project cost. The rest of the fund has to be arranged by the State government. The amount is used to create infrastructure for setting up the electronic components manufacturing units. So, the State will be getting a grant-in-aid of ?111.42 crore towards the project.

The new cluster caters to the needs of electronic products manufacturing, electronic component manufacturing and semi-conductor designing companies. Already another EMC, which is developed by mobile company Celkon Impex Pvt. Ltd near Renigunta in Chittoor district, is functioning.

Defence Electronics Policy To Push Growth
Source: Electronics B2B; August 8, 2017

India is the ninth largest aerospace and defence market but the largest importer of capital equipment globally and significantly relies on import to meet 70 per cent of its defence needs. To reverse this phenomenon, efforts are being made by the government to kick off more projects in the last two years. Within the defence sector, defence electronics is becoming a key market to tap. As per estimates, the aerospace and defence electronics market in India will be around $72 billion in 10 years.

Emphasizing the market opportunity in electronics and the dynamics in this space, India Electronics and Semiconductor Association (IESA) president M N Vidyashankar, told Telangana Today, that of the 2,70,000 crore defence budget, defence electronics was allocated Rs 40,000 crore. Government and the industry are looking at more indigenisation to bring down the large import component. This will not happen overnight. But the efforts have begun in this direction already.

The draft recommendations for the Defence Electronics Policy, which were put together by the IESA along with Nasscom had been submitted to the Secretary, Defence Production which has gone through several iterations in the past. In addition, Roland Berger, a global strategy consulting company with expertise in defence, was roped in an as advisors to further fine tune the recommendations based on the feedback of the Defence Ministry and other key industry stakeholders.

Schindler To Invest Rs 170 Cr To Expand Manufacturing Facilities In India
Source: Business Standard; August 8, 2017

Leading providers of escalators and elevators Schindler India is all set to invest Rs. 170 crores to expand its manufacturing facilities by setting up India's first Escalator manufacturing line and towards improving its research and development facilities at its plant near Chakan in Pune.

These investments will give Schindler India a unique edge and propel them to further strengthen the market leadership position in the elevators and escalators industry in India.

Schindler India is committed to growing the elevators business in India and plans to expand its elevator line to produce a capacity of around 17500 units and its escalator line to 1200 units per annum by 2019.

Under the government's 'Make in India' initiative, Schindler has already made an investment of Rs. 430 crore towards setting up a factory, an R&D centre that boasts a 71mt tall tower with eight shafts where each and every component of the elevator undergoes strenuous testing.

Schindler India's 170 crore investment is part of the total Rs. 600 crore outlay over a period of six years which employs more than 1000 people at any point of time in Maharashtra.

"The elevator and escalator market is expected to grow at eight percent in the current fiscal and at Schindler India it is our aim to grow faster than market. In the last 10 years our turnover has grown from Rs. 300 crore to Rs. 1600 crore.

China Mobile Handset Partner Voto To Enter India, Eyes Rs 700 Crore Revenue
Source: ET Telecom; August 8, 2017


Chinese smartphone brand Voto Mobiles will launch three smartphones under the sub-Rs 10,000 smartphone segment to enter the highly competitive handset market in India. It is aiming to clock Rs 700 crore revenues and sell a million smartphone units in India by the end of the ongoing financial year, a company official said.

“India is the first international foray for us. We also have plans to enter Bangladesh, Sri Lanka, and Nepal in the last quarter,” Sayantan Dey, Business Head- Overseas – Voto Mobiles, told ET.

The executive said that it considers Xiaomi as its main competition in India. “Our portfolio is similar to Xiaomi’s in terms of pricing,” he said.

The Indian handset market has recently seen entry of new Chinese brands like iVoomi, Techno Mobile and Infinix, while Comio will be making their debut in India soon.

Chinese brands are growing strongly in India and are now contributing to more than half of the total smartphone shipments. These brands’ market share was well over 50% in the last quarter.

Xiaomi, Vivo, Oppo and Gionee were the fastest growing smartphone brands with strong offline push and advertising Blitz-Krieg, according to Counterpoint Research.

Voto currently sells its handsets in China under an exclusive partnership with telco China Mobile. Its devices. In China, the brand’s handsets are manufactured by Xunrui Communications, which makes devices for several global mobile brands.

More Than 350 Million Smartphones Shipped To India in 2017: Assocham-Kpmg Study
Source: Hindustan Times; August 8, 2017

A joint study conducted by Assocham-KPMG reveals that the smartphone shipments to India increased to 350 million units in 2017. The study also highlights that there has been a growth in revenue from Rs 111,000 crore in 2015 to Rs 135,000 crore in 2016.

With smartphones constituting 43 per cent of the total handset shipments in 2016 -- having gained immense popularity in the last four years -- the Indian handset market has recorded over 350 million shipments in 2017, the joint study said on Tuesday.

“Robust growths of the handset market coupled with enhanced connectivity of telecom services have been pivotal in growth of various industries such as retail, manufacturing, IT, e-commerce,” said the study titled ‘Accelerating growth and ease of doing businesses’.

The study said Indian handset exports flourished from 2008 to 2012 going up to Rs 12,000 crore, but were interrupted by a decline of almost 30 per cent in two subsequent years.

Downfall of handset manufacturing industry became a major area of concern for the government, it added.

The study pointed out that in order to revive the industry, it is imperative to boost handset manufacturing in India.“The FTTF (Fast Track Task Force), set up in 2014, has a target of increasing count of handsets manufactured in India to 500 million and handset exports to 120 million by 2020,” the study said.

‘Make in India aimed at making India global manufacturing hub’
Source: The Indian Express; August 9, 2017

The ambitious ‘Make in India’ scheme of the Modi government is aimed at making the country a global manufacturing hub and transforming its economy, an Indian diplomat in the US has said. ‘Make in India’ is one of the flagship programmes of the Government of India which is aimed at transforming the Indian economy towards making it a “global manufacturing hub”, India’s Consul General in Chicago Neeta Bhushan said in her address to a business community from the mid-west region recently, a media release said yesterday.

In her key note address at an event organised in partnership with US India Chamber of Commerce Midwest, Bhushan said that there are at least 30 key economic sectors which international companies can consider setting up manufacturing bases in India. Noting that there is considerable synergy between the Indian states those in the US midwest, Bhushan said this could be effectively utilised to boost the manufacturing sectors in both countries. She highlighted about the benefits of the Goods and Service Tax (GST) regime and how it has subsumed 17 taxes and over 23 cesses in India.

“The GST is aimed at integrating the tax structure throughout India. The government has taken a series of reforms to improve the ease of doing business,” she said. In her address, she also talked about other flagship programs of the Indian government such as ‘Skill India’ and ‘Digital India’.

Apple To Ramp Up Local Manufacturing, Retail Operations In India: CEO Tim Cook
Source: BGR; August 9, 2017

At Apple’s Q3 earnings call last week, CEO Tim Cook stressed upon the importance of India, and said he’s “bullish” about the market. Given Apple’s slump in China, owing to the meteoric rise of local smartphone manufacturers there, India is a critical cog in the wheel for the iPhone-maker. Its home market US is saturated now, and so are other geographies like UK; hence, the next phase of Apple’s growth that will fuel its global expansion will come from emerging markets, particularly India, which is home to the world’s largest smartphone population.

In an interview with The Hindu, Cook said that the Cupertino-based tech giant would scale up manufacturing in India a great deal in the coming years, and would also look at developing localized features on the iOS – something that would appeal to India’s largely non-English-speaking, cricket-and-entertainment-obsessed populace. Cook, incidentally, is the first Apple CEO to visit India when he toured last year. His predecessor Steve Jobs never came to India in the capacity of Apple CEO. He, however, was said to have been influenced by India’s Yogic culture in his youth.

Cook said that Apple has already created 7.5 lakh jobs in the iOS ecosystem in India, and is roping in more local developers who can build apps that cater to desi needs. “We are bringing Hindi to dictation. We have brought cricket to Siri… We are also localizing our keyboards within iOS. So we are trying to think through every single way to make the user experience better for the Indian customer,” he noted. In June, Cook was among the illustrious Silicon Valley CEOs who met PM Narendra Modi in Washington, and promised more investment and attention in India.

Cummins To Invest ?1,500 Crore In India R&D
Source: The Hindu Business Line; August 9, 2017

Engine manufacturer Cummins will invest ?1,500 crore to boost its research and development activity in India where the company employs about 10,000 people.

“We are investing about ?1,500 crore in India by launching a new R&D facility in Pune. With the addition of the new facility, we’ll have about 2,500 engineers. Currently, we have 1,500 engineers working in our R&D facility in India,” Srikanth Padmanabhan, President, Cummins Engine Business, told BusinessLine.

Padmanabhan said that while the centre is working on creating engines suited for Bharat Stage IV and Bharat Stage VI emission norms, the India R&D centre is also increasingly acting as a base to create products for the world.

“I think we are starting to create our off-highway products from here. Over time, this place (India) will become the centre of excellence or core for certain range of products and technologies,” he said.

Cummins, which wants to be known as a technology company, trying to drift away from popularly known to be a diesel engine manufacturer, is harping on India’s tech talent to create connected car platforms, which require analysing data and creating insights from it.

“As we tend to think about big data and analytics, because of the capabilities of the Indian software industry and the people that are here, the work that we do on analytics will continue to increase where we will combine our product, our connected features that generates a lot of data and then to see how do we analyse the data for meaningful insights,” Padmanabhan said.

Japanese MNC Toray to invest Rs. 1,000 cr in manufacturing facility in Sri City
Source: The Hindu Business Line; August 11, 2017

Andhra Pradesh Chief Minister N Chandrababu Naidu today approved a proposal of Toray Industries, a Japanese multinational corporation for setting up a manufacturing unit.

The company plans to invest Rs. 1,000 crore on a unit to make technical textiles in Sri City, as a part of Toray’s India Expansion Plan.

Toray plans to set up the unit on a 109.35 acre site in Sri City located in Chittoor district.

The proposal was approved at a meeting with delegates which included Yukichi Deguchi, Senior Vice President and the General Manager, Katsuyuki Yamada, Director, Shigekaru Suenaga, MD and Jaasthi Krishna Kishore, CEO of AP Economic Development Board, according to a statement from the Chief Minister's Office. The project will provide direct employment to more than 100 people, and indirect employment to around 300 to 400 people.

Toray also informed the foundation stone for the project will be laid next year.

Toray Industries is a leading manufacturer of fibers and textiles, performance chemicals, carbon fiber materials, life science and environment engineering.

With a presence across 25 countries, the company has global sales of $ 9.5 billion dollars as of March 2017.

India Signs Defence Agreements With 21 Nations In 3 Years
Source: Defence Aviation Post; August 10, 2017

After BJP came into power in 2014, India signed military or defence related agreements with 21 countries in the last three years. Among the nations, India entered into agreements include US, Russia, UAE, Japan, France, Republic of Korea, Bangladesh, Botswana and Vietnam.

With Fiji, Kazakhstan, Kenya, Kyrgyzstan, Oman, Portugal, Seychelles, Singapore, Spain, Sudan, Tanzania and Turkmenistan, India also signed deal for military and defence cooperation.India first signed the Memorandum of Understanding (MoU) on Defence Cooperation and Exchange with Japan on September 1, 2014, said Minister of State for Defence Subhash Bhamre in a written reply in Rajya Sabha.

It also signed deal with Bangladesh on June 6, 2016 for establishment of Collaborative Relationship to Combat Transnational Illegal activities at sea and Develop Regional Cooperation.The agreement was signed between Coast Guards of both the nations.A total of 34 MoUs were signed between India and 21 others nations.From January 2001 to June 2016, 205 Indian companies were issued 342 industrial licences for manufacturing of defence items, he added. UNI ASH SHK 1918

Compiled by IESA Research

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