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  IESA WINWire July 1, 2017 - July 7, 2017 for Subscription click here  
12th Anniversary

Nominate Now for IESA Deftronics Awards 2017

IESA DEFTRONICS Awards at DEFTRONICS 2017 aims to recognize outstanding individuals and role models in innovation and excellence in the electronics & design services ecosystem in Aerospace and Defence (A & D) Industry.

The Awards will honor India’s best individual contributors and organizations that drive the industry forward; and provide them with a platform to showcase their achievements and product success.

Government imposes 10 per cent customs duty on imported mobile phones, parts
Source: The Indian Express; July 1, 2017

The 10 per cent customs duty will be levied on imported cellular mobile phones and accessories such as charger, battery, wire headset, microphone and receiver, key pad, USB cable and other specified electronic goods. The government has imposed 10 per cent basic customs duty on mobile phones and parts like charger, headsets, battery and USB cable with immediate effect to boost domestic manufacturing. The 10 per cent customs duty, according to an official statement, will be levied on imported cellular mobile phones and accessories such as charger, battery, wire headset, microphone and receiver, key pad, USB cable and other specified electronic goods.

However, present exemption from basic customs duty on specified parts of mobiles — printed circuit board assembly (PCBA), camera module, connectors display assembly, touch panel, cover glass assembly, vibrator motor and ringer will continue.

Making clear the government’s intention to boost mobile phones manufacturing in India, the statement said inputs and raw material for manufacture of parts of specified electronics goods, including mobile phones will also continue to be exempt from basic customs duty.

IESA deal to boost electronics mfg
Source: The Times of India; July 3, 2017

To improve the electronics manufacturing industry in Kerala, the government inked a pact with India Electronics and Semiconductor Association (IESA). As part of the agreement, a liaison agency will be set up in Taiwan to promote the investment potential of Kerala's electronics system design and manufacturing (ESDM) sector. The agreement received cabinet nod after the new IT policy was approved recently.

A memorandum of understanding (MoU) was signed by the electronics and IT secretary M. Sivasankar and IESA president MN Vidyashankar on Thursday. The agreement is expected to attract high-value investments from Southeast Asia and offer access to lucrative markets in Asia's tech hub. Plans are afoot to extend operations in South Korea and Philippines.

"This partnership is in line with the government's development strategy (as outlined in this year's budget) to transform Kerala into a manufacturing hub for IT hardware. By providing additional avenues for investment, collaboration and expansion, it will complement the government's efforts to re-energize the state's electronics manufacturing capacity and start-up ecosystem," said Sivasankar.

Kerala will also leverage IESA's network with prominent industry bodies to raise awareness and better position its brand in target countries. The agency will conduct two annual road shows, one each in Taiwan and Kerala and organize delegation visits.

'Big data analytics to become $16 billion industry by 2025'
Source: The Economic Times; July 3, 2017

Big data analytics sector in India is expected to witness eight-fold growth to reach $16 billion by 2025 from the current $2 billion, industry experts said here.

The sector is expected to reach $16 billion by 2025 and register CAGR of 26 per cent over next five years, they said.

According to these experts, India is currently among top 10 big data analytics markets in the world and Nasscom has set a target of making the country one among the top three markets in the next three years.

"The government, industry and academia can collaborate to build an ecosystem to generate sustainable solutions by harnessing the power of big data and digital innovation," said WNS Global Services Group CEO Keshav Murugesh said.

"The combined power of harnessing big data and digital solutions can drive tremendous results in improving the citizen experience, implementation efficiency and boosting the nation's economy," added Murugesh.

Speaking at the 'Emerging Worlds Conference' workshop organised by Indian School of Design and Innovation (ISDI) in collaboration with MIT Media Labs, Murugesh said, "India is a diversified country with a wide array of challenges, and it is pertinent that we as citizens of this country, innovate to find effective solutions that can make a difference to the billion lives that live here."

Why India's GST is China's headache
Source: DailyO; July 3, 2017

The Goods and Services Tax (GST) has an interesting China connection. The country's transformational tax reform may turn out to be a strong deterrent to cheap Chinese imports in India.

The GST, by its design, is likely to break the interstate supply chain of cheap Chinese products, leading to a reduction of such imports here. However, imports of large products will not face the heat, but the unavailability of cheap Chinese products may push inflation in some segments.

Consumables consists of a major part of cheap imports from China, which are distributed through unregistered and cash-based trading networks spread across India. Toys, low-priced electronics, computer components, crockery, mobile accessories, lightings, stationary, plastic wares, building material (floorings, wallpapers) and ceramics are some of the cheap Chinese imports distributed across the length and breadth of the country via major trading cities.

Since the GST may put an end to the existing distribution chain, it is not unreasonable to predict that traders in Gaffar Market and Nehru Place of Delhi or Manish Market, Musafir Khan, Abdul Rahman Street in Mumbai may witness the return of pre-1991 era of regulated imports at least for a short period of time.

The supply chain of cheap imports from China starts from the placement of orders to suppliers by Indian importers. Cheap imports take place in bulk and come to India in large containers. Importers pay import duty of 14-28 per cent and countervailing duty (CVD) between 0-150 per cent (average 12 per cent) depending on the products.

Foxconn plans to invest up to Rs 32k crore in India
Source: Economic Times; July 3, 2017

Foxconn, the world's largest contract manufacturer for electronics, has firmed up plans to invest up to $5 billion (around Rs 32,000 crore) in India as it looks to make the country a parallel manufacturing hub to China for export to key markets across Europe and the US. A top official at the Taiwanese company said Foxconn will ramp up Indian operations in an “exponential manner“, the confidence coming from the implementation of GST as well as imposition of an import duty on mobiles phones that would discourage sourcing from China and other foreign locations. “India is already high on our priority list, and we now plan to step up investments and business here by opening new factories and expanding the manufacturing footprint,“ the official told TOI, requesting anonymity .

Foxconn chairman & CEO Terry Gou has already committed more investments in India during his visit here, and has also spoken about partnerships with local players and industrial groups.

The decision to impose an import duty on phones and other key components such as chargers and batteries is a “confidence booster“ for the company and its supplier partners, the official said.“The real investments will start to flow in after this year.“

After the government introduced tax benefits for companies making phones locally around two years ago, there has been an increase in domestic sourcing against import of fully-built units from China.

Amid growing mobile market, Spice to set up manufacturing unit in Noida
Source: Business Standard; July 4, 2017

Telecom solutions company Spice is looking at setting up a mobile handset manufacturing unit in Noida, Uttar Pradesh.

Spice is a joint venture between Transsion Holdings, a global mobile phone conglomerate and Indian homegrown entity Spice Mobility.

“We have plans to set up a unit in Noida and there is a possibility of things taking shape in the next 6 months,” Spice CEO Sudhir Kumar said here on Tuesday. The proposed Noida factory could either be Greenfield or Brownfield unit, which would be decided in due course.

Currently, the company is sourcing handsets from three original equipment manufacturers (OEM) in India, of which two are based in Noida, while another is located in Daman.

In recent years, Noida and Greater Noida have emerged as the country’s mobile phone assembly hub with brands such as Lava, Intex, Karbonn and Samsung setting up their units. These plants basically churn out mobile phone handsets from imported knocked-down (CKD) kits, mainly sourced from China.

Noida has a capacity to manufacture over 140 million handsets per annum, which equals almost 40 per cent of the country’s yearly demand.

Recently, Union IT minister Ravi Shankar Prasad had said more initiatives were in offing to boost electronics manufacturing. The segment is vital for creating millions of jobs in near future for both skilled and semi skilled workforce.

‘Make with India’ initiative is Israel’s priority, says PM Benjamin Netanyahu during Modi’s visit
Source:; July 4, 2017

Prime Minister Narendra Modi is the first Indian Prime Minister to visit the West Asian country.

Israeli Prime Minister Benjamin Netanyahu on Tuesday welcomed Prime Minister Narendra Modi at the Ben Gurion International Airport in a courtesy otherwise reserved for the Pope. Netanyahu praised Modi as a great leader of India and a great world leader. He said Israel would start a “Make with India” campaign in collaboration with Modi’s “Make in India” initiative.

Welcoming Modi with the Hindi phrase, “Aapka swagat hai mere dost [Welcome, my friend]” , Netanyahu said Israel had been waiting 70 years for an Indian leader to visit the country. Modi is the first to do so.

The prime minister will be in Israel for three day days. “Your ‘Make in India’ will meet my ‘Make with India’ initiative, Netanyahu said. The Israeli said that with the progress in space technology collaboration, the “sky was no longer the limit” for bilateral ties.

During his brief address at the airport, Modi said fighting terrorism was a common goal that will be discussed in depth during his time in the country. “I am also keen to interact with the Indian diaspora in Israel and a large number of Jews of Indian origin,” Modi said.

The Indian prime minister said negotiations would focus on building the partnership towards a shared economic prosperity and cooperating towards securing their societies.

View from India: Goods and Services Tax unifies India into one market
Source: E&T; July 4, 2017

India’s biggest tax reform, the Goods and Services Tax (GST), which became operational on July 1 2017, is set to replace around 20 federal and state levies. This historic reform will unify a country of 1.3 billion people into what is being described as one of the world’s biggest common markets.

Narendra Modi, India’s Prime Minister, described GST as the path-breaking legislation for New India. A revolutionary taxation system for the digital India, he said, in his speech delivered at the Parliament Central Hall. The entire country will have a similar tax structure, uniformly implemented across India. There will be “One Nation, One Tax” and the system will be executed in a standard manner in all the states.

GST is expected to have a positive impact on the electronics industry and is definitely a more preferred regime than its preceding one. Before, there were many levels of indirect taxation, which were subjective. As a result, they could be interpreted differently. “With GST, everything has moved online and there is no manual interface, which will also help in transparency. It will help in the removal of the cascading effect of taxes. In the short term there may be temporary hiccups, but it is a great move and both the industry and consumers will be benefited in the long term,” explained M N Vidyashankar, President, India Electronics and Semiconductor Association (IESA), the premier industry body for Electronics System Design & Manufacturing (ESDM) in India.

Samsung to invest USD 19 billion in chip, display plants
Source:; July 4, 2017

Samsung Electronics said today it will invest 21.4 trillion won (USD 19 billion) in the next four years in its memory chip and display plants in South Korea.

The South Korean company’s announcement comes as the global memory chip industry enjoys a massive boom thanks to a surge in demand for microchips.

Global tech companies have been increasing servers and data centers to handle more data from mobile devices and auto vehicles and also on expectations that adoption of artificial intelligence would create even more demand for handling data.

Samsung said by 2021, it will spend an additional 14.4 trillion won (USD 12.5 billion) to increase the capacity in its memory chip factory in Pyeongtaek, south of Seoul, which began operating in the day.

Samsung said the 15.6 trillion won (USD 13.6 billion) chip plant, which broke ground two years ago, is one of the largest semiconductor production lines in the world.

Samsung said will spend 6 trillion won (USD 5.2 billion) in its memory chip cluster in Hwaseong as well. Another 1 trillion won (USD 871 million) will be spent on its display factory in Asan, the company said.

Samsung added that it is considering adding more semiconductor production lines in its factory in Xi’an, China.

Uttar Pradesh cabinet gives nod to new industrial policy
Source: The Indian Express; July 5, 2017

The Uttar Pradesh cabinet on Tuesday approved the Industrial Investment and Employment Policy, 2017 to boost investments and employment opportunities in the state. A cabinet meeting, presided by Chief Minister Yogi Adityanath at New Delhi, gave its assent to the new policy which aimed to “roll out a red carpet for the industries, instead of red-tapism” and facilitate the ease-of-doing-business, ministers Siddharth Nath Singh and Satish Mahana told reporters.

Industrial Development Minister Mahana said the new policy was aptly named as the Industrial Investment and Employment Policy as it aimed to increase the job opportunities in the state.

Besides a single-window system for time-bound clearance of all project-related works at the chief minister’s office, the policy also aimed at providing round-the-clock electricity, improving the infrastructure and ensuring a proper law-and-order situation, for which there would be dedicated police teams in big industrial clusters such as Gautam Budh Nagar, he added.

The policy redefined the mega projects and linked the investments with employment generation, besides establishing a new ‘Make in UP’ department to derive the maximum benefits of the Centre’s Make in India scheme, said the minister.

An investment promotion board would also be set up under the chairmanship of the chief minister and a wide network of water, rail, air and road connectivity would be established to facilitate the industries, he added.

Mouser Electronics Presents Five-city IoT Technical Roadshow in India
Source: PR Newswire; July 5, 2017

Mouser Electronics, Inc., the New Product Introduction (NPI) leader that empowers innovation, today announces its first five-city Internet of Things (IoT) Technical Roadshow Series 2017 in association with India Electronics and Semiconductor Association (IESA). The roadshow travels to the five major tech hubs of India - Bangalore, NCR, Pune, Chennai and Hyderabad - bringing IoT products, technologies and solutions to the forefront. This single-day roadshow in each city is designed for design engineers, IoT leaders, practitioners, FAEs, technology experts, EMS, OEM and ecosystem enablers.

The first roadshow in the series takes place July 7 at Vivanta by Taj, MG Road in Bangalore. Attendees will learn how Mouser empowers engineers by delivering new technologies, new product advancements, and component innovations. Mouser will also sponsor the afternoon break after four informative breakout sessions by industry leaders: Accelerating the Path to Industry 4.0 by Maxim Integrated; Smart Cities, Smart Automation by TE Connectivity; IoT and Long Range Communications by Texas Instruments; and How Secure Is Your Innovation by Microchip Technology.

With the IoT sector in India poised to reach $9 billion by 2020, the industry looks to accelerate this growth through technical knowledge-sharing. This riveting symposium will provide the foundation to design and development engineers, developers and startup community, field applications engineers, OEMs, EMS and technology experts in the ESDM sector to utilize IoT to its full extent.

GST to bring cheer for domestic electronic components’ manufacturers
Source: India Blooms; July 5, 2017

“The local manufacturers will be able to pass on the tax benefit to consumers in the form of price reduction,” said the report titled, ‘Electricals & Electronics Manufacturing in India,’ jointly conducted by ASSOCHAM and NEC Technologies. The study also observed that with the implementation of GST, multiple taxes and cascading effects of taxes will be eliminated.

Along with these benefits, firms will also be saving expenses incurred in warehousing and logistics which stood at approximately 5-8 per cent. “The lower taxes, simplified tax structure and technology empowered tax compliance system will provide an ideal ecosystem to improve the current situation of electronics manufacturing in India,” said the study.

It also added that, GST will give a major boost to the Indian electronics industry thereby, leading to subsequent increase in demand of locally manufactured electronics.

“With the implementation of GST, the electronics manufacturers will reap in significant cost savings in warehousing and logistics,” said the ASSOCHAM-NEC study.

Further, the report noted that even the demonetisation move of the government gave a boost to electronic payment devices with value of transactions getting almost doubled.

Besides, it is also certain to bring about innovations in electronic payment industry thereby leading to increase in number of point of sale (PoS) and mPoS (mobile point of sale) devices.

110 light utility helicopters to be bought under 'Make in India' project
Source: India Today; July 6, 2017

With the Russian Kamov-226T copter not meeting its requirements, the Navy is soon going to issue an expression of interest for procuring 110 light utility helicopters to be manufactured by an Indian firm in collaboration with a foreign firm.

Kamov-226T helicopter has been chosen to be built in a joint venture between Russia and Indian Hindustan Aeronautics Limited (HAL) for supplying 200 copters to the Army and Air Force for similar requirements of replacing their vintage fleet of Cheetah and Chetak copters.

"As the strategic partnership policy has been cleared by the government, an Expression of Interest would be issued to the Indian firms by the Defence Ministry in the next few weeks to buy 110 copters, which would be under the 'Made in India' project," government sources told Mail Today.

The sources said the Kamov 226T does not meet the naval requirements and therefore, a fresh tender would be required for buying the copters for the maritime force, they said.

The Navy flies Chetak copters for both shore-based and warship operations for search and rescue and surveillance operations along with a limited number of Dhruv copters for the force.

A number of Indian firms including Mahindra, L&T and Bharat Forge are likely to take part in the tender for which the foreign partner would be searched for separately by the force. The tender had been in the making for a long time.

Wipro Infra makes strategic defence pact with IAI, to set up manufacturing in India
Source: The New Indian Express; July 6, 2017

Wipro Infrastructure Engineering (WIN), part of Wipro Enterprises Pvt Ltd, has inked a strategic alliance with Israel’s aerospace and defence manufacturer Israel Aerospace Industries (IAI). Under the deal, WIN will be setting up a manufacturing facility in India in partnership with Israel Aerospace Industries.

IAI is an aerospace and defence company which specialises in development and manufacture of advanced, state-of-the-art systems for air, space, sea, land, cyber and homeland security. The company has provided advanced technology solutions to government and commercial customers worldwide in satellites, missiles, unmanned and robotic systems, among others.

Further, the facility will make composite structures in India for global markets and address the compliance requirements of IAI, other OEMs and tier-1 suppliers to meet defence offset guidelines detailed by the defence ministry, according to an official statement released on Wednesday.

In 2013, WIN set up India’s first aerospace actuator manufacturing facility at the Devanahalli Special Economic Zone in Bengaluru. Last year, it acquired HR Givon, an Israel-headquartered manufacturer of metallic parts and assemblies for the aerospace industry. Givon has three manufacturing plants — two in Israel and one in the US.

Pratik Kumar, CEO of WIN and Executive Director of Wipro Enterprises, said this partnership would not only strengthen the company’s presence in the growing aerospace sector and standing as a partner of choice for global OEMs and Tier-1s, but also help explore emerging business opportunities in key markets.

Compiled by IESA Research

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