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  IESA WINWire July 22, 2017 - July 28, 2017 for Subscription click here  
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Mobile phones worth Rs 90,000 crore 'made in India' in 2016-17: report
Source: Deccan Chronicle; July 23, 2017

Mobile phones worth Rs 90,000 crore were produced in the country last fiscal, while imports of handsets stood at $3.7 billion (about Rs 24,364 crore) during the period, Parliament was informed.

India, which is one of the largest telecom markets globally, has seen production of mobile handsets grow at a steady pace over the past few years.

"During 2014-15, mobile handsets worth Rs 18,900 crore were produced in India, which increased to Rs 54,000 crore in 2015-16 and further to Rs 90,000 crore in 2016-17," telecom minister Manoj Sinha said in a written reply to the Rajya Sabha.

Domestic production of cellular mobile handsets witnessed a growth of 185 per cent in value terms in 2015-16 compared to 2014-15 and 67 per cent in 2016-17 as against 2015-16, he said.

Sinha noted that during the said time-frame, import of mobile handsets declined from 210 million devices (worth $7,948 million) in 2014-15 to 146 million units ($6,059 million) in 2015-16.

Imports further fell to 76 million units ($3,788 million) in 2016-17, he said.The minister said all major brands (both foreign and Indian) have either already set up their own manufacturing facilities or are in the process of doing so.Some companies have also sub-contracted manufacturing to Electronics Manufacturing Services (EMS) companies operating from India. These factories are located in regions like Andhra Pradesh, Delhi, Haryana, Uttarakhand and Himachal Pradesh.

PM Modi Government Targets Indigenous Supercomputers under 3-Phase Project
Source: NDTV; July 23, 2017

As part of the Modi government's 'Make in India' initiative, supercomputers will be manufactured in India under a three-phase programme, officials said.

In the initial two phases of the National Supercomputers Mission, the focus will be on designing and manufacturing subsystems such as high-speed Internet switches and computer nodes indigenously.

The Rs. 4,500-crore project was approved by the Cabinet Committee on Economic Affairs in March last year.

A Request for Proposal (RPF) for the project is in its final stages and is being executed by the Centre for Development of Advanced Computing (C-DAC), Pune, a research and development institution under the Ministry of Electronics and Information Technology.

The NSM envisages nearly 50 supercomputers in three phases. The government has plans to make these high-precision computing machines available for scientific researches across the country.

Milind Kulkarni, a senior scientist with the Ministry of Science and Technology who is over-looking the project, said the plan is to "have six supercomputers in the first phase".

In the first phase, three supercomputers will be imported. System assemblies for the remaining three will be manufactured abroad, but assembled in India. C-DAC will responsible for the overall system design. Two supercomputers will have a peak operational capacity of two petaflops and the rest will be of 500 teraflops.Floating point operations per second (FLOPS) is the standard unit to measure computational power.

Kochi figures prominently in draft industrial policy
Source: The Hindu; July 24, 2017

Ernakulam district finds a prominent place in the draft industrial policy for the State being discussed now in various forums. From doubling of the capacity of Travancore-Cochin Chemicals to an electronics manufacturing cluster in Kakkanad, the industrial policy is a roadmap for the manufacturing sector development.

Besides the mega project like a petrochemicals complex in Kochi, the draft policy proposes an electronics hardware park at Amballoor and an electronics incubator at Infopark in Kochi.

The draft says that the industrial development of the State has been guided by the policies in 2007 and 2015 and that the present circumstances call for a “new approach”.

The draft also points out the State government’s anxiety about privatisation moves by the Union government. The privatisation move has created a sense of “panic” among the employees. The privatisation of industrial units like Fertilizers and Chemicals Travancore is already under way. When the government decided to privatise Instrumentation Limited, the State government stepped in to in principle approval for the takeover of the unit by the State. The procedures are on. Twenty-five per cent of the shares in Cochin Shipyard Limited, a project that was launched in the second Five Year Plan for the whole of South India, is being sold by the government.

Govt. Plans to easing defense FDI norms to generate Employment
Source: Business Standard; July 24, 2017

The government is in discussions with stakeholders on further liberalising the country’s foreign direct investment (FDI) in defence in order to give a fillip to Make In India and generate employment.

Talks are on among government departments, the NITI Aayog, and other stakeholders on various items such as whether it should increase the cap under the FDI automatic route from 49 per cent to 51 per cent in a broad sweep of products except for some like small arms and ammunition.

Currently, under the FDI policy, the government has opened up most products on the automatic route but has kept a cap of 49 per cent. However, it has permitted up to 100 per cent only after its approval.

Talks are also on whether FDI on the automatic route with a cap of 76 per cent should be allowed in areas where investments in a product can have a knock-on effect on the civilian sector, such as making aircraft or helicopters. So, for example, making fighter aircraft in India will give an impetus to manufacturing civilian aircraft also. So is the case with helicopters.

Also, the same cap could be kept for sunrise cutting-edge technologies to encourage companies that own them to bring them to India without any fear of losing their intellectual property.

It is also being discussed whether certain products in which India has no manufacturing capability, or which are not lethal, should be allowed an FDI limit of 100 per cent on the automatic route.

Army to host big event for small cos this week as it cuts imports
Source: The Economic Times; July 24, 2017

The Army is looking to procure components and subsystems of crucial equipment such as tanks, artillery and guns from local companies to address shortages of ammunitions and spares and end import dependency, officials said. The army will hold a two-day event starting Tuesday in New Delhi to ensure greater participation of micro, small and medium enterprises (MSMEs) in manufacturing required spare parts and subsystems, and help create an ecosystem in the private defence industry. The Master General of Ordnance (MGO) branch, which is responsible for procurement of equipment, and components, will organise the event, ‘Annual MGO Industry Cooperation Meet’, officials said.

“The event has traction because we are not looking at very high end technological equipment,” said a senior MGO branch official. “We intend to tap the vast potential of the industry to provide the components and spares that are already being manufactured,” the person said. This will ensure that India does not have to depend on the foreign original equipment manufacturers (OEMs) for spare parts.

The process of procuring spares and components from OEMs is long, officials said. In addition, the army is facing shortages in ammunition and spares, which can adversely affect its capabilities, they said.

So, the army wants, for instance, a “can’t do without” engine part of T-90 tanks, or the bore of the Bofors guns, or the magazine of AK-47 assault rifles, to be manufactured by the MSMEs. Such components are being currently imported.

IT layoffs: Techies needn't worry, other sectors have jobs for them
Source: Business Standard; July 24, 2017

Nasscom, the apex body of information technology (IT) companies in India, has said while per capita employment in the IT sector is declining, the employment opportunity outside the sector is increasing.

The industry body plans to research on the impact of technology in other areas, said Nasscom President R Chandrasekhar.

Due to automation and other technology, per capita employment is gradually declining in the IT sector, and also in absolute terms the total quantum of employment in the sector is down from its peak of 240,000 people on a net basis to 130,000-150,000, said Chandrasekhar.

The Nasscom president was speaking at a panel discussion on trends in the IT industry organised by the Southern India Chamber of Commerce and Industry (SICCI) in Chennai.

"It looks like the employment opportunities have shrunk. However, the employment opportunity outside of the sector has gained importance because technology has become more pervasive. We are looking at researching the impact of technology in other areas," he said.

"Flipkart is believed to have created almost 400,000 jobs. Though it is not part of the technology sector, it is a product of the technology application in e-commerce," he added.

Increasingly, opportunities for technically skilled personnel is spreading across sectors, where a combination of technology skills, domain knowledge and soft skills is needed.The nature and combination of skills have become more important than a unidimensional skill.

Panasonic Seminar Addresses the Manufacturing Industry through Smart Factory Solutions
Source: Dataquest; July 24, 2017

Panasonic India addressed the manufacturing need of the electronics industry through the recently concluded seminar. Smart Factory Solutions were introduced for products and solutions across “Any Mix, Any Volume”.

Panasonic has the distinctive ability to provide total solutions beyond the production line. While we can provide best-in-class hardware and software tools from our own portfolio, which allows us to provide turnkey solutions for various application and business models, that it’s necessary for them to be relevant in the Smart Factory. We have the capabilities to integrate with many complementary partners and in case if it is new protocol and can develop interface tools for the same.

Present at the occasion, Mr Vishal Dahiya, General Manager, Panasonic India, said, “In today’s connected world, manufacturing units must be smart. They should be able to seamlessly integrate with different factory automation systems into a single entity for traceability of any product, any process, regardless of manufacturing mix or volume. And, a Panasonic, we focus on connectivity and new innovations for manufacturing that are Industry 4.0-ready. These solutions are designed to go beyond Machine-to-Machine interface to offer better outputs.”

Moreover, the newly introduced NPM-DX is a next-generation platform that leapfrogs part range, speed, and capability while reducing resource requirements with novel approaches to automated error recovery for uninterrupted production.

Yamaha opens 1st Japan - India Institute of Manufacturing in Chennai
Source: ET Auto; July 24, 2017

As a part of its Corporate Social Responsibility Initiative, India Yamaha Motor (IYM) on Monday announced the opening of the first Japan-India Institute of Manufacturing (JIM) in Chennai according to a company statement.

The first Technical Training Institute opened under JIM has been named as Yamaha Motor NTTF Training Center (YNTC) which aims to train future shop floor leaders with the Japanese style of manufacturing and working methods.

JIM is a collaboration between the Governments of Japan and India along with Japanese companies to create a pool of skilled manpower for manufacturing units in India.

JIM has been established from a Memorandum of Cooperation (MoC) signed in Tokyo on November 11th, 2016 between Ministry of Economy, Trade and Industry, Government of Japan (METI) and Ministry of Skill Development and Entrepreneurship, Government of India (MSDE), for a “Manufacturing Skill Transfer Promotion Program”.

Under this initiative, Japanese Endowed Courses (JEC) will also be introduced in existing engineering colleges to train 30,000 Japanese standard shop floor leaders and engineers over the next ten years.

YNTC will run a four-year program in Manufacturing Technology in association with Nettur Technical Training Foundation (NTTF), an educational foundation aimed at promoting technical education for youth in India.

The curriculum provided by YNTC and NTTF is registered under National Employability Enhancement Mission (NEEM), a government scheme to promote employability through on the job practical training for individuals.

Startup India Hub To Allow Direct Application Of Funds From Entrepreneurs: Report
Source: BGR; July 24, 2017

Startup India Hub, which provides a common platform to entrepreneurs, advisers and investors to discover and engage with each other, is reportedly working on an initiative that will allow startups to apply for the government schemes and venture funds directly from the platform. Startup India Hub was launched by the government last month to further its Startup India initiative and educate startups about Central schemes and benefits doled out to them.

The portal has already listed about 167 schemes that hold various benefits for startups. Going ahead, it will simplify the process of fund application. “The real challenge is that people don’t know about government schemes. Currently, we are only showing the schemes on the platform but the next step is to allow startups to apply for these schemes and enable them to track their application form’s status online,” an official was quoted as saying.

Startups would be provided with a formal profile and log-in details, and their applications would reflect live on the portal. Some of the benefits already listed include Technology Development Programme, Software Technology Park Scheme, Support for International Patent Protection, Electronic Development Fund Policy, Bank Credit Facilitation and Performance & Credit Rating Scheme. The government is in the process of adding more functionalities. Another report revealed that the Centre was planning to roll out the platform in 6 additional languages soon.

IAI keen to collaborate with more Indian firms
Source: The Hindu Business Line; July 25, 2017

Israel’s prime aerospace and aviation manufacturer is working with the DRDO on long-range missiles.State-owned Israel Aerospace Industries (IAI) is gearing up to take its recent defence contracts to the next level in India, and is keen to ink joint ventures with Indian firms, in which local companies will own 51 per cent controlling interest.

In May, IAI, Israel’s prime aerospace and aviation manufacturer, was awarded an additional $630-million contract for the supply of Barak-8 Long-Range Surface-to-Air Missile System (LRSAM) for four ships of the Indian Navy, after an earlier $2-billion deal for the supply of advanced Medium-Range Surface-to-Air Missiles (MRSAM) and missile defence systems to the Army.

Shalom Revivo, Executive Director, International Sales and Marketing, IAI, told BusinessLine how the contracts reinforce IAI’s global leadership position with regards to air and missile systems, and how the firm is looking forward to establishing local companies in India that will compete in defence tenders over the coming years.

The MRSAM/LRSAM projects are co-development programmes in collaboration between IAI and the DRDO (Defence Research and Development Organisation). There is an agreed work share that we are doing together with the DRDO and other Indian partners, amounting to hundreds of million dollars. IAI will also be doing several other programmes with our supply chain partners in India.

China’s ‘Comio’ to invest Rs 500 cr in India; eyes 5% smartphone market share in 3 years
Source: Hindustan Times; July 25, 2017

Chinese original device maker (ODM) Topwise Communication will bring its ‘Comio’ brand of smartphones to India and plans to invest Rs 500 crore over the next two years to build its presence in the country.

The company, which will compete with the likes of Samsung, Xioami and Micromax in India, aims to capture 5 per cent market share in three years of operations here.

“We have been an ODM to many players, including those in India. There is a huge opportunity in India and we are keen on tapping that,” Comio CEO Sanjay Kumar Kalirona told reporters.

He added that Comio will play in the Rs 6,000-12,000 price bracket, which is a “sweet spot” accounting for 35-40 per cent of the smartphone market in volume terms.

“There aren’t many players in the offline market in this price range. Most Indian companies are focusing on sub-Rs 6,000, while other Chinese firms are looking at devices over Rs 15,000,” he said.

Asked how Comio will compete with the likes of Oppo and Vivo that have pumped in crores of rupees towards marketing and promotion, Chief Marketing Officer Sumit Sehgal said the company believes in “smart marketing”.

He said the company, which plans to follow an offline- only model, will focus on distributors as well as build strong after-sales service to enhance experience rather than just buying market share.

Mouser Electronics 2nd City IoT Roadshow Successfully Concludes a Joint Notion of Innovation in India
Source: Bisinfotech; July 25, 2017

Mouser Electronics successfully concluded its 2nd City IoT Roadshow on 21st July 2017, Noida-Delhi. The first of its kind joint technical roadshows supported by IESA (India Electronics & Semiconductor Association) logged 280 pre-registrations and was attended by 130 participants.

At the roadshow, delegates experienced the newest products, technologies and solutions impacting Internet of Things (IoT) development and participate in high-level discussions covering key design trends and manufacturer presentations supporting the electronics industry in India.

Mouser Electronics leading partners like ALPS, TE, TI & ST delivered excellent technical presentations transforming the perspective of the roadshow.

The Roadshow brought a houseful of strong and diverse profile of delegates under one roof, which included IoT Startups, Design Engineers, Consultants, Hardware Engineers, Technical Experts, Educators, Development Engineers, Field Applications Engineers, Original Equipment Manufacturers, Electronic Manufacturing Services and Technology Experts.

The successful event possessed an interactive session where the industry-leaders, innovators and delegates jointly exchanged future and present challenges and way forward to drive the Indian electronic industry.

Mouser Electronics lauded IESA for its strong support and jointly help to foster the Indian ESDM sector to the global level and inducting innovations through a holistic approach.

The Internet of Things (IoT) links together a lot of things – networks, devices and data. To build your own IoT solution successfully, one needs to have knowledge of the technologies, platforms, networks, security, trends and ideas that connect it all together.

IIM Lucknow signs MoU with HPCL to promote energy start-ups
Source: Business Standard; July 25, 2017

Indian Institute of Management, Lucknow (IIM-L) and Hindustan Petroleum Corporation Limited (HPCL) have signed a Memorandum of Understanding (MoU) for incubating innovative ideas and business start-ups in the domestic energy sector.

Under the tie-up, the selected start-ups would be provided with seed funding and incubated at IIM-L Enterprise Incubation Centre (L-INCUBATOR). The MoU was signed recently during Startup Pitch Day at the Noida campus of IIM-L.

“This agreement will unlock the unlimited and undeniable potential of the start-up ecosystem in India and will impact the economy as a whole,” IIM-L faculty professor M Akbar said about HPCL bringing its start-up programme to L-INCUBATOR.

Meanwhile, the energy start-ups have made presentations to the Steering Committee, constituted for this purpose, comprising senior HPCL officials and IIM-L faculties.

Earlier, L-INCUBATOR had received nearly 150 applications and after two rounds of screening, 12 applicants were shortlisted and invited for the pitching session, an IIM-L spokesperson informed.

The start-up proposals mainly pertained to the fields of artificial intelligence (AI), data analytics, Internet of things (IoT), solar energy, among others. HPCL Executive Director Rakesh Misri said his organisation was committed to fostering new ideas in the energy sector and promoting entrepreneurship among the Indian youth.

Government to Come up With Credit Guarantee Funds For Startups
Source: India; July 26, 2017

The Government is formulating a Credit Guarantee Scheme for Startups (CGSS) with a corpus contribution of Rs 2000 crores. This will enable the startups to raise loans without any collateral for their business purposes. This scheme will provide credit guarantees up to Rs 500 lakhs per case inclusive of the term loan, working capital or any other instrument of assistance extended by Member Lending Institutions (MLIs) to finance an eligible borrower i.e. a Startup recognised by Department of Industrial Policy and Promotion (DIPP).

This information was given by the Commerce and Industry Minister Nirmala Sitharaman in a written reply in Rajya Sabha today. The schemes will have certain norms and conditions to be followed. Below mentioned are main norms and preconditions of the CGSS:

Scheme will provide benefit to a Startup recognized by DIPP as per Gazette Notifications issued from time to time.

For all resident Directors/Partners, Aadhaar shall be mandatory and for non-resident directors/partners, the passport number shall be a mandatory part of KYC norms.

Member Lending Institutions (MLIs) under the scheme can be Scheduled Commercial Banks and Financial Institutions, RBI registered Non-Banking Financial Companies (NBFCs), SEBI registered AIFs, etc.The scheme will function under the trusteeship management of the National Credit Guarantee Trustee Company (NCGTC).

Scheme shall provide portfolio- based credit guarantee. Each portfolio shall comprise at least 10 eligible start up loans, during a particular Financial Year.

India’s smartphone market contracts for the first time in Q2; Samsung still on top: Canalys
Source: The Indian Express; July 27, 2017

It's the first time India's smartphone market has contracted, according to latest figures from market research firm Canalys. As a result, shipments have fallen by 4 per cent year-on-year to just under 27 million units in the second quarter of 2017. The market research firm says the implementation of the Goods and Services Tax (GST) has also "adversely" affected the domestic growth.

It’s the first time India’s smartphone market has contracted, according to latest figures from market research firm Canalys. As a result, shipments have fallen by 4 per cent year-on-year to just under 27 million units in the second quarter of 2017. The market research firm says the implementation of the Goods and Services Tax (GST) has also “adversely” affected the domestic growth.

Samsung, Xiaomi and Vivo continue to be the primary winners, with the South Korean giant leading the market, with a 25 per cent market share. That’s quite obvious considering the fact Samsung has been chasing the volume game with the Galaxy J series, and to a large extent the strategy worked in favor of the company. Even though Samsung continues to rule the Indian smartphone market, the threat from the Chinese players have increased in the past few months because of their exceptional performance in both online and offline segments.

Xiaomi’s shipment volume reached to 4.8 million units in the second quarter, making it the country’s second largest smartphone brand next to Samsung.

Compiled by IESA Research

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