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  IESA WINWire July 8, 2017 - July 14, 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.

India gets G20 praise on ease of doing business, startup funding, labour reforms
Source: The Economic Times; July 9, 2017

Acknowledging steps being taken by India for sustainable and inclusive growth as well as support to global economy, the G20 has praised the initiatives in the country for promoting ease of doing business, startup funding and labour reforms.

In its Hamburg Action Plan, adopted at the G20 Summit of leaders from the world's 20 largest economies, the group also noted that "in the financial sector, India is popularising a number of derivative instruments in exchanges or electronic trading platforms" as part of measures to enhance resilience of its economy.

It further said India is facilitating external commercial borrowings (ECBs) by startups in order to encourage innovation and promote ease of doing business, as part of the efforts being taken by the G20 members this year for maintaining momentum on structural reforms and sustainable growth.

On steps being taken by G20 countries for promoting inclusive growth this year, the Action Plan said India is introducing labour market reforms to provide security to workers, increase female participation in the workforce and make doing business easier in the country.

The acknowledgement from the G20 Summit, which was attended by Prime Minister Narendra Modi among other world leaders, assumes significance in the wake of India trying hard to improve its global ranking for ease of doing business.

The World Bank ranked the country at a low 130th position last year, an improvement of just one position from the previous year.

SLN Technologies bags ‘India Today Make in India Emerging Entrepreneur Award 2017’ under ‘Defence & Aviation’ category
Source: Electronics Maker; July 10, 2017

SLN Technologies, India’s leading electronics system design and manufacturing (ESDM) company, was honored with the India Today SLN-Technologies-award Make in India Emerging Entrepreneur Award 2017 in the category ‘Defence & Aviation’

“At SLN Technologies, we strive to grow and excel with innovation in sync with the ‘Make in India’ vision. We have been serving the Aerospace & Defence industry for the last 21 years and supporting Defence public sector units like HAL, BEL, ECIL, DRDO and BDL in various prestigious projects’ said Anil Kumar Muniswamy, Managing Director, SLN Technologies. “Our culture of quality, integrity, teamwork and value for people inspires each of us to bring our best to work. It helps us leave a lasting impression with our work as well.

The India Today Make in India Emerging Entrepreneur Awards were instituted in 2016 to recognize Indian businesses, entrepreneurs in the Small & Medium Enterprise (SME) segment for their outstanding achievements, sustainable growth / contributions in select categories, employment generation capacity and for promoting economic and social initiatives. It is now one of most sought after Awards in India.

The distinguished jury comprising of eminent luminaries such as – India Today’s Editor-in-Chief Aroon Purie, Sanjay Nayar, Member & CEO of KKR India ; Kiran Mazumdar Shaw, Chairman and Managing Director of Biocon; Baba Kalyani, Chairman of Kalyani Group; Manish Sabharwal, CEO, TeamLease and Uday Kotak, Chairman , Kotak Mahindra – nominated the winners for the 2017 Awards after intense deliberations.

Technology, innovation needed for higher growth rate: Niti Aayog CEO Amitabh Kant
Source: The Times of India; July 10, 2017

A Harvard study has projected a dramatic fall in China's economic growth in the coming decade and said India would perform extremely well growing at 7.72 per cent during the period. India's premier think-tank, the National Institution for Transforming India or Niti Aayog, too seems confident that an eight per cent growth rate can be achieved by the country.

"Government has made a huge amount of investment in railways, in roads. Look at the growth in civil aviation, shipping, in terma of MUDRA loans and the credit guarantee scheme for small and medium enterprises. All these sectors have grown and blossomed. While the government's investment has grown, it's important to revive private sector investment in India. The government investment will lead to a rise in demand and in over a period of time you'll see many more private companies investing in India," Niti Aayog's CEO Amitabh Kant told in an exclusive interaction.

Kant, a key driver of initiatives like 'Make in India', 'Startup India' and 'Incredible India', believes that young people should be job creators and not job seekers and they should be disrupting India's society. For this, the Niti Aayog has planned the Atal Innovation Mission to promote a culture of entrepreneurship in India. "This endeavour seeks to make India far more dynamic and vibrant society so that we have startups driving this and manufacturing happening here. Without technology, without innovation, without breakthrough, it would be very difficult for India to grow at a higher rate," Kant said.

India ahead of China for a decade: Harvard University
Source: India Today; July 10, 2017

According to the Harvard University's Centre for International Development (CID) growth projections, "India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics."

China's economic expansion rate dropped from 6.7 per cent (2016) to 4.4 per cent and will continue for the coming decade making India the fastest growing economy till 2025 with an average annual growth of 7.7 per cent, says a new study by Harvard University.

There are various reasons behind this. Countries are divided into three basic categories:

Countries with too few productive capabilities to easily diversify into related products

Countries that have enough capabilities that make diversification and growth easier, which include India, Indonesia and Turkey. Advanced countries such as Japan, Germany and the US that already produce nearly all existing products.

Thus, any major progress will require pushing the world's technological frontier by inventing new products -- a process that implies slower growth.

Factors affecting the growth rate of China - The growth rate of China which was rapid earlier has now decreased because of the decline in its exports. According to the Harvard University's Center for International Development (CID), China's rapid growth rate over the past decade has narrowed the gap between its complexity and its income. China's economic complexity ranking also falls four spots for the first time since the global financial crisis.

Electronics manufacturing projects of Rs 75,000 crore near approval
Source: DNA; July 11, 2017

The Ministry of Electronics and Information Technology (MeitY) is close to approving two mega projects for manufacturing in electronics worth Rs 75,000 crore under its modified special incentive package (MSIP) scheme, a senior official in the ministry told DNA Money.

However, the name of the companies whose projects will be approved could not be ascertained.

MeitY, which has set the goal of zero net imports in the electronics sector by 2020 and is seeing a large number of investment proposals, also plans to ask the government for extending the cap on subsidy provided for MSIPs, the official said.

Currently, the cap has been fixed at Rs 10,000 crore for subsidy under MSIP but the ministry wants it increased as the number of proposals received till now have exceeded expectations, according to a senior ministry official who refused to be named.

From June 2014 till now, 248 applications have been received with investments of about Rs 145,030 crore. Out of this, only 87 proposals worth Rs 19,440 crore have been approved, the data from MeitY shows.

While another 121 projects worth Rs 24,304 crore are under evaluation, some 12 projects worth Rs 784 crore have been recommended for approval. About 51 applications, with investment proposal for Rs 3,8253 crore, have been rejected.

For about a year no project was approved as the finance ministry had raised some concerns over the scheme, calling it open-ended.

Decks cleared for Dhirubhai Ambani Aerospace Park
Source: The Hindu; July 11, 2017

Construction activity at the Dhirubhai Ambani Aerospace Park at Mihan, Nagpur, is set to kick start by the end of this month, with the Commerce Ministry giving its approval for developing the park.

Reliance Defence is looking to invest ?6,500 crore in the park. The facility is set to host the first ‘Make in India’ defence project, since it will be home to the Dassault-Reliance Aerospace joint venture. France’s Dassault Aviation and Reliance Defence have teamed up in a 49:51 stake joint venture, to carry out the obligations and execute the ?30,000-crore offset programme related to the sale of 36 Rafale fighter jets.

The park will also be home to the largest defence sector foreign direct investment (FDI) in the country, with the French aircraft manufacturer slated to bring in the first tranche of FDI amounting to ?200 crore by the month-end.

On July 3, the Ministry of Commerce granted approval to the Anil Ambani-led Reliance Infrastructure arm Reliance Aerostructure as a co-developer of the park, confirmed a senior executive. The Maharashtra Airport Development Company is the nodal agency for developing the aerospace park.

A senior executive told BusinessLine that manufacturing at the site will start by the end of this year with the last approval falling in place. Some 50 people have already joined the company.

Foxconn aims to kick off exports from India to Gulf, Africa by Dec
Source: The Economic Times; July 11, 2017

Foxconn, the world's largest contract manufacturer, is aiming to begin exports to the Middle East and African countries by December from India as it begins talking to suppliers to set up base in the fastest growing smartphone market in the world.

The Taiwanese phone and electronics maker is stepping up expansion of its manufacturing facility in Sri City, Andhra Pradesh, while scouting for more locations including Tirupati in the same state, besides states of Tamil Nadu, Maharashtra and Delhi NCR. If the plan fructifies, Foxconn would be much ahead of Samsung's target of exporting from India by 2020.

"Foxconn will begin exporting by December, could be earlier. They will have reasonable capacity to export. To begin with, exports will be to Middle East and Africa," said a person aware of the company's strategy in India. "Over the next year or so, Foxconn is aiming for its suppliers to set up base here so they can feed into the local production chain which it will create for exports".

Part of the volumes may well come from Mukesh Ambani-owned Reliance Jio. Foxconn is talks with Reliance Jio to make the much-awaited 4G Volte feature phone in India. People aware of Jio's plans say the first lot of nearly 18-20 million is likely to be brought in from original equipment manufacturers (OEMs) in China.

C’garh Gets More Investment In Electronics, Food Processing Sectors
Source: The Pioneer; July 12, 2017

The Chhattisgarh Government has signed four Memorandum of Understandings (MoUs) involving a total investment of Rs 386 crore across electronics and food processing sectors.

This investment would create over 2,800 employment opportunities in the State and would give new employment avenues to the local youth, officials informed.

‘Make in India’ has been key catalyst for attracting new investments in the State. Government of Chhattisgarh has taken focused approach which includes ease of doing business, development of world class industrial infrastructure and enacting business friendly policies to facilitate business and investment in the State.

Chhattisgarh has always been one of the preferred States in the country for business and investment but so far most of the investments have been made in core sectors like mining, steel, aluminium, cement etc. Chhattisgarh has a huge potential for non-core sectors like electronics, food processing, engineering, solar equipment etc which are to being promoted as strategic sectors in the State. New sectors like electronics have got new boost with approval of Electronics Manufacturing Cluster (EMC) in Naya Raipur. Government of Chhattisgarh also had recently launched Sanchar KrantiYojana (SKY) in which 45 lakhs smart phones will be distributed to youth and women in the State. Under SKY 1700 mobile towers will also be set up for providing mobile connectivity to all parts in the State.

The MoUs with Smartron India Pvt. Ltd., Forstar Techno Solutions Pvt. Ltd., Wattson Electronics have been inked by the Government of Chhattisgarh for investment in electronics sector.

Restriction likely on import of items that hit local companies
Source: The Economic Times; July 12, 2017

India is looking to impose restrictions and standards on products where imports have replaced domestic production, an attempt to give a push to 'Make in India' programme and reduce the widening trade gap. The commerce department has instructed various ministries to analyse data and compile lists of products which are being produced domestically but losing market share to imports.

The Bureau of Indian Standards (BIS) has been assigned the task of setting standards that will have to be met by imported goods as well as goods manufactured in the country. "We need to do an analysis of the deficit before putting any technical restrictions because there are certain areas where we do not have domestic production," said an official aware of the development.

Medical devices, solar cells, ceramics, plastic wares and toys, among other products, may be subjected to mandatory standards in the future as the government attempts to control India's large trade deficit.

Most line ministries, especially those which have a regulatory role such as textiles and health, along with the industry department, have been asked to prepare a list. The government wants to impose standards, compliance with which will be mandatory for both domestic and imported goods – called 'national treatment' in trade parlance.

India-Israel CEOs Forum fortifies defence agreements
Source: The Hindu; July 12, 2017

The first India-Israel CEOs Forum, recently hed at Tel Aviv, has brought to the fore 12 strategic defence agreements related to radars, anti-ship missiles, air defence systems, as well as UAVs.

While major corporates such as Kalyani Group, Mahindra Aerospace, Dynamatic Technologies and Elcom took the lead inking agreements to manufacture an expanded range of niche technology products for the military, smaller firms like Alpha Design Technologies, a direct supplier of defence equipment to the armed forces, and Garware Wall Ropes, a technical textile manufacturer, were also in the fray.

Israel’s Elbit Security Systems has also announced its intention to increase its stake in the joint venture with Alpha Design Technologies, from 26 per cent to 49 per cent.

Alluding to other agreements that will be announced over the coming months, since the forum had chieftains from “both countries eager to team up and cater to the defence sector,” sources said Israel was eager to provide advanced technology solutions with its satellites, missiles, weapon systems and munitions, and unmanned and robotic systems.

The 12 agreements announced last week will propel the Make In India programme for defence companies. Sources said the previous reciprocal State visit by Israeli President Reuven Rivlin to India following that of President Pranab Mukherjee’s visit to Israel last year, had laid the seeds towards strengthening economic ties between the two countries.

Cabinet apprised of India-Palestine IT, electronics pact
Source: Economic Times; July 12, 2017

The Cabinet, chaired by Prime Minister Narendra Modi, was today apprised of the agreement signed between India and Palestine on cooperation in information technology and electronics.

"The MoU shall come into effect from date of signature of the parties and shall remain in force for 5 years. The MoU shall be implemented by establishing a working group on IT and electronics composed of representatives of the two parties," an official statement said.

Under the agreement, both countries will look at promoting closer cooperation in e-governance, m-governance, e-public services delivery, cyber security, software technology parks, start-up ecosystem and the like.

"India has strong political support to the Palestinian cause at international and bilateral levels. India has been contributing material and technical assistance to the Palestinian people. The MoU on cooperation in the field of IT&E was initiated during the first session of joint commission meeting in November 2016," the statement said. After several negotiations, the draft MoU was finalised and signed in May 2017.

"Bilateral cooperation in ICT (information and communications technology) domain in both B2B (business to business) and G2G (government to government) will be enhanced. It envisages improving B2B collaboration leading to employment opportunities," the statement said.

India should target 1 lakh startups in 5 years with a $75 bn valuation: NITI Aayog CEO
Source: Money Control; July 12, 2017

The need to focus on innovation and improving the ease of doing business took centre stage at the 16th edition of Young Turks here in Delhi.

In a session titled “Startup India 2.0,” government and private stakeholders came together to discuss what ails and works in favour of the Indian startup ecosystem.

“Our target should be to have 100,000 startups in the next five years with a valuation of USD 75 billion,” said NITI Aayog chief executive Amitabh Kant, setting the stage for a discussion that included him, Karnataka’s IT minister Priyank Kharge, one of India’s IT services industry architects Pramod Bhasin, Department of Industrial Policy and Promotion secretary Ramesh Abhishek, and Helion Ventures founder Sanjeev Aggarwal.

Taking the stage, Kharge spoke abut the initiatives Karnataka government has taken to help foster a vibrant startup ecosystem. “We have matured as an IT services economy. Now, the aim is to be thought leaders in new & emerging technologies,” he said.

He also spoke about the recently announced Elevate 100 programme to boost the startup ecosystem in the state. “As part of Elevate, Karnataka government will go to tier 2 and3 towns, curate 1,000 startups and elevate 100 of them,” he said.

Kant encouraged Indian startups to start building products not just for the domestic but foreign markets too.

The rise of small entrepreneurs in India
Source: Livemint; July 13, 2017

Small and medium enterprises (SMEs) account for over 95% of establishments and over 80% of jobs in the manufacturing sector in India. They are becoming increasingly prevalent and affect everything from poverty levels and shared prosperity to the allocation of activity in the economy and beyond.

However, our understanding of the drivers of SMEs is still at an early stage. Are the SMEs concentrated in tradable or non-tradable sectors in India? How do SMEs connect into global and local supply chains and input-output networks? What role has sub-contracting played in the growth of SMEs? Is urbanization helping or hurting them? Is it push or pull entrepreneurship that is driving SMEs? Are SMEs gender-inclusive? We examine these issues using data on SMEs from 900 districts in India.

India’s employment growth in the manufacturing sector displays two under-appreciated facts. First, much of the employment growth has come in the form of small establishments in the tradable sector. While it may not be surprising that manufacturing employment growth has followed from the improved connectivity and trade reforms, the degree of imbalance towards SMEs and tradable sectors is. The rapid urbanization of SMEs appears to be the most important factor. Essentially all of the net employment growth in Indian manufacturing over the past two decades occurred in urban areas.

Made-in-India smart TVs help Arjun Bajaj build Daiwa a Rs 10cr business
Source: Your Story; July 13, 2017

Ernst and Young says the television market in India – pegged at Rs 75,000 crore currently, will be Rs 1,30,500-crore-strong by the end of this decade

The year was 2015. Summer rain was falling in Colchester, England, and an entrepreneur in the making was at university in the former capital of Roman England.

Arjun Bajaj, the scion of one of the largest TV manufacturing companies in India, was wondering how he could add value to the family’s 34-year-old electronics business. While he was away, e-commerce portals like Amazon, Flipkart and Snapdeal had gained a toehold in the Indian retail industry. They had given traditional entrepreneurs a chance to discover online sales channels.

But where others saw a solution, Arjun perceived a problem. Most brands selling electronics on these channels sourced the final product from China. Among the popular brands were Intex and Micromax, but the irony was that their products were assembled in the factories of Videotex International, a Noida-based company set up by Arjun’s father, Vinay Bajaj. Videotex is one of India’s premier LED television ODM/OEM companies.

“I spent a year in the factory building relationships with existing brands. I wondered why we could not make our own TVs in the country, especially since most brands assembled their product with us,” says Arjun.

Compiled by IESA Research

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