electronics india e-newsletter · vol. 34, april to june 2016 from chief editor’s desk ... for...

GOVERNMENT OF INDIA

Department of Electronics and Information Technology (DeitY) Ministry of Communications & Information Technology

ELECTRONICS INDIA e-NEWSLETTER

…. For Electronics System Design & Manufacturing (ESDM) Sector

Vol. 34, April to June 2016

From Chief Editor’s Desk

Dear Readers,

The Government of India is on course to achieve manufacturing excellence through the “Make in India” and “Digital India” campaigns which have worked as a catalyst in enthusing the electronics sector in the country.

Significant strides have been made over the last few months with respect to policy initiatives and their implementation for Electronics System Design and Manufacturing. The Modified SIPS is continuously attracting investments. Eight Electronic Manufacturing Clusters (EMC) are under development. The Compulsory Standards Order has come into effect, creating a framework of standards for electronics in the country. The policy to provide preference to domestic manufacturers in Government procurement has been implemented in various Ministries/ Departments /Agencies and details of the same are available on the PMA online monitoring System. Indian Conditional Access System (iCAS) for Set Top Boxes (STBs) has been developed and the number of iCAS embedded STBs has grown fast providing a gainful opportunity for the domestic STB manufacturers. The Electronics Development Fund (EDF) has approved four Daughter funds for final commitment of Rs. 179 crore; twelve Daughter funds have been approved for in-principle commitment of Rs. 510 crore. The cumulative total corpus of these daughter funds is around Rs. 6800 crore.

The overall mood is positive and there is optimism in the air; encouraging potential investors to join the next sunrise industry. This edition of the e-newsletter comes with an improved format & content and we welcome thoughts and feedback of readers with regard to additional items which can be included.

Best wishes Rajiv Bansal

Electronics India e-Newsletter, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

ELECTRONICS INDIA e-NEWSLETTER …. For Electronics System Design & Manufacturing (ESDM) Sector

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Through the Lens

Hon’ble Minister for Communication & IT, Shri Ravi Shankar Prasad, met Ms. Lisa Su, President and CEO of AMD Inc. on 12.04.2016. During the meeting, Hon’ble Minister shared the vision of Digital India and explained the potential that India holds in the field of Fab Manufacturing, an area where AMD Inc. can play a major role. Ms. Lisa Su discussed matters related to semi-conductor policy and conveyed their interest in Fab Manufacturing in India. She also informed that AMD has already tied up with HSMC for chip manufacturing in the country.

Mr. Kevin Kennedy, CEO of Avaya, Mr.Jay Chen, CEO of Huawei India with a delegation of ZTE and Le Eco team met Shri Ravi Shankar Prasad, Hon’ble Minister for Communication & IT on 08.04.2016 at Minister’s office and apprised him of their expansion plans for the country. They expressed assurance in playing a greater role in investment and job creation.



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Through the Lens

South Korean consumer electronics company LG has set-up a smart phone manufacturing plant in Greater Noida. Hon’ble Minister for Communication & IT, Shri Ravi Shankar Prasad launched the company’s first Made-in-India Smartphones the K-7 and K-10 on 14.04.2016 in presence of Shri J.S. Deepak, Secretary, DoT, Shri Rajiv Bansal, Joint Secretary, DeitY and Industry representatives, Sh.Kim Ki-Wan, Managing Director, LG Electronics India & Shri Pankaj Mohindroo, President, ICA.

During the launch, Hon’ble Minister mentioned that the Indian digital ecosystem will become a $1 trillion economy in the next five years with $400 billion contribution from smart phones and electronics manufacturing, $ 350 billion from IT&ITES enables services and $250 billion from Communications services. He further added that LG is a large global brand and with these smart phones, consumers will have access to governance, information and knowledge in the hands.


Through the Lens


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Hon’ble Minister for Communication & IT, Shri Ravi Shankar Prasad, delivered a keynote address at the public forum on ‘Digital India – opportunities for global partnership’ organized by the Indian Embassy in collaboration with Sweden India Business Council (SIBC) at Stockholm on 17.05.2016. He emphasized the importance of Indo-Swedish Economic cooperation and highlighted the Digital India initiatives and Electronics Manufacturing Policy initiatives.

Hon’ble Minister for Communication & IT had a meeting with HE Mikael Damberg, Minister of Enterprises, Innovation and IT of Sweden at Stockholm on 17.05.2016 and proposed to create an Indo Swedish-Fund for Innovation & High-end research and a Separate Institute for Spectrum Management.


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DeitY participated in several Conferences / Seminars and apprised the participants on initiatives taken by DeitY to promote electronics manufacturing and investment opportunities in the sector:

ASSOCHAM National Conference on “Making India a Hub for Electronics Manufacturing” on 07.04.2016 at New Delhi.

Seminar organized by Maharashtra Cable Operator Federation (MCOF) along with CEAMA on

16.04.2016 at Mumbai for creating awareness of Indian Conditional Access System LED Summit and Expo 2016 on 13.05.2016 organized by Messe Frankfurt Trade Fairs India Pvt. Ltd.

at Mumbai. Association of MSMEs in Information Technology (AIM-IT) #ITForParivahan Stakeholders Summit

2016 on 06.05.2016 at New Delhi and 14.05.2016 at Mumbai.

Electronics India e-Newsletter, Room No. 2280, Department of Electronics and Information Technology Ministry of Communications & Information Technology, Electronics Niketan, 6, CGO Complex, New Delhi 110003

Through the Lens


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International Participations

A high level Government/Industry delegation led by Dr. Aruna Sharma, Secretary, DeitY visited Taiwan from 30.05.2016 to 03.06.2016 and participated in COMPUTEX – INNOVEX 2016 events to attract investments in Electronics System Design & Manufacturing Sector.

Apart from participation in COMPUTEX – INNOVEX 2016, the delegation participated in the 2nd India Taiwan Electronics Meet and India Taiwan Cooperation Forum: Smart Technology & Innovation. During the visit, the delegation had one-to-one meetings with leading companies (Foxconn, Delta, D-Link Corporation, AU Optronics Corporation, Infomax, Mediatek, Wistron Corporation, Pegatron, TECO Group etc.) in Taiwan with the objective to attract investment in the electronics sector in the country. Delegation also met Taipei Computer Association (TCA) and Institute for Information Industry (III) in this regard.

The CommunicAsia 2016 International Communication and IT exhibition & Conference and associated “India Connect” event was held during 31.05.2016 to 03.06.2016 at Singapore. An India Pavilion was set up by Telecom Equipment & Services Export Promotion Council (TEPC), wherein 14 Indian companies participated. The event was used as a platform to showcase India as a destination for investment in the electronics sector with the “Make in India”, “Digital India” and “Smart Cities” programmes.

At the sidelines of the event, meetings were also held with the representatives of Singapore Manufacturing Federation (SMF), Singapore Business Federation (SBF) and the Association of Electronic Industries in Singapore (AEIS).




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Modified Special Incentive Package Scheme (M-SIPS):

DeitY’s flagship scheme “Modified Special Incentive Package Scheme (M-SIPS)” was announced by the Government of India in July 2012 to offset disability and attract investments in electronic manufacturing. The scheme provides incentives on reimbursement basis for investments in capital expenditure- 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZS. It also provides for reimbursements of CVD/excise for capital equipment for the non-SEZ units. For some of the high capital investment projects like fabs, it provides for reimbursement of Central Taxes and Duties also.

Status of M-SIPS applications as on 30.06.2016:

Status No. of proposals Investment (Rs in crore)

Applications received 204 1,22,320

Applications approved 75 17,997

Applications under process 78 90,882

Applications recommended 23 2,732

Applications closed / Rejected/ Withdrawn 28 10,709

Highlights of extended MSIPS Scheme(2015):

Extension of MSIPS to additional verticals and revised thresholds Investments from date of Initial application Disbursement of Incentives on a quarterly basis Production subsidy available for specified Electronics Products

The MSIPS scheme is open for receiving application till July 2020. For further details please visit our website: http://deity.gov.in/esdm/incentive-schemes and/or contact Smt. Vandana Srivastava, Director, email: [email protected]


Policies / Schemes

Policies / Schemes


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Electronic Manufacturing Cluster Scheme:

The Government has notified the Electronics Manufacturing Cluster (EMC) Scheme to support creation of world-class infrastructure for attracting investments in Electronics Manufacturing. Assistance for projects in Greenfield Electronics Manufacturing Clusters is provided to the extent of 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land. For larger areas, pro-rata ceiling applies. For smaller clusters, the extent of support is decided by the Steering Committee for Clusters (SCC) subject to the ceiling of Rs. 50 crore. For Brownfield EMCs, 75% of the cost of infrastructure, subject to a ceiling of Rs. 50 crore is provided as grant.

EMC Clusters in India

Status : Under EMCs Scheme, 8 Green field EMCs and 01 Common Facility Center have been approved. In-principle approval has been granted for 16 Greenfield EMCs and 3 Brownfield EMCs.

During April- June 2016, following two Greenfield EMCs were recommended for final approval:

# State Location of EMC Area (Acres) Chief Promoter/SPV

Financial out lay (Rs. in crore)

Project Cost GIA

1

Andhra Pradesh

Village-Cherivi, Satyavedu

mandal,Chittor District

94 Sri City Pvt. Ltd. 56.75 27.34

2 Gujarat Village-Tunda,

Taluka- Mundra, District-Kutch

631.38 Mundra Solar Techno park Private Limited

(MSTPL) 745.14 315.69

For further details please visit our website: http://deity.gov.in/esdm/itir and/or contact Shri Sanjay Kaul (email: [email protected] )



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Electronics Development Fund (EDF):

EDF has been set up as a “Fund of Funds” to participate in “Daughter Funds” which in turn will provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology (IT).

The EDF will create a vibrant ecosystem of innovation, research and development (R&D) with active industry involvement. The policy provides a framework where the decision to support R&D is based on market conditions and through industry professionals well versed with industry requirements. The “Electronics Development Fund Policy” was approved by Cabinet on 10.12.2014, notified on 09.01.2015 and launched on 15.02.2016.

Government has appointed CANBANK Venture Capital Funds Ltd. (CVCFL) as Fund Manager of the Electronics Development Fund. The EDF is now receiving requests from Venture Funds, Angel Funds and Seed Funds in areas of electronics, IT and nano-electronics, which in-turn will provide risk capital to electronics industry.

Status : Twelve Daughter funds has been approved for in-principle commitment of Rs. 510 crore from EDF and four Daughter funds has been approved for final commitment of Rs. 179 crore. The cumulative total corpus of these daughter funds is around Rs. 6800 crore. For further details please visit our website: “http://deity.gov.in/esdm/edf” or contact Shri K. Baskaran, MD, CVCFL, email : [email protected], Fax: +91-80- 25583909


Policies / Schemes


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Policies / Schemes


Preference to Domestically Manufactured Electronic Products (DMEP) in Government procurement:

The Department of Electronics and Information Technology (DeitY) has notified on 23.12.2013 the policy for providing preference to Domestically Manufactured Electronic Products (DMEP) in Government procurement for its own use and not with a view to commercial resale.

The DMEPs are products manufactured by companies registered in India and engaged in manufacturing in India and includes contract manufacturers, but excluding traders. Electronic products to be notified under this policy shall meet the minimum 25% domestic value-addition in terms of Bill of Material (BoM) from domestic manufacturers. The percentage of procurement to be made from DMEP shall not be less than 30% of the total procurement value of that electronic product(s).

The policy is applicable to all Ministries / Departments (except Ministry of Defence) and their agencies for electronic products in Government procurement for its own use and not with a view to commercial resale. The policy is also applicable for procurement of electronic products made under all Centrally Sponsored Schemes and grants made by Central Government. The revised policy guidelines have been issued for providing preference to DMEP in Government procurement vide Notification No. 33(7)/2015-IPHW dated 16.11.2015. Nine generic electronic products, which are procured across sectors, viz., Desktop PCs, Laptop PCs, Tablet PCs, Dot Matrix Printers, Smart Cards, LED Products, Biometric Access Control/ Authentication Devices, Biometric Finger Print Sensors and Biometric Iris Sensors have been notified by the Department of Electronics and Information Technology (DeitY) and 23 Telecommunications Products have been notified by the Department of Telecommunications (DoT), in furtherance of the policy. Directorate General of Supplies and Disposals (DGS&D) has issued guidelines for implementing the policy in their rate contract process.

Status: An Online Monitoring System “www.deity-pma.gov.in” has been operationalized w.e.f. 27.01.2015 for reporting by Ministries / Departments about the compliance of Policy. In this regard, User Ids and Passwords to upload the report on the Online Portal have been communicated to Government Departments.

As on 20.06.2016, fourteen Ministries/ Departments /Agencies have uploaded their compliance reports on the aforesaid portal. So far, the Ministries / Departments have procured electronic products worth Rs.396 crore complying with the Policy for providing preference to DMEPs in Government procurement. For further details please visit our website: http://deity.gov.in/esdm/pma or contact Shri S K Marwaha, Director, DeitY (email: [email protected] )


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Promoting Collaborative Industrial R&D Funding through GITA:

Background: To provide funding and support to Industry and Academic institutions for doing collaborative research, Department of Electronics & IT (DeitY) has approved a proposal submitted by Global Innovation and Technology Alliance (GITA). The project aims to promoteInnovation, IP, R&D and commercialization of productsetc. in the Electronics System Design and Manufacturing (ESDM) sector by providing funding support to an Industry, for doing collaborative research with an Academic Institute in priority areas with a timeline of not more than two years

Three priority areas viz. (a) Large Area Flexible Electronics, (b) Internet of Things (IOT) and (c) Technology for Internal Security are initially being supported by DeitY for funding. A maximum of 9 R&D projects are to be funded under the scheme. The total funding of the project is Rs. 15.6 crore for a period of two years.

The project envisages joint collaboration for bilateral industrial R&D and Request for Proposals (RFPs) have been launched with South Korea, Finland, UK, Spain and Canada. The proposals aiming Innovation, IP and commercialization of products in ESDM, conceptualized by Indian industries/ startups in joint collaboration with industry partners in respective countries, were submitted under the scheme in India through GITA and in respective countries through implementing partners of GITA. The jointly approved proposals are being funded under the scheme with a cap of Rs. 1.5 crore per project.

The RFPs with South Korea, Finland and UK have been closed wherein four, seven and eleven project proposals were received with the respective countries. One proposal each has been recommended jointly for funding under India-Finland and India-UK call for proposals. The Request for Proposal for joint R&D between India & Spain was closed on 17.06.2016 and evaluation of the proposals is ongoing.

The Request for Proposal under India-Canada joint collaborative industrial R&D program is currently ongoing and will be closing on 31.08.2016. Interested participants from the industry in India dealing with the above priority areas may apply under India-Canada joint industrial R&D Program and contact GITA for identification of suitable industry partners in Canada. Details may be viewed on http://deity.gov.in/content/gita.

Three more priority areas viz. Medical Electronics, Strategic Electronics and Micro Electronics Mechanical Systems (MEMS) are proposed to be covered for funding under the scheme. The RFPs would be re-launched with the above stated countries in due course of time.

For further details please visit our website: http://deity.gov.in/content/Gita and contact Dr. Nalin Kumar Srivastava, Scientist-C, DeitY (email : [email protected]).


Innovation Programme


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Innovation Programmes


Electropreneur Park:

The Electropreneur Park, funded by Department of Electronics & IT (DeitY), is the first of its kind Incubation Centre in India in the Electronic Systems Design & Manufacturing (ESDM) sector. It is managed by Software Technology Park of India (STPI); other stakeholders include Delhi University as the Academic Partner and India Electronics & Semiconductor Association (IESA), being the Implementation Agency. The Electropreneur Park will develop, promote, recruit, incubate, mentor and create breakthrough innovations in the ESDM sector. It is equipped with state-of-art facilities to promote ESDM innovation, R&D and create Indian IPs.

The Electropreneur Park at Delhi aims at supporting 50 start-ups working on electronics product design and development and creating 5 global companies over a period of five years. The Electropreneur Park engages in growth of selected start-ups to accelerate their product development. The initiative, with an entrepreneurial and innovation focus, aligns with the ‘Make in India’ and ‘Start-up India’ missions of Government of India.

Reception at Electropreneur Park RF Lab of Electrpreneur Park

The Electropreneur Park has received 203 proposals from various researchers/ start-ups for initiation of their developmental activities.

Electropreneur Park will also facilitate in promotion of the entrepreneurs at various marketing and funding events and ensure the graduation of the entrepreneur to a self-sufficient electronics company.

The Park is already operational and is currently nurturing eight electronics hardware start-ups. These start-ups work mainly in the areas of Power Electronics, Medical Electronics, Strategic Electronics, IOT Wearables, Automobile Electronics and Education Sector. They shall be provided focused entrepreneurship and technical training over a period of 12 to 18 months of incubation.

For further details please contact Shri Himanshu Shekhar, Manager Admi, Electropreneur Park, Phone: 91-8860940000, email: [email protected]


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Innovation Programme

DeitY-BIRAC Industry Innovation Programme on Medical Electronics (IIPME): Industry Innovation Programme on Medical Electronics (IIPME) is a collaborative project between the Department of Electronics and Information Technology (DeitY) and Biotechnology Industry Research Assistance Council (BIRAC), Department of Biotechnology, Ministry of Science and Technology, Government of India.

The project goal is to fund a portfolio of Indian led pilot projects targeting innovations in multi-disciplinary areas comprising of electronics, engineering, medical devices, healthcare, software, algorithms & information technology, to help medical electronics fraternity and to bring in fast pace research and development in this area. The idea is to provide funding support to applicants for testing their bold ideas, mentorship from various subject matter experts, networking platforms and an opportunity to scale up their technology. Under this project support will be provided at Seed, Early transition and transitions to scale stages.

Seed Grants- This is for funding the projects, which are at initial stages of product development cycle. These awards do not require preliminary data and are meant to provide an opportunity to test particularly bold ideas. A grant upto Rs. 50 lakhs for a period of 18 months can be provided in this category.

Early Transition- This category is for projects which have established the proof of concept and require incremental prototype innovations and validation. These awards are for small risk projects which are at the early stages of translational research. A mix of grant & loan not exceeding INR 100 lakhs over the period of 24 can be provided in this category.

Transition to Scale- The stage is for the projects which have already shown promising data on establishing the Proof of Concept and has generated enough validation data, these awards require demonstration of detailed preliminary data and are meant to provide an opportunity to develop, refine, and rigorously test approaches that have previously shown promise in controlled or limited settings. A mix of grant & loans for a period of 24 - 36 months is proposed. The project cost would be matched equally by Government Funds and the industry.

The first call for proposals was announced in the month of June 2015 and fourteen projects have been selected for funding. The programme has again invited proposals from 10.06.2016 and will be open for acceptance till midnight of 10.03.2017. The focus areas of the programme are Imaging & navigation, Technologies for chronic diseases, Convergence of medical device & bioinformatics and increasing the outreach through medical electronics.

For further information, please visit BIRAC website at http://www.birac.nic.in and/or contact Dr.P.K.S.Sarma, Head Technical at [email protected]



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Maker Village™, the Electronics Incubator in Kerala:

Maker Village is a joint venture of Department of Electronics and Information Technology(DeitY), and Government of Kerala through KSUM (Kerala StartUp Mission), IIITM-K (the nodal agency, Indian Institute of Information Technology and Management, Kerala) and Startup Village. Maker Village has a simple objective: provide all facilities to nurture consumer electronics startups, as part of India’s thrust into ESDM (Electronic System Design and Manufacturing). Focus: IoT, robotics and wearables.

The Facility and Equipment:

A 25,000 square foot, state-of-the-art facility has been set up in the Technology Innovation Zone, KINFRA Hi-Tech Park in Kalamassery, Cochin, Kerala. The facility will be equipped with Test and measurement equipment, standard boards (eg. Arduino and Raspberry Pi), ECAD stations, Fab Lab with 3D printers and scanners. The medium-volume SMT (Surface-Mount Technology) manufacturing line, run by a partner, is capable of industry-strength production of Printed Circuit Boards, and is a unique strength of Maker Village.

The incubation process:

The entrepreneur can be engaged in two phases: pre-incubation (idea to proof of concept-3 months) and incubation (concept to prototype-18 months). Later, they are eligible for seed funding, and can be introduced to funds such as Electronics Development Fund and private early stage investors.

Selection, mentorship, advice, acceleration:

Potential candidates can apply at http://www.electronicsincubator.in and are selected after an evaluation by an expert committee. Screening happens on a monthly basis. They are given technical and business mentorship, and provided acceleration through marketing, legal, IPR and finance partners.

Status : Facility ready, some equipment arrived, others on order Four pre-incubatees on-boarded in June 2016, others in pipeline to be inducted Outreach to students, young professionals, subject matter experts, business mentors

For further details, Please visit http://www.makervillage.in or contact: Mr. Rohan Kalani, Director, Operations, Electronics Incubator, Email: [email protected] , Mobile: 95670-90250



Product Specific Initiatives



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Incubation Centre (IC), IIT Patna:

The Incubation Centre(IC) at IIT Patna is focused on ESDM with special focus on Medical Electronics. This IC is joint collaboration of IIT Patna, Department of Electronics and IT(DeitY) and Government of Bihar. The primary objective of IC is to promote innovation and entrepreneurship with the aim to identify, nurture and translate technological ideas and innovation in the broad area of ESDM sector with a focus in Medical Electronics i.e. Micro Electro Mechanical Systems (MEMS: Lab on Chip), Low Cost Medical Diagnostic System, Low Cost Ultrasound, Electronic Device Reliability and Medical/Industrial X-ray Tubes, Medical Telemedicine related Electronic products.

The overall project outlay for setting up the IC is Rs 47.10 crore. The project is planned to be implemented through joint funding from DeitY (Rs 22.10 crore) and Government of Bihar (Rs.25 crore) as matching Grant. This IC is being set up in area of 3000 square meters constructed space with state of the art facilities designated for ESDM incubation.

This IC is expected to give an impetus to entrepreneurship amongst interested students, faculty and external innovators. The total project duration to set up the Incubation Centre is 5 years; the IC aims to incubate 10 ideas each years. In addition to state of art facilities for ESDM incubation, this IC will also provide the following support services:

Business Mentoring: Guidance by Angels, Experienced & Successful CEOs and Industry Veterans on a broad range of topics, including help in identifying suppliers, the appropriate location for the business, pricing of the product, marketing, developing effective business process etc.

IPR Mentoring: Guidance by mentors on IPR Strategy to be followed by the incubatees, in co-ordination with the larger overall strategy of the venture.

Support by Incubator Team: The Incubator team will provide complete support in terms of tracking the progress of the venture, providing research support as and when required and also provide a complete support system for lncubatees.

Identification and negotiation of strategic alliances: Help in development of strategic relationships with key collaborators in related industries in order to increase market penetration, shorten the sales cycle, or develop other strategic arrangements.

The IC is presently procuring the equipments and also looking for proposals from potential incubatees.

For further details please contact Shri Aditya Nataraja, Manager, IC (email: [email protected])


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Product Specific Initiatives

Promotion of indigenous manufacturing of Set Top Boxes (STBs):

Department of Electronics and Information Technology (DeitY) has taken several steps to promote indigenous manufacturing of STBs for Cable/ DTH TV, keeping in view the huge indigenous requirement on account of roadmap for digitalization of the broadcast sector.

M/s. ByDesign India Pvt. Ltd., Bangalore has successfully developed a Conditional Access System (CAS) for Set Top Boxes (STBs) under a project funded by DeitY in November, 2015. The iCAS is available at a price of USD 0.5 per license for all Operators and Set Top Box manufacturers in India for a period of three years with free upgrades and feature enhancement, against market price of USD 4-5 per license for other competing products. The number of iCAS embedded STBs has potential to grow fast and provides a gainful opportunity for domestic STB manufacturers. More than 50,000 STBs with iCAS licenses have already been deployed across the country.

To further facilitate the production of STBs in the country, a reviw meeting was held under the Chairmanship of Shri Rajiv Bansal, Joint Secretary, DeitY on 24.06.2016. The meeting was attended by the officials from Ministry of Information and Broadcasting, DeitY and members of the Consumer Electronics and Appliances Manufacturers Association (CEAMA). A presentation on various steps taken by DeitY to promote indigenous manufacturing of STBs and the incentives available for setting up STB manufacturing facility in India was made during the meeting.

As per CEAMA, the domestically manufactured STBs in India has doubled in the year 2015-16 over the previous year 2014-15 and has reached 9 Million units. It is estimated that in the year 2016-17, the indigenous production of STBs will reach about 15 Million units.

For further details please contact Shri S K Marwaha, Director, DeitY (email: [email protected] ) / Shri Bharat Arora, Scientist-‘B’, DeitY (email: [email protected]) or Shri Jayesh Dubey, Vice President, M/s. ByDesign India Pvt. Ltd. (email: [email protected]).




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Mobile handsets manufacturing sector on a growth trajectory:

India has the second largest wireless network in the world. The country has witnessed a rise in manufacture of mobile handsets during the past decade. Today, the value share of mobile handset industry over the total ESDM (Electronics System Design and Manufacturing) segment in India is estimated at 35% - 40%, which makes mobile handsets’ industry as the largest ESDM vertical. Globally, out of a total $ 2 trillion ESDM industry, the mobile handset vertical occupies approx. $ 450 billion, which makes it as the largest ESDM sector.

Manufacturing of mobile handset essentially consists of assembly of various sub-assemblies, primarily, (i) Printed Circuit Board (PCB) Assembly (PCBA), (ii) Charger/Adapter, (iii) Battery, (iv) Mechanics, (v) Electro-Mechanics (vi) Wired Headsets, (vii) Camera Module and (viii) Display Module. In the budget 2015-16, the government announced differential duty dispensation in favor of domestic mobile handset manufacturers vis-a-vis imports. As a next step, in the Budget 2016-17, the excise duty differential has been extended to the following components/ accessory of mobile handsets: (i) Charger / Adapter, (ii) Battery and (iii) Wired Headsets. These are being charged excise duty of 2% (without input tax credit) and 12.5% with input tax credit, while CVD on imports is 12.5%. Further, inputs; parts; components and sub-parts for manufacture of these goods have been exempted from Basic Customs Duty (BCD), Excise duty/ Countervailing Duty (CVD) and Special Additional Duty of Customs (SAD). This differential excise duty dispensation is proposed to be extended to Mechanics in 2017; thereafter to PCBA, Electro-Mechanics and Camera Module in 2018 and finally to Display Module in 2019.

In 2015-16, mobile handset production reached approximately Rs.54,000 crore compared to Rs.18,900 crore in 2014-15, a growth of approximately 185% in value terms. Mobile handset production in volume terms also witnessed a growth of approximately 85% in 2015-16 and was 11 crore units, compared to production of 6 crore units in 2014-15.

All major brands (both foreign and Indian) either have already set up their own manufacturing facilities or are in the process of doing so or have sub-contracted manufacturing to EMS companies operating from India. Over 30 new manufacturing units have come up with a manufacturing capacity of 20.3 million units per month and providing employment to more than 40,000 persons. These units are located at, Hyderabad, Jammu, Baddi-HP, Medchal-Telangana, Greater Noida-UP, West Bengal, Aurangabad-Maharashtra, Sriperumbudur-TN, Rudarpur & Haridwar-Uttarakhand, Delhi, Kotdwar-UP, Shahibabad-UP, Kundli & Bawal-Haryana.

The total investments made by these companies to set up manufacturing capacities is estimated to be in the range of Rs.400 to 450 crore. Considering the unprecedented growth witnessed in this sector during the past one year, it may only a matter of time before India truly becomes the global manufacturing hub for mobile handsets, its parts, components and accessories.

Special Feature



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BRICS Meeting:

The second BRICS Telecommunications Ministers Meeting is scheduled to be held from 05.10.2016 to 07.10.2016 at Bengaluru, India. This meeting aims to strengthen the ongoing dialogue and provide a platform for exchange of views between ICT Ministers from BRICS members on emerging issues and Digital Economy.

BRICS platform can also be used as a forum to sharing expertise and experiences with regard to ICT usage in governance, financial inclusion, transparent mechanisms for subsidy disbursement, e-commerce, open government, elimination of digital divide, broadband reach to last mile and capacity building.

This meet envisages a B2B meeting on 05.10.2016 and ICT BRICS Working Group meeting on 06.10.2016 and BRICS Telecommunications Ministers Meeting on 07.10.2016.

For further details, please contact Dr. A.K.Garg, Director, DeitY (email: [email protected])

Forth coming Events

Medical Electronics Conference:

DeitY is organizing a 2 day conference focusing on Medical Electronics at IIT-Bombay, Mumbai from 22.09.2016 to 23.09.2016. The event will focus on the crucial role of Electronics in the field of Medical applications. The event is planned to be conducted for encouraging indigenous manufacturing of electronics products in the field of Medical/Health care.

For further details, please contact Mr. Prafulla Kumar, Senior Director, DeitY (email: [email protected] )

India International Trade Fair:

The India Trade Promotion Organisation (ITPO) is organizing the 36th edition of the India International Trade Fair (IITF-2016) from 14.11.2016 to 27.11.2016 at Pragati Maidan, New Delhi. ITPO has chosen “Digital India” as the theme in this edition of IITF. The objective behind setting up the Digital India theme pavilion is to focus on the various programs/products/services being projected under the Digital India Program.

DeitY will be setting up a Digital India pavilion during the event. DeitY’s organizations such as NIC, STPI, CDAC, NIELIT, NIXI, CMET, ERNET, SAMEER will use this platform to showcase the initiatives and achievements under the Digital India Programme. State Governments, UTs and other Government Departments will also participate during the event. In addition, participation from other countries, trade & business organizations across the globe are expected apart.

The first week of the trade fair is open only for business/trade visitors, which includes Senior Representatives/CEOs from global industry, senior state representatives and global buyers and sellers. The second week of the trade fair is open for general visitors.

For further details, please contact Ms. Barnali Mukherjee, NeGD, DeitY (email: [email protected] )



For detailed information on Government of India policies, please visit ESDM page on http://deity.gov.in/esdm

Editorial Board

Chief Editor : Sh. Rajiv Bansal, Joint Secretary, DeitY Member : Dr. Debashis Dutta, Group Coordinator, DeitY Member : Sh. Akhila Chandra Jha, DDG, DGFT Member : Sh. S.K. Marwaha, Director, DeitY Member : Sh. Deepak Sharma, Director, DeitY Member : Sh. G. Prasad, Scientist E, MNRE Member : Dr. R. C. Chopra, Sr. Advisor, CII Editor : Sh. N Samaya Balan, Scientist D, DeitY

electronics india e-newsletter · vol. 34, april to june 2016 from chief editor’s desk ... for...

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