Sunday, April 16, 2017

Make In India - Electronics Engineering Components and Products



http://www.elcina.com/  -

http://www.iesaonline.org/



Technology from NRDC, India available for commercial production
http://www.nrdcindia.com/english/index.php/technology-management/2014-05-20-04-58-53/electrical-electronics









Excerpts from Make in India Site


​The electronics market of India is one of the largest in the world and is anticipated to reach USD 400 billion in 2020. The market is projected to grow at a compound annual growth rate (CAGR) of 26% per cent during 2014-2020.




Top 10 electronic products by total revenue:

mobile phones,
flat panel display TVs,
notebooks,
desktops,
digital cameras,
inverters / UPS,
memory cards/USB drives,
EMS/LCD monitors
servers.


Expected market size for major electrics sub-sectors in India by 2020:
Telecom Equipment (USD 34 Billion).
Laptops, Desktops, Tablets (USD 34 Billion).
LED (USD 35 Billion).
Consumer Electronics (USD 29 Billion).
Set Top Boxes (USD 10 Billion).
Automotive Electronics (USD 10 Billion).
Medical Electronics (USD 8.5 Billion).


3rd largest pool of scientists in the world.
USD 29 Billion consumer electronics market by 2020.
USD 94.2 Billion – demand projected by 2015.
9.88% industry growth rate between 2011-15.
2 government-driven incentives – National Knowledge Network & National Optical Fibre Network.


STATISTICS
The Indian ESDM industry was estimated to be worth USD 68.31 Billion in 2012 and is anticipated to be worth USD 94.2 Billion by 2015 with a CAGR of 9.88% between 2011-15.

Growth Drivers

65% of the current demand for electronic products is met by imports.

Huge consumption in the Middle East and in emerging markets such as North Africa and Latin America.

GOVERNMENT POLICIES :

Electronics Manufacturing Clusters Scheme (EMC).
Skill Development Scheme.


Supply Facilities

Semiconductor Wafer Fabrication (FAB) manufacturing facilities being set up in India in Uttar Pradesh and Gujarat with a total investment of USD 10.5 Billion.

Human Resources - Skilled Personnel
3rd largest pool of scientists in the world.

SECTOR POLICY
NATIONAL POLICY ON ELECTRONICS (NPE) :
NPE’s vision is to create a globally competitive electronics design and manufacturing industry to meet the country’s needs and serve the international market.
The objective is to build an ecosystem for a globally competitive ESDM sector in the country by attracting investment of about USD 100 Billion and generating employment for 28 Million people at various levels.
The ultimate aim of the policy is to develop core competencies in strategic and core infrastructure sectors like telecommunications, automobile, avionics, industrial, medical, solar, information and broadcasting, railways, intelligent transport systems, etc.
A number of state governments have also defined policies in electronics.
Other important policies include the National Telecom Policy and the National Manufacturing Policy.


PREFERENTIAL MARKET ACCESS :
Preference to domestically manufactured electronics goods in government procurement.
Extent of government procurement from domestic manufacturers will not be less than 30% of the total procurement.


http://www.makeinindia.com/sector/electronic-systems-design/




Additional Information


India is one of the fastest growing markets for electronics.

The demand is projected to reach USD 400 Billion by 2020.

Electronics Industry - India - Policy, Plan and Programmes  - 8 Jan 2014 In the report at that time demand is forecasted at USD 400 billion and called for production in India of apprx. USD 300 billion.  For comparison purpose, Output of China is $823.6 billion in 2010 (http://iaesjournal.com/online/index.php/TELKOMNIKA/article/viewFile/2854/pdf      )

Page providing information regarding important study reports, presentations and other document regarding important policy initiatives regarding electronic items in India
http://deity.gov.in/esdm/policies



Status of Electronics Manufacturing in India
Dec 2016 Report

India  is home to the second-largest user base for smartphones at 220 million,  and on track to hit 500 million in the next five years.

Under the make in India policy, over the past 18 months, 40 new domestic assembly units and 12 new component or accessory manufacturing units were set up.  Research outfit Counterpoint thinks that at least 180 million mobile phones will be assembled in the country out of a total of 267 million phones sold here in 2016.


 But,  Indian companies will produce the $11 billion worth of components going into 267 million phones (which utilize $80 billion worth of components). This is only  6 percent compared to 70 percent in China and 35 percent in Vietnam.

The indigenisation programme can be taken up in three phases. Phase 1 focus will be  things like batteries, chargers, cable, and housing locally; phase 2 manufacturing will be  displays and cameras; and phase 3 semiconductor components generated by local fabs. Regarding fabs, government is involved in negotiations and even announcements regarding setting up the factories have been made.

http://www.zdnet.com/article/india-makes-some-gains-in-electronic-manufacturing-but-faces-a-long-arduous-road-ahead/


Make in India - Strategy for Electronic Products  - Draft released in May 2016

http://niti.gov.in/writereaddata/files/document_publication/Electronics%20Policy%20Final%20Circulation.pdf

Electronics  industry  is  among  the  largest  and  fastest  growing  manufacturing Industry  in  the  world.  The  total  Electronics  Equipment  Production  of  the  world during  the  year  2014  was  estimated  to  be  around  US$  2.0  trillion.

Production shares of various segments are:

Computer Systems and Peripherals (26.6 percent)
communication equipment (21.7 percent),
Consumer Electronics (12.6 percent),
Instruments  (10.7%),
industrial  equipment  (9.5  percent)
Equipment  for Government / Military (8.8 percent).

Over  the years,  production bases have shifted
from USA and EU to Asia and the latter’s share in global production  has increased to
over 60%.

Electronics Industry  is conventionally divided into six  segments. The production (revenue) share of each of these segments are
 Indian Electronics Industry Revenues by Segment 2014-15

Segment                   $Billion               Percent
Consumer electronics      9.1                         28
Electronic components    5.1                         16
Industrial Electronics      5.6                          17
Computer Hardware        1.7                            5
Communication & Broadcast Equipment  9.5  29
Strategic Electronics        1.7                            5
Total                               32.7                        100

In  several  countries,  the  controbution  of  electronic  industry  to  GDP  is  significant.
For  example,  it  contributes  15.5%  to  GDP  in  Taiwan,  15.1%  in  South  Korea  and
12.7% in  China.  But in India, this proportion is only 1.7%.

Initiatives in the country

Skill Development
There have been large-scale initiatives to create skilled manpower to achieve  targets  of
1,500 Ph.D.  in  Electronics Sector Design and Manufacturing  (ESDM)  and  another  1,500
Ph.D.  in  Information  Technology  and  Information  Technology  Enabled  Services
IT/lTES)  per  year  by  2020.  The  scheme  for  setting  up  seven  new  Electronics  and  IT
Academies  has  been  approved  and  the  Special  Manpower  Development  Program  for
VLSI and Chip Design has also been approved. Financial assistance to the states/UTs for
skill  development  and  vocational  training  has  been  approved  with  a  target  of  400,000
individuals in the ESDM sector.


Turnaround time  of ships at ports averages two to three days  compared with 8 to 12 hours at Hong Kong  and Singapore.  Transporting internally from production location to destination port can
take a long time—14 days from Delhi to Mumbai, according to one estimate.

Real  wages  in manufacturing in China have been rising at 10% per year since 2007. In 2014, they
stood at more than Rs. 5 lakh  per year. These increased wages are rendering China uncompetitive in employment-intensive  activities.

Coastal Eport Zones may be set up with more liberal policies.

It would be worth considering a  ten-year  tax  holiday  for  a  firm  that  invests  a  substantial  pre-specified  sum  and generates  a  large  pre-specified  volume  of  direct  employment.   For  example,  the investment  threshold  may  be  set  at  $1  billion  and  employment  at  20,000.

News - Electronics Manufacturing in India


2017


Government has set a roadmap for local manufacture of mobile components
http://tech.economictimes.indiatimes.com/news/mobile/government-sets-roadmap-for-local-assembly-of-mobile-phones-parts/58427634

Television sales is expected to touch Rs. 1,30,500 crores  by 2020.
(The Economic Times article on 31 January 2017)

India’s television market is expected to grow at CAGR of 15.5 per cent to reach US$ 15.2 billion in 2019.
http://www.ibef.org/industry/entertainment-presentation  accessed on 1 February 2017.

https://www.techsciresearch.com/news/2008-india-television-market-to-cross-9-billion-by-2021.html

http://www.prnewswire.com/news-releases/india-television-market-forecast--opportunities-2021-techsci-research-report-59457http://www.prnewswire.com/news-releases/india-television-market-forecast--opportunities-2021-techsci-research-report-594573561.html

Summary of Budget 2017-18 for Electronics Industry

1.  Promotion of  manufacturing of  Point of Sale (POS)  and other Digital  Payment
Devices: POS devices and all goods for manufacture of POS devices, subject to actual
user condition,  were exempted from Excise Duty  /  Countervailing Duty (CVD) vide
Notification  No.35/2016-Central  Excise  dated  28.11.2016.  These  exemptions  which
were  valid  till  31.03.2017,  have  been  extended  up  to  30.06.2017  vide  Notification
No.6/2017-Central Excise dated 02.02.2017.

Following  goods  and  parts/  components  for  use  in  the  manufacture  of  these  goods,
subject  to  actual  user  condition,  have  been  exempted  from  Basic  Customs  Duty
(BCD),  Excise  Duty  /  CVD  and  consequently  Special  Additional  Duty  of  Customs
(SAD)  vide  S.No.408A  of  Notification  No.6/2017-Customs  dated  02.02.2017  and
S.No.256C of Notification No.6/2017-Central Excise dated 02.02.2017, respectively:
(i)  Micro ATMs as per standards version 1.5.1;
(ii)  Fingerprint reader / scanner;
(iii)  Iris scanner;
(iv)  Miniaturised  POS  card  reader  for  mPOS  (other  than  Mobile  phone  or  Tablet
Computer).

2.  Promotion of  manufacturing  of  LED (Light Emitting Diode)  Lights:  BCD  on all
parts for use in the manufacture of LED lights or fixtures including LED lamps  has
been reduced to 5%,  subject to actual user condition. BCD on all inputs for use in the
manufacture of LED driver or MCPCB (Metal Core Printed Circuit Board) for  LED
lights and fixtures or LED lamps has also been reduced to 5%, subject to actual user
condition.  Notification  No.12/2012-Customs  dated  17.03.2012  as  amended  vide
Notification  No.6/2017-Customs  dated  02.02.2017  [new  S.  Nos.410A  &  410B
respectively] refers.
Concessional  Excise  Duty  /  Countervailing  Duty  (CVD)  @  6%  applicable  to  LED
driver  and  MCPCB  for  use  in  the  manufacture  of  LED  lights  and  fixtures  or  LED
lamps  has  been  extended  to  all  parts  for  use  in  the  manufacture  of  LED  lights  or
fixtures including LED lamps,  subject to actual user condition. This 6% concessional
Excise  duty  will  be  valid  till  30.06.2017.  Notification  No.12/2012-Central  Excise
Page 2 of 2
dated  17.03.2012  as  amended  vide  Notification  No.6/2017-Central  Excise  dated
02.02.2017 [S.No.321A] refers.

3.  Promotion of  manufacturing of Solar Cells and  Modules:  BCD  on solar tempered
glass or solar tempered (anti-reflective coated) glass for  use in  manufacture of solar
cells  /  panels  /  modules  has  been  reduced  from  5%  to  NIL,  subject  to  actual  user
condition.  Notification  No.12/2012-Customs  dated  17.03.2012  as  amended  vide
Notification No.6/2017-Customs dated 02.02.2017 [S. No. 305A] refers.
Excise Duty exemption on solar tempered glass for use in the manufacture of (a) solar
photovoltaic cells or modules;  (b) solar power generating equipment or systems;  (c)
flat  plate  solar  collectors;  and  (d)  solar  photovoltaic  module  and  panel  for  water
pumping  and  other  applications  has  been  withdrawn  and  6%  concessional  Excise
Duty has been extended on such solar tempered glass, subject to actual user condition.
This  6%  concessional  Excise  Duty  will  be  valid  till  30.06.2017.  Notification
No.12/2012-Central  Excise  dated  17.03.2012  as  amended  vide  Notification
No.6/2017-Central Excise dated 02.02.2017 [S. No.187C and S. No.332 A] refers.
Excise Duty has been reduced from 12.5% to 6% on parts / raw material for use in the
manufacture of solar tempered glass for use in (a) solar photovoltaic cells or modules;
(b) solar power generating equipment or systems;  (c) flat plate solar  collectors; and
(d)  solar  photovoltaic  module  and  panel  for  water  pumping  and  other  applications,
subject to actual user  condition. This 6% concessional excise duty will be valid  till
30.06.2017.  Notification  No.  12/2012-Central  Excise  dated  17.03.2012  as  amended
vide Notification No.6/2017-Central Excise dated 02.2.2017 [new S. No.187D] refers.
4.  Promotion  of  manufacturing  of  Populated  Printed  Circuit  Boards  (PPCBs)  of
Mobile  Phones:  PPCBs  of  mobile phones  have  been  excluded from the purview of
Nil  SAD.  Notification  No.21/2012-Customs  dated  17.03.2012  as  amended  vide
Notification No.4/2017-Customs dated  02.02.2017  [S.  No.1]  refers. Simultaneously,
2%  concessional  SAD  has  been  extended  to  PPCBs  for  use  in  the  manufacture  of
mobile phones, subject to actual user condition. The concessional SAD will be valid
till  30.06.2017. Notification No. 21/2012-Customs dated 17.03.2012 as amended vide
Notification No.4/2017-Customs dated 02.02.2017 [new S. No. 85B] refers.





2016


October 2016
http://www.ibef.org/industry/manufacturing-sector-india.aspx

http://www.maiervidorno.com/indian-electronics-industry-growth-healthy-pace-consumer-electronics/

http://www.nasscom.in/nasscom-perspective-2025-shaping-digital-revolution




March 2016

India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and The National Association of Software and Services Companies (NASSCOM), today signed a Memorandum of Understanding (MoU) to enable India in becoming a leading player in the next era of ESDM and IT.

25% of country’s GDP by 2025 from IT and ESDM
http://www.nasscom.in/iesa-and-nasscom-partner-speed-%E2%80%98make-india-and-digital-india%E2%80%99-agenda-esdm-and-it



Jan 2016

On 13 January 2016, China - India Mobile phone and component manufacturing summit is taking place and 80 Chinese companies are participating in it.


The telecom industry is expected provide 7 lakh new job opportunities in the next five years (by 2020), a top telecom skill development group said in its assessment that it has submitted to national planning committee NITI Aayog.

Of the total workforce in the sector, the retail and handset segments will employ 35%, service providers 29%, network and IT vendors 18%, telecom gear manufacturing 15% and infrastructure providers 3%, according to its estimate.
http://economictimes.indiatimes.com/industry/telecom/telecom-sector-to-generate-7-lakh-new-jobs-in-five-years/articleshow/50505375.cms



Electronics Manufacturing with the aim of Zero Net Imports - A Pillar of Digital India Policy - Details
http://www.digitalindia.gov.in/content/electronics-manufacturing



2 Feb 2015
Shri Ravi Shankar Prasad, Union Minister wrote in an Times of India article that India consumes up to $100 billion in electronics every year, most of which is imported.


14 Feb 2015

One billion dollar Analog Wafer Fab MOU

IESA (India Electronics & Semiconductor Association) enabled the Memorandum of Understanding (MoU) between US-based Cricket Semiconductor and the Government of Madhya Pradesh for an analog fab proposed to be set-up in the state. The proposed investment is expected to be Rs 6000 crore ($1 BILLION) to set up an analog wafer fab in the country.

The creation of this fab ecosystem coupled with the products and systems value chain is expected to create close to 4,50,000 new jobs, making a potential future economic impact of $40 billion, over its project life span and reduce electronics import burden for the nation.
http://www.firstpost.com/business/us-based-cricket-semiconductor-plans-set-rs-6000-crore-analog-chip-fab-india-2098659.html



The government expects to double the export of telecom equipment and services to $10 billion (Rs 62,000 crore) in the next five years (14% growth rate).

Current telecom export is Rs 32,000 crore (Rs 320 billion), about Rs 20,000 crore (Rs 200 billion) comes from equipment and products and Rs 12,000 crore (Rs 120 billion) from telecom services such as consultancy projects.

Telecom Equipment and Services Export Promotion Council promotes  export of telecom equipment and services.
http://www.rediff.com/business/report/telecom-export-to-double-in-5-years-says-govt/20150214.htm



December 2015

Investment in the electronics manufacturing sector has jumped over six-fold in a year to reach Rs 1.14 lakh crore by December 2015

The turnover of consumer electronics during the year 2014 was Rs 45,000 crore and during 2015 it is likely to be Rs 50,000 crore.
http://articles.economictimes.indiatimes.com/2015-12-31/news/69427004_1_electronic-manufacturing-clusters-1-14-lakh-crore-december-2015




2010

Employment Potential of Electronics Sector in India


It is estimated that around 16.1 million people will be directly employed in the industry by 2014 and 27.8 million by 2020, as compared to the current 4.4 million. According to the report on Manpower for electronics industry, the concentration of manpower is in the manufacturing segment followed by after sales and sales support. R&D on the other hand employs the least number of people. Regulations relating to over-time and contracts also need to be revamped to meet the highs and lows of demand. Hence, the government needs to focus proactively on skill development. The recent report on ‘Human Resource and Skill Requirements in Electronics and IT Hardware’ by the National Skill Development Mission may be referred to in this regards.

Electronics Industry - India - China - USA - World Comparison

India

India is one of the fastest growing markets for electronics.

The demand is projected to reach USD 400 Billion by 2020.

Electronics Industry - India - Policy, Plan and Programmes  - 8 Jan 2014 In the report at that time demand is forecasted at USD 400 billion and called for production in India of apprx. USD 300 billion.


China

For comparison purpose, Output of China is $823.6 billion in 2010 (http://iaesjournal.com/online/index.php/TELKOMNIKA/article/viewFile/2854/pdf      )


USA


World

Related Information

International Competitiveness in Electronics

Competitiveness of Indian Electronics and IT Hardware Industry
NPC 2010 Report
http://nmcc.nic.in/pdf/ithardware_03july2010.pdf

1983 USA report
https://books.google.co.in/books?id=PWHa1jDUSdQC





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Updated 29 April 2017, 16 April 2017



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