From the Editor’s Desk India Transition: A Breeze of Change The twenty first century will be remembered nomic, cultural and spiritual leadership for 1500 years for the rapid changes in technology every bit during the most recent past. The same DNA is at work as much as the political upheavals that changed the with the notion of ‘the world is one family’, and inclinedcourse of business between countries. In fact, such has to make India a world power again.been the speed of development of new products and India conceived to become a manufacturing hub in 2014.devices that it is often easy to become ambivalent about The gestation period seen to end sooner than later. A fewtechnological advance. However, inventions are of such reforms are still at the loggerhead. The ability to thinklife-changing significance that they make everyone sit up as one nation, the concept of nation first, bureaucraticand become need of the industrial community. indifference or at best the greed, social and politicalThe third edition of Spotlight on Indian Electronics is dynamism are still at arm’s length. Government policiesdesigned to highlight the key markets, policies and other alone fall short until we reform ourselves in the individ-information that affect gaining and sustaining compet- ual capacities in respect to the soft character enumerateditive advantage explores the exciting world of business. above.The book opens and analyses the market studies and Though purchase parity is a mirage in capitalist econo-technological trends and its evolution that the industry my, yet the Government is contemplating to double thehas traversed through as well as some informed specula- forming income by 2022. The first step has been takention as to the future prospects of the course of business. by offering one and half times of agriculture produceThe book also harness the attributes of knowledge base as Minimum Support Price to the farmer. A lot moreeconomy to create compelling value propositions that steps are needed to strengthen the agrarian economyenable to build global businesses. by increasing the purchasing capacity of 65% of popula-Today is an interesting time to study business. Advances tion. The money ultimately will come to the market forin technology are bringing rapid changes in the ways we circulation.produce and deliver goods and services. There is a huge The purpose of compiling ‘Spotlight’ is to tell the worldpossibility that you would come to a true understanding about India’s policies, growth potential and the successof the new global business environment or the mind set story of 12.5 million Indians. So, brace up for high-volt-of an entrepreneur simply by reading the current market age events on the trade front in the coming days.scenario and trend globally.Looking back at the economic reforms and infrastructur- Devendra Kumaral progress, the country has certainly taken a big leap. New Delhi Print Media Group PublicationsCurrent Government’s political will and decision making [email protected] reflect at all levels - be it political, social andeconomic at national and international platforms.India is experiencing second transition after 1990s,where all out reform is at the agenda. India has seen eco-Spotlight on Indian Electronics 2018-19 | 10

A Note from the Publisher...O ut of the hundreds of acknowl- national markets and burning issues and other useful edgements at least one acknowl- information make Spotlight a truly useful book. edgement made me cry with joy. We are pleased to announce the launch of our brand This one acknowledgement, ‘This new website. The new site launch is available at URL book is the need of the hour’ is www.sieindia.com. The new website is interactive and so moving inside that satiates the gives better access to provide our visitors an easier very purpose of the book. The way to learn about Electronics Industry in India, its spontaneous sense of thankful- positioning in the world, government policies to boostness to all industry colleagues contains quite serious the industry, other fiscal and infrastructural measuresemotions overwhelmed with a sense of fulfillment. taken by the Government and study and analysis of Indian and global industry segments. Amongst theWith pride and appreciation I welcome the third new features, the site contains integrated social mediaedition of the Spotlight of Indian Electronics-2018-19. buttons for Facebook and Twitter, to foster improvedThe editors, and all the contributing authors have done communication with the clients. We hope you find thea sterling job of producing the significant and timely new website with a fresh look, easy to access infor-book on Indian Electronics. Exploring the aspirations mation and we also wish to establish this portal as acomponent of transiting business is the subject of source of information.the book that consider ways in which business pro- Digital edition of Spotlight is another unique feature. Ascesses might be fostered, together with expectationsAn Investment in Books Pays the Best Interestof knowledge and education designed to improve it is difficult to send print copy to a number of coun-achievement through knowledge based initiatives. tries - for it incurs heavy expanse, we have decidedDid you ever wonder why Apple flourished while so to go digital. The digital editions of Spotlight featuresmany start-up failed? You might conclude that it was interactive elements and can be browsed, downloaded,the company’s products, its people, loyal customers, bookmarked and hyperlinked searching and incorpo-luck, and being at right place at the right time, man- rates multimedia such as video. Amazon Kindle and the iPad is also available for reading. agement’s willingness to take risk or Steve Empowering companies and individuals to be effec- Jobs. Perhaps the most important tive in the market requires the adequate information statement that can be made about and understanding about industry and trends. Many the Apple’s success is the combina- companies have limited approach to such information tion of these options. which is a marker for vulnerability and a risk factor for Indian Electronics is at the juncture profit outcomes. where we have to have thousands of Providing valuable information is no longer farfetched such start-ups with the combination as it is free for all. of these options. Sprawling business and global approach require the Your’s Truly knowledge outreach as a first component to succeed. Shailesh Shukla Spotlight on Indian Elec- Publisher tronics is unique and has a New Delhi Print Media Group Publications number of firsts to its credit. Content on policies, business and market, market analysis, blue chip companies, inter- Spotlight on Indian Electronics 2018-19 |12

KNOWLEDGESECTION

NDEXKnowledge Section17 National Policy for Electronic Component Manufacturing 2.027 Indian Economy: Growth Rate and Statistics45 Electronics India: An Overview53 Make in India: Electronics Manufacturing59 Manufacturing Sector in India FDI in India63 Union Budget Infrastructure Sector in India6669 Spotlight on Indian Electronics 2018-19 | 16

National Policy onElectronics2.0

NPE 2.0National Policy forElectronic ComponentManufacturingRecommendations for NPE 2.0Policies for promotion of electronics manufacturing have been manufacturing will sustain if duty benefits are allowed to continue over formulated with a long term vision but their implementation has time with increasing value addition under a PMP program. lacked the same tenacity and a long term sustained approach for promoting high value added manufacturing. A suitable Challenges for Component manufacturing in India policy must support large investments in manufacturing facilities for raw materials, parts, components and PCBA/EMS for electronics. This 1. Allowing zero duty imports of inputs/components for the assembly is the segment of the ESDM value chain where there is concentration of high volume and high growth products such as mobile phones, PoS of technology and requires R&D, IP creation and continuous and Machines, Micro ATM’s, Set Top Boxes etc. has depressed growth consistent investments if we want to create a resilient value chain in the in demand of components and discouraged new investments in the country. This is the only way to reduce our dependence on imports and segment. also reduce the insecurity and uncertainty which accompanies it. 2. Tedious process and obligations to avail benefits under Cust. Notif. The electronics manufacturing sector can be broadly classified into 25/99 on inputs for the manufacture of components. three tiers: 3. High Cost of Finance becomes a greater disadvantage with greater • Finished Products value addition • PCB Assembly / EMS 4. Duty Free imports of PCBA’s reduce the demand for domestically manufactured PCB & components. • Components, Parts & Raw Materials 5. Existing eco-system of component manufacturing in the country Component manufacturing lacks global scale and capability and thus remains uncompetitive. A strong component manufacturing base in the country is a pre- A two pronged approach to encourage high value added requisite for a self-reliant ESDM sector in the country. In the recent past, manufacturing: the focus of policy makers is on manufacturing of electronics products irrespective of the degree of value addition. Majority of inputs such as 1. Provide differential duty benefits/BCD protection to assembly of parts, Sub-Parts, Components are allowed for import at zero or minimal equipment, specially high volume products such as Mobiles, Tablets, duty. This policy has encouraged low value added manufacturing/ Set Top Boxes, POS Machines etc under a 5 year PMP program with assembling but simultaneously has stymied the growth of the existing graded increase in Value addition component manufacturing base and FDI in the sector. 2. Distribute components into ITA-1 and Non-ITA-1 categories and Large Foreign or Domestic investments in electronic component provide 10-20% protection. manufacturing will happen only if India offers a cost advantage in component manufacturing. It is argued that low value added A. Industry & ELCINA recommendations to encourage electronics manufacturing would result in investments in component components manufacturing: manufacturing due to demand pull. However, even low value added a. Fiscal Incentives 1. Divide components into ITA-1 and Non-ITA 1 categories and further into two categories of below 30% Value Addition and >30% Value Addi <30% VA and 15-20% protection with >30% VA. SpotligShpt ootnligInhdt ioann IEnldeicatnroEnlieccstr2o0n1ic8s-1290|181-819

NPE 2.03. Denial of Input Tax Credit in GST Regime: The credit on Capex subsidy under MSIPS scheme. The value addition is the lowest atCGST content charged on the import of finished equipment should product level, higher at component manufacturing level and highest at Semiconductor and ATMP level. The MSIPS Capex subsidy grading isCategory Value Add Target Support Recommenda- recommended as follows:Non-ITA-1 compo- >30%VA tionsnents Sl. No. Electronic Item VA Range MSIPS Subsidy 15% BCD 15%, In- 1 (%) come Tax Holiday 20Non-ITA-1 compo- <30% VA 10% BCD 10% , In- Product 10-20%nents >30%VA 20% come Tax HolidayITA-1 Components 2 Component 20-50% 30 Income Tax Holiday; , 3 Semiconductor/ >50% 40 Disallow ATMP CGST Credit to importer of 5. MEIS Benefits proposed to ensure adequate support: these compo- nents Refund of Sl. No. Electronic Item MEIS Incentives (%) CGST paid on 1 Product 3 local inputs to manufacturer 2 Component 5 of these compo- nents 3 Semiconductor/ATMP 7 Income TaxITA-1 Components <30% VA 15% Holiday; , Disallow CGST Credit to im- 6. Production Subsidy/OPEX benefits: This provision has been porter of these introduced under the MSIPS Scheme vide notification of 3rd August components 2015 including high value added items such as semiconductor wafering, logic microprocessors, IC’s and added new components such as PCB,not be allowed. This will encourage local manufacturing of electronic discrete semiconductors fab, Power Semiconductors Fab and ATMP etc.equipment by making the imported items costlier. Further, the CGST This provides for a 10% Production Subsidy on the value addition by thepaid on domestically manufactured inputs (Raw Material, Components, manufacturing unit. Thus higher the value addition, higher the subsidyIntermediate goods) used in manufacturing by these finished equipment and vice versa. Production Subsidy should be extended to include allmanufacturers should be refunded. This will incentivize purchase of components & raw materials which are covered under ITA-1 and aredomestically manufactured inputs/components. A list of selected items subject to Zero Customs Duty.has been annexed keeping in mind the production possibilities in thecountry. Refer Annexure 1(Electronic Equipment), 2 (Components) and 3 OPEX benefits based on value addition will go a long way in enabling manufacturing of electronic components.Category Value Add Target Support Recommenda- tions 7. Benefit through Direct Tax: Finance Cost, Energy Cost and Logistics/ Transportation are the three main measurable contributors to disabilityNon-ITA-1 >30%VA 15% BCD 15%, costs. It is recommended that weighted deduction in respect of Interestcomponents 10% Income Tax paid, Power cost and Freight in proportion to the disabilities is provided 20% Holiday for as a deduction in Profit Before Tax (PBT). These are auditable costsNon-ITA-1 <30% VA BCD 10% , and are included in Statutory Financial Statements of companies. Thuscomponents Income Tax allowing deduction of twice the cost incurred while computing taxable Holiday income would set off 2/3rd of the disability cost assuming 33% CorporateITA-1 Compo- >30%VA Income Tax Hol- Income Tax.nents iday; , Disallow CGST Credit to 8. Deemed export status for the manufacture of ITA-1 items:ITA-1 Compo- <30% VA 15% importer of thesenents components a. Special Imprest License/ Duty considerations and Advance Refund of CGST Intermediate License paid on local inputs to manu- b. Deemed Exports Drawback Scheme i.e, on the Deemed Exports, facturer of these Drawback at the rate fixed by the Ministry of Finance for the goods which components are physically exported. Income Tax Hol- iday; , Disallow c. Refund of terminal CGST (earlier it was excise duty) ie., CGST if any CGST Credit to paid, on the goods supplied under Deemed Exports is refunded importer of these components d. In respect of supply of capital goods to EPCG license holder, the supplier shall be entitled to the benefits stated above except, however,(ICTE & Security Products) for list of products. that the benefit of Special Imprest License or Deemed Export Drawback Scheme shall be available only in case of supplies made to Zero duty4. Capex subsidy under MSIPS: It is a well-documented fact that EPCG license holder.disabilities increase with value addition. ELCINA proposes three slabs of e. Export incentives/benefits under Foreign Trade Policy Schemes (MEIS) a. Measures to Increase Demand of Locally Manufactured Components 9. Electronic Components must be excluded from all future FTA’s and try to identify remove them from existing FTA’s 10. PCB Assemblies for non-ITA-1 equipment should be subjected to 10% customs duty. The Input Tax credit should be disallowed on CGST paid on import of these PCB assemblies. Spotlight on Indian Electronics 2018-19 | 20

NPE 2.0 premium price and run short of working capital. the imports over the 3 - 6 month credit period.11. India is a signatory of ITA-I due to which 19. 3-4 Specialized EMC’s should be planned • Hence, the Indian industry prefers to import217 tariff lines along with all items/parts/sub- to establish the eco-system for components. components and equipment rather than buyingparts used in their manufacture are allowed at These EMC’s could individually focus on from the domestic manufacturers.zero customs duty. To prevent the decline and high volume and high growth componentenable viability of ESDM manufacturing in India groups such as PCB’s, LED’s, Sensors, • Once the manufacturing facilities are set-upa BCD of 15% should be imposed on all non Wound Components, Switches and Relays. To as stated above, the components can beITA -1 items. encourage manufacturers, specialised testing procured locally and substantially reduce import and R&D/Prototyping facilities should be dependence.12. Strict implementation of PMA/PPO Scheme provided in these Clusters.and inclusion of more equipment under the • It is proposed that Central Government shouldScheme is essential to drive domestic demand. 20. Government campaigns such as Digital extend Credit Default Guarantee coveringThe list of items may be expanded after due India should be used to spur domestic 25% of the value of the sale of domesticallydeliberations with industry stakeholders. manufacturing capacities: Demonetisation manufactured components and electronicJudicious inclusion of manufacturing processes created a demand for PoS machines and Micro products for a tenor of 3 - 6 month period andand assemblies/components for qualifying for ATM’s. Bharat Net, Smart cities, IoT, Electric support local manufacturers by incentivizingPMA/PPO benefits will result in driving local vehicles initiative etc. are big government purchase of their components/products.manufacturing and value addition. programs which boost the demand for electronic hardware. Advance planning to B. Recommendations for Printed13. In the scheme the condition of L1 is launch these programs would help in boosting Circuit Boards Manufacturingimpossible to meet by domestic manufacturers domestic electronics manufacturing rather thansurviving with various identified disabilities. depending on imports. PCBs are the backbone of Electronics IndustryComputation of L1 should be done considering and are required in all electronic products.disabilities for domestic manufacturers and 21. Credit Default Guarantee for Electronics To boost electronic manufacturing in theprovide them a 5-10% cushion. They must Manufacturing country it is important to have adequate PCBget favourable payment terms to reduce their manufacturing capacity that meets the needfinance costs. • Electronic Manufacturing industry is facing of the industry at competitive prices thereby challenges to set-up electronics manufacturing preventing excessive dependence on imports.14. Incentivising “Design in India”: facilities in India because of high cost of At present almost 80 to 85 % of country’s PCB investment involved and lack of adequate credit requirements are met through imports.15. The Make in India campaign can only facilities.be successful when the thrust will be on The main reasons for the low share of“Design in India”. This will drive demand • Most of these machinery is required to be indigenous production are as follows:for indigenous components/PCBA’s and imported. Considering the significant amountassemblies. Imported designs drive demand of investment involved, procurement has to be • Large Capital investments required forfor imported components and assemblies, and done on credit basis; either by availing bank setting up PCB manufacturing unit, inhibitingmakes dependent on imported components loans / bank guarantee. manufacturers to set up new units, especially fordetermined by the customer/owner of the multilayered PCBs, which are expected to growdesign. • The banks in India require at least 100% at a significant rate. of the loan / guarantee amount as collateral16. Set Top Boxes are a major manufacturing for extending credit facilities. Such collateral • Inverted duty structure, as inputs foropportunity and need special attention and requirement poses challenges for growth and manufacture of PCB’s are subject to 5 to 10%protection from unfair imports through FTA hence, there is a need for the government to Customs Duty while PCBs attract Nil duty underroutes, specially ASEAN. Indian manufacturers enable banks / financial institutions to extend the ITA-1.are competing with highly adverse financing credit default guarantee for facilitating import ofby Chinese suppliers and this itself gives a 10- capital goods. • Lack of availability of skilled labor15% cost benefit to Chinese imports. Supportthrough policy and Quality Certifications/BIS will • Electronics equipment funded through a loan • Lack of availability of raw materials like, purefurther help in promoting local STB industry. from banks / FI’s for a tenor of 4 - 5 years for grade silicon, Copper laminates, required for which the Investor shall pay an upfront amount fabrication of the printed circuit boards.A. Promoting Eco-System for High of 20% of the total value. The Government ofValue Added Manufacturing India shall extend Credit Default Guarantee for • Lack of availability of raw materials at 50% of the total value covering the entire tenor competitive prices.17. Electronic Component Manufacturing of the loan.Fund: A dedicated fund for the development • Lack of access to new technology and stateof Component Manufacturing ecosystem • This credit default guarantee shall be of the art capital equipmentshould be floated. This fund may be on the extended to the financial institutions / bankslines of EDF and/or as a separate Venture who provide the lease Fiscal Supportfund with government’s equity and monitoringmechanism. This Venture Fund should be • Credit Default Guarantee for Domestic Sale The main reason for lack of large investmentseligible for Income Tax breaks on its earnings of Electronic Products and Components. This in PCB manufacturing is that PCB’s are subjectand thus provide low cost capital to high value will go a long way in boosting investments in to zero BCD under ITA-1 and most PCBA’sadded electronics manufacturers. Electronics Manufacturing. are also imported at zero duty. Cost of imports from China and other leading countries such18. Component oriented EMC’s: High Cost • Similarly as there is inadequate ecosystem as Taiwan and Korea are attractive and thereof Land has always been a hindrance for in India for components, hence 70-80% of all is abundant availability of all types of PCB’s,investments in Component manufacturing. components and even final electronic goods specially the multilayer and high end ones.ELCINA recommends a dedicated EMC policy are imported. Currently, the importers offor component manufacturing supported with components enjoy 3 - 6 months credit from Thus local equipment manufacturers prefer toEMS companies. This should be on a PPP Chinese exporters. Such facility has been import PCB’s as well as PCBA’s where costsmodel, where land will always remain with the enabled by SINOSURE, the China government are lower and lead times are short. Designinggovernment provided on favourable long lease owned insurance company to promote exports. and prototyping of PCB’s is done quickly interms in favour of manufacturers. This will allow China, Taiwan etc and this is another factormanufacturers to invest in manufacturing rather • This helps the importers as a working capital favouring imports.than engaging in the acquisition of land at a bridge to realize cash and effect payments for Large Investments in PCB manufacturing will happen only if local manufacturing is incentivised. The following recommendations will go a long way in boosting local Spotlight on Indian Electronics 2018-19 | 22

NPE 2.0manufacturing of PCB’s : bits etc. Some of these items will require air- CKD model of equipment manufacturing. conditioned and deep freeze environment dueI. Capex Subsidy under MSIPS or similar to shelf life issues. In view of the above, EMS needs specialScheme must be provided and threshold attention in our ESDM policies and eco-system.should be reduced to Rs 2 Crores so that VII. Skilled manpower is required for PCB It has the highest and imminent potential forMSME’s too can benefit and expand. The manufacturing and the industry is labour growth well in excess of 20-25% per annum andpresent threshold of Rs 5 Crores is high for intensive hence provides large scale opportunity an EMS industry of about US$ 30 Billion in nextSmall Units. MSIPS should be extended to for employment at post school, ITI & diploma 5 years.manufacturers of inputs for PCB’s as these are level educated workforce.not manufactured locally. Make in India can be a reality only if the VIII. Capital Equipment for PCB Manufacturing investor is reasonably assured of profitability.II. Opex Subsidy either by way of 10% is largely imported and maintenance is a At present this is not the case and it is muchProduction Subsidy on value addition or refund major challenge and cost due to dependence safer and easier to import or at best follow theof IGST paid on inputs for a period of 5 years to on foreign suppliers and technicians. Local SKD assembly model. This needs to changethe extent of Capital Investment. technicians need to be trained for maintaining urgently if we want to reduce our dependence high precision PCB manufacturing equipment on imports and also reduce the insecurity andIII. As BCD cannot be imposed on PCB’s, an to avoid excessive downtime and cost and uncertainty which accompanies it.alternative is to disallow credit of CGST portion ensure good quality sustainable manufacturing.(9%) of GST imposed on imported PCB’s Support for skilling of manpower is important The electronics manufacturing sector can be and a key part of the PCB eco-system. broadly classified into three tiers:IV. Impose 10% BCD on all imported PCBA’sfor non-ITA-1 electronic equipment. This will Policy Recommendations for • Components, Parts & Raw Materialsencourage local PCB assembly/population and EMS Industryboost demand for local PCB’s. • PCB Assembly / EMS Introduction & BackgroundV. MEIS benefit of 7% for locally manufactured • Finished ProductsPCB exports (the present 2% is too low) Electronic Manufacturing Services (EMS) or Electronic Contract Manufacturing is a well- Each segment of the value chain above isVI. Phased Manufacturing Programs are established business model for the Electronics characterized by different levels of Valuebeing prepared for a number of high volume Industry worldwide. Addition and requirement of Capital andElectronic Equipment and this will drive Technology. India needs to pay heed to thesedemand for local components. PCB’s and PCB The expanding functions which EMS is factors and make its policies accordingly. EMSAssembly should be given special focus and delivering in the electronics value chain has a key role in enabling Make in India in theeligibility benefits in these programs so that include component assembly, engineering & ESDM sector and its growth would galvanisePCB’s are sourced locally and PCB assembly is design of printed circuit boards, sub-assembly the entire value chain including components,done locally under these programs. manufacturing, and functional testing offered raw materials and design. by contract manufacturers, are subsequently(Note: Recommendations made above in expected to drive the contract manufacturing RecommendationsSection [B] are relevant for PCB also]. services market growth. 1. Import Duty on Populated PCB’sEco-System Support through PCB The EMS model is driven by a contract (Assembled Boards): Zero duty importManufacturing Zones/Clusters manufacturer’s ability to specialize in of PCBA’s discourages value addition in economies of scale in production, industrial ESDM sector in India. This also inhibits theThere is a need to set up at least one large PCB design expertise, raw materials procurement, manufacturing of Components in the country.Cluster in India to establish the eco-system for and pooling resources along with offering value- ELCINA recommends that 10% BCD should bethis critical component: added services such as warranty and repairs. imposed on all PCBA’s (other than ITA-1 items) These allow OEMs to avoid having tedious or to encourage value addition in the country andI. Sustainable PCB manufacturing requires good complex large-scale industrial operations. growth of EMS sector.quality water & power in abundant quantity. It isnecessary for the government (whether state or The global electronic contract manufacturing PCBA’s used for the manufacture of Set Topcentral) to provide infrastructure at subsidized and design services market size was valued at Boxes, Inverter AC’s, Solar, Wind energycost to the industry and the following key USD 348.2 billion in 2016. equipment and other electronic finished goodsfacilities should be provided: should be identified and protected from any By working with EMS companies, customers further FTA’s.II. Good quality and quantity of water. PCB can vary their cost structure, reduce workingrequires plenty of water during manufacturing. capital requirements, and lessen the time 2. Threshold Limit for EMS vertical to market. On account of these factors, the in MSIPS Policy: MSIPS has been anIII. Generates pollutants which need to be electronic contract manufacturing services important and attractive policy for invitingtreated through a high cost effluent treatment market is expected to gain traction and also investments is ESDM sector. However it hasplant before it is discharged in the common increase its share in the ESDM value chain. faced some challenges in implementation anddrains. The manufacturing cluster should needs tweaking of the Scheme to make it moretherefore have a centralised incoming water Varying estimates regarding size of the EMS effective and achieve its objectives.treatment unit as well as ETP at the discharge industry in India have been presented byside. different research agencies. These range Presently, the threshold investment limit for from as low as US$ 4Bn to US$ 15Bn during availing MSIPS benefits for EMS vertical is INRIV. PCB manufacturing also generates the period 2016 to 2017. As per industry 10 cr. This is high in comparison to averagesignificant solid waste needs to be transported assessments, a realistic estimate of the current stand-alone investments in the sector. ELCINAto approve land fill site. The land fill site needs size of EMS industry in India would be ~US$ recommends that this threshold limit for EMSto be provided by the State Government. 9-10 Billion. This is about 20% of the total ESDM vertical for MSIPS benefits should be reduced manufacturing in the country and highlights the to a reasonable limit of INR 5 Cr. This will helpV. PCB manufacturing is a semi-continuous importance of EMS segment. For India, EMS in encouraging the investments in the sector,power intensive industry. Continuous, adequate has a special role to play as a driver of demand enable MSME’s to participate and expansion of& good quality power is necessary for for components, support design of equipment, existing EMS companies.successful operations. increase value addition and generate employment as we move up from the SKD to 3. Phased manufacturing program:VI. The PCB Cluster must have a centralisedwarehousing facility for imported inputs like PMP has yielded satisfactory results in thelaminates, prepregs, copper foil, photopolymer mobile phones manufacturing sector and hasfilms & photo-tools, solder mask inks & drill promoted SKD level manufacturing. Spotlight on Indian Electronics 2018-19 | 24

NPE 2.0ELCINA recommends that similar PMP will go a long way in boosting investments in and process.programs should be announced for LED Electronics Manufacturing.Lights, Set Top Boxes, Inverter AC’s, Security An equally effective way to use GST to promoteEquipment along with various other electronics A. For Components, PCBA’s and Electronic domestic manufacturing would be to refundequipment as identified by stakeholders of Products: (For Export) the CGST paid on domestically manufacturedESDM Industry. To qualify as a domestic inputs (Raw Material, Intermediate goods,product, VA norms need to be defined • Similarly as there is inadequate ecosystem PCBA’s.) used in the domestic manufacturing ofrealistically and increased within a time frame of in India for components, hence 70-80% of all electronic equipment.3-5 years to reach minimum 50%. components and even final electronic goods are imported. Currently, the importers of 8. Export of electronics Items:Encouraging EMS through PMP programs is components enjoy 3 - 6 months credit from Government is all set to encourage exports ofvital as been proposed under the PMA Policy Chinese exporters. Such facility has been electronics item. ELCINA recommends somewhere the entire value of locally populated enabled by Sinosure, the China government steps to encourage export of electronics items/PCB’s are taken as domestic value. This will go owned insurance company to promote exports. components:a long way in promoting EMS. • This helps the importers as a working capital a. Increase in MEIS benefits from existing 2%4. Provision of Interest Equalisation bridge to realize cash and effect payments for to 5%.to compensate the high cost of the imports over the 3 - 6 month credit period.finance in the country: b. Allow use of MEIS scrips to pay CGST/IGST • Hence, the Indian industry prefers to import as the same were utilized to pay CVD/Excise inReserve Bank of India vide Cir. No. components and equipment rather than buying the Pre-GST tax regime.1/13.05.000/2015-16 dt 11th February 2016 has from the domestic manufacturers.announced “Interest Equalisation Scheme on c. Benefit of Direct Tax for the profit made byPre and Post Shipment Rupee Export Credit”. • Once the manufacturing facilities are set-up exporting electronics items/components.Similar scheme has also been announced as stated above, the components can beby DoT (Department of Telecommunication) procured locally and substantially reduce import 9. Deemed export status to domesticvide Circular No.18-34/2013-IP. Dt. 28th dependence. manufacturing of ITA-1 items: ITA-1October 2016, these schemes are offered has caused severe harm to the domesticto the exporters of selected items. Domestic ELCINA recommends that Central Government manufacturing of electronics items in themanufacturing also saves/earns forex by means should extend Credit Default Guarantee country. Zero duty imports of these items fromof import substitution. covering 25% of the value of the sale of the countries which have various advantages domestically manufactured components and such as Economy of scale, Low cost ofInterest equalization should also be offered to electronic products for a tenor of 3 - 6 month Finance, Better technology and significantthe domestic manufacturers of all ITA-1 items period and support local manufacturers by support from their governments have become(including PCBA’s) on deemed export basis. incentivizing purchase of their components/ a major challenge for local manufacturers products. discouraging investment in the sector. ELCINA5. Credit Default Guarantee for recommends that deemed export status shouldElectronics Manufacturing 6. Production Subsidy: Provision for a be given to the domestic manufacturing of ITA-1 10% Production Opex Subsidy on the value items in the country.A. For Capital Goods: (For Purchase of Capital addition by the manufacturing unit has beenEquipment) introduced under the MSIPS Scheme on 3rd August 2015 including high value added items.• Electronic Manufacturing industry is facing Urgent implementation of this is recommended.challenges to set-up electronics manufacturingfacilities in India because of high cost of ELCINA further recommends that thisinvestment involved and lack of adequate credit Production Subsidy is extended to includefacilities. all components and raw materials which are covered under ITA-1. EMS companies are• Most of these machinery is required to be playing a vital role in the ESDM Value chain.imported. Considering the significant amount They encourage local manufacturing, valueof investment involved, procurement has to be addition and demand for local componentsdone on credit basis; either by availing bank and raw materials/parts. It is recommended thatloans / bank guarantee. output from EMS companies is included in this Production Subsidy.• The banks in India require at least 100%of the loan / guarantee amount as collateral NOTE: ELCINA recommends that OPEX basedfor extending credit facilities. Such collateral incentives should be considered in addition torequirement poses challenges for growth and CAPEX based incentive offered under MSIPS.hence, there is a need for the government to The OPEX based incentive may be availableenable banks / financial institutions to extend year after year for up to 10 years and ensurecredit default guarantee for facilitating import of sustained competitiveness of the industry andcapital goods. this incentive should be value addition based. The subsidy may be tapered off thereafter.• Electronics equipment funded through a loanfrom banks / FI’s for a tenor of 4 - 5 years for 7. Recommendations on GST towhich the Investor shall pay an upfront amount support domestic manufacturingof 20% of the total value. The Government of vis-a vis Imports: ELCINA has beenIndia shall extend Credit Default Guarantee for recommending that in order to discourage50% of the total value covering the entire tenor import of complete products and PCBA’s, theof the loan. credit on CGST content charged on their import should not be allowed. This will encourage• This credit default guarantee shall be manufacturing of indigenously manufacturedextended to the financial institutions / banks electronic equipments by making the importedwho provide the lease. items costlier. However, it is not clear as to whether this is permissible under the GST Act• Credit Default Guarantee for Domestic Saleof Electronic Products and Components. This Spotlight on Indian Electronics 2018-19 | 26

Indian Economy:Growth Rateand Statistics

Indian EconomyIndianEconomy:Growth Rateand StatisticsIStagtnthirdsoetiiwawcshionOargslrdmegmaaasnjeopirsregareetidctohonaens(oCtCmheSenyOtfiar)nasatlensdtInternational Monetary Fund (IMF)and it is expected to be one of thetop three economic powers of theworld over the next 10-15 years,backed by its strong democracy andpartnerships.Market size: India’s gross domestic product (GDP) grew by 6.3 of disclosing their spending on corporate social responsibility (CSR),per cent in July-September 2017 quarter as per the Central Statistics according to a 49-country study by global consultancy giant, KPMG.Organisation (CSO). Corporate earnings in India are expected to growby over 20 per cent in FY 2017-18 supported by normalisation of profits, • The bank recapitalisation plan by Government of India is expected toespecially in sectors like automobiles and banks. push credit growth in the country to 15 per cent.The tax collection figures between April-June 2017 Quarter show an • India has improved its ranking in the World Bank’s Doing Businessincrease in Net Indirect taxes by 30.8 per cent and an increase in Net Report by 30 spots over its 2017 ranking and is ranked 100 among 190Direct Taxes by 24.79 per cent year-on-year, indicating a steady trend of countries.healthy growth. The total number of e-filed Income Tax Returns rose 21per cent year-on-year to 42.1 million in 2016-17 (till 28.02.17), whereas • India’s ranking in the world has improved to 126 in terms of its perthe number of e-returns processed during the same period stood at 43 capita GDP, based on purchasing power parity (PPP) as it increased tomillion. US$ 7,170 in 2017.India has retained its position as the third largest startup base in the world • The Government of India has saved US$ 10 billion in subsidies throughwith over 4,750 technology startups, with about 1,400 new start-ups being direct benefit transfers with the use of technology, Aadhaar and bankfounded in 2016, according to a report by NASSCOM. accounts.India’s labour force is expected to touch 160-170 million by 2020, based • India is expected to have 100,000 startups by 2025, which will createon rate of population growth, increased labour force participation, employment for 3.25 million people and US$ 500 billion in value.and higher education enrolment, among other factors. India’s foreignexchange reserves were US$ 404.92 billion in the week up to December • The total projected expenditure of Union Budget 2018-19 is Rs 23.422, 2017. lakh crore (US$ 371.81 billion), 9 per cent higher than previous year’s budget, as laid out in the Medium Term Expenditure Framework (MTEF).Recent Developments • India received the highest ever inflow of equity in the form of foreignWith the improvement in the economic scenario, there have been various direct investments (FDI) worth US$ 43.4 billion in 2016-17 and hasinvestments in various sectors of the economy. The M&A activity in India become one of the most open global economies by ushering inincreased 53.3 per cent to US$ 77.6 billion in 2017 while private equity liberalisation measures.(PE) deals reached US$ 24.4 billion. Some of the important recentdevelopments in Indian economy are as follows: • The World Bank has stated that private investments in India is expected to grow by 8.8 per cent in FY 2018-19 to overtake private consumption• Indian companies raised Rs 1.6 trillion (US$ 24.96 billion) through growth of 7.4 per cent, and thereby drive the growth in India’s grossprimary market in 2017. domestic product (GDP) in FY 2018-19.• Moody’s upgraded India’s sovereign rating after 14 years to Baa2 with • The Niti Aayog has predicted that rapid adoption of green mobilitya stable economic outlook. solutions like public transport, electric vehicles and car-pooling could likely help India save around Rs 3.9 trillion (US$ 60 billion) in 2030.• India received net investments of US$ 17.412 million from FIIs betweenApril-October 2017. • Indian impact investments may grow 25 per cent annually to US$ 40 billion from US$ 4 billion by 2025.• The top 100 companies in India are leading in the world in terms • The Union Cabinet, Government of India, has approved the Central SpSoptloigtlhigt hotnoInndIniadniaEnleEcletrcotnroicnsic2s021081-189-1|928

Indian Economy partnerships between gram panchayats, private termed the Complexity Opportunity Index (COI), companies and other social organisations, to which measures how easy it is to redeployGoods and Services Tax (CGST), Integrated push for rural development under its ‘Mission existing knowhow to enter new complexGST (IGST), Union Territory GST (UTGST), and Antyodaya’ and has already selected 50,000 products.Compensation Bill. panchayats across the country for the same. India’s existing capabilities have not only• Indian merchandise exports in dollar terms • The fiscal deficit of the Government of India, diversified its exports, but also allow for easyregistered a growth of 30.55 per cent year-on- which was 4.5 per cent of the gross domestic redeployment into related products thatyear in November 2017 at US$ 26.19 billion. product (GDP) in 2013-14, has steadily reduced depend on those capabilities, making further to 3.5 per cent in 2016-17 and is expected to diversification relatively easy. China is projectedGovernment Initiatives further decrease to 3.2 per cent of the GDP in to grow at 4.9 per cent annually to 2026, the US 2017-18. three per cent and France 3.5 per cent.In the Union Budget 2017-18, the FinanceMinister, Mr Arun Jaitley, verified that the major • The Government of India plans to implement The top ranking in COI means India has manypush of the budget proposals is on growth a new scheme, named ‘Sasti Bijli Har Ghar “unrealised opportunities” to diversify intostimulation, providing relief to the middle class, Yojana’ with an outlay of Rs 17,000 crore (US$ related, high-value sectors to continue to driveproviding affordable housing, curbing black 2.64 billion), to provide electricity to around 40 productivity growth and job creation. Up to now,money, digitalisation of the economy, enhancing million un-electrified households in the country. that potential remains unrealized, however, astransparency in political funding and simplifying India’s complexity has not changed over thethe tax administration in the country. • India’s revenue receipts are estimated to past decade. The rapid growth that is predicted touch Rs 28-30 trillion (US$ 436- 467 billion) by is effectively capitalizing on previous gains inIndia’s unemployment rate has declined to 2019, owing to Government of India’s measures complexity.4.8 per cent in February 2017 compared to to strengthen infrastructure and reforms like9.5 per cent in August 2016, as a result of the demonetisation and Goods and Services Tax It stressed that ensuring the long-run potentialGovernment’s increased focus towards rural (GST). of India’s economic growth will rely on realizingjobs and the Mahatma Gandhi National Rural diversification into related products. The otherEmployment Guarantee Act (MGNREGA) Road Ahead major challenge will be to ensure the inclusivescheme. nature of this productive transformation, as India’s gross domestic product (GDP) is the gains made in new chemical, vehicle andNumerous foreign companies are setting up expected to reach US$ 6 trillion by FY27 and electronics exports are highly concentrated intheir facilities in India on account of various achieve upper-middle income status on the specific localities of the subcontinent. “Whethergovernment initiatives like Make in India and back of digitisation, globalisation, favourable that knowhow can be disseminated into newDigital India. Mr. Narendra Modi, Prime Minister demographics, and reforms. areas of India will in part determine whetherof India, has launched the Make in India initiative rapid growth can be sustained in the long-term,”with an aim to boost the manufacturing sector India is also focusing on renewable sources to it said.of Indian economy, to increase the purchasing generate energy. It is planning to achieve 40power of an average Indian consumer, which per cent of its energy from non-fossil sources “Others like India, Turkey, and the Philippineswould further boost demand, and hence spur by 2030 which is currently 30 per cent and also have successfully added productive capabilitiesdevelopment, in addition to benefiting investors. have plans to increase its renewable energy to enter new sectors and will drive growth overThe Government has also come up with Digital capacity from 57 GW to 175 GW by 2022. the coming decade,” said Sebastian Bustos,India initiative, which focuses on three core a lead CID researcher in trade and economiccomponents: creation of digital infrastructure, India is expected to be the third largest complexity methods.delivering services digitally and to increase the consumer economy as its consumption maydigital literacy. triple to US$ 4 trillion by 2025, owing to shift in Economic Survey 2017-18 consumer behaviour and expenditure patternSome of the recent initiatives and developments and is estimated to surpass USA to become the The Economic Survey 2017-18, was tabled inundertaken by the government are listed below: second largest economy in terms of purchasing the Parliament on January 29, 2018, by Arun power parity (PPP) by the year 2040. Jaitley, Union Minister for Finance, Government• The Government of India has succeeded in of India. The Survey forecasts a growth rate ofproviding road connectivity to 85 per cent of the India tops list of fastest growing 7 to 7.5 per cent for FY19, as compared to the178,184 eligible rural habitations in the country. economies for coming decade expected growth rate of 6.75 per cent in FY18. Focus on private investments and exports, two• All villages have been electrified in India by India tops the list of the fastest growing truly sustainable engines of economic growth,May 2018. economies in the world for the coming decade will be crucial in improving the climate for rapid and is projected to grow at 7.9 per cent economic growth.• The Government of India has decided to annually, ahead of China and the US, accordinginvest Rs 2.11 trillion (US$ 32.9 billion) to to a Harvard University report. Key Highlights:recapitalise public sector banks over the nexttwo years and Rs 7 trillion (US$ 109.31billion) for The Centre for International Development (CID) Fiscal Deficit:construction of new roads and highways over at Harvard University said that countries thatthe next five years. have diversified their economies into more • Central Government is confident of achieving complex sectors, like India and Vietnam, are fiscal deficit of 3.2 per cent of GDP for 2017-18.• The mid-term review of India’s Foreign Trade those that will grow the fastest in the comingPolicy (FTP) 2015-20 has been released by decade. “India tops the list as the fastest • The fiscal deficit during April-NovemberMinistry of Commerce & Industry, Government growing country for the coming decade, at 7.9 2017 has reached 112 per cent of budgetedof India, under which annual incentives for per cent annually, in the economic complexity expenditure as compared to 85.8 per centlabour intensive MSME sectors have been growth projections. India has made inroads during the corresponding period last year.increased by 2 per cent. in diversifying its export base to include more complex sectors, such as chemicals, vehicles, • Revenue and fiscal deficits of states as a• The India-Japan Act East Forum, under which and certain electronics,” the report said. percentage of corresponding budget estimatesIndia and Japan will work on development is lower in the current year as compared to theprojects in the North-East Region of India will be It said that India’s productive capabilities far previous year.a milestone for bilateral relations between the exceed expectations for its current income level,two countries. which contributes to the projection of rapid GDP Growth: growth for the coming decade. The researchers• The Government of India will spend around also find India ranks the best on the criteria • GDP growth expected to be between 6.5 andRs 1 lakh crore (US$ 15.62 billion) during FY 6.75 per cent in 2017-18.18-20 to build roads in the country. • Real GDP growth expected at 6.5 per cent in• The Government of India plans to facilitate Spotlight on Indian Electronics 2018-19 | 30

Future Technology perfect. Who wants to know protocol called a zero-¬knowledge proof. they might develop Alzhei- Though researchers have worked on it forTRUE INTERNET PRIVACY mer’s? What if someone with decades, interest has exploded in the pastWOULD FINALLY BECOME a low risk score for cancer year, thanks in part to the growing obsessionPOSSIBLE puts off being screened, with cryptocurrencies, most of which aren’t and then develops cancer private.those exams might catch more real cancers anyway? Much of the credit for a practical zero-knowl-and set off fewer false alarms. Polygenic scores are also edge proof goes to Zcash, a digital currencyPharmaceutical companies can also use the controversial because they that launched in late 2016. Zcash’s develop-scores in clinical trials of preventive drugs can predict any trait, not ers used a method called a zk-SNARK (forfor such illnesses as Alzheimer’s or heart only diseases. For instance, “zero-knowledge succinct non-interactivedisease. By picking volunteers who are more they can now forecast about argument of knowledge”) to give users thelikely to get sick, they can more accurately 10 percent of a person’s power to transact anonymously.test how well the drugs work. performance on IQ tests. As That’s not normally possible in Bitcoin andThe trouble is, the predictions are far from the scores improve, it’s likely most other public blockchain systems, in that DNA IQ predictions will which transactions are visible to everyone. become routinely available. Though these transactions are theoretically But how will parents and educators use that anonymous, they can be combined with information? other data to track and even identify users. Vitalik Buterin, creator of Ethereum, the Perfect Online Privacy world’s second-most-popular blockchain network, has described zk-SNARKs as an True internet privacy could finally become “absolutely game-changing technology.” possible thanks to a new tool that can—for For banks, this could be a way to use instance—let you prove you’re over 18 blockchains in payment systems without without revealing your date of birth, or prove sacrificing their clients’ privacy. Last year, you have enough money in the bank for a JPMorgan Chase added zk-SNARKs to its financial transaction without revealing your own blockchain-based payment system. balance or other details. That limits the risk of a privacy breach or identity theft. The tool is an emerging cryptographic SpoStpliEgothLlitgEohnTt oiInmndIeinasdn|iaE5nl8eEc|lterAocnptrirocinsl,ic22s00121808-1189-1|931

Indian Economy growth of 3.9 per cent during April-November country witnessed growth of 50 per cent to 9.8 2017. million unique GST registrants, as of December2017-18 2017. • The performance of corporate sector• GVA growth at basic prices is expected to be highlighted that the growth in sales of more than • India’s internal trade in goods and services6.1 per cent in 2017-18 1700 non-government non-financial (NGNF) (excluding non-GST goods and services) at 60 listed manufacturing companies was 9.5 per per cent is even higher than that estimated inInflation and monetary policy: cent in Q2 2017-18 compared to 3.7 per cent in last year’s economic survey. Q2 2016-17.• Average retail inflation, measured by • The current GST tax base (excluding exports)Consumer Price Index (CPI), in 2017-18 (April – • As of September 2017, India had 115,530 is around 6.5 to 7 million, broadly similar to theDecember) seen at 3.3 per cent. km of national highways, 176,166 km of state estimates of Revenue Neutral Rate Committee highways and 53,26,166 km of other roads. and GST Council.• Average Wholesale Price Index (WPI) inflation, Under the new umbrella program ‘Bharatmalain 2017-18 (April – December) seen at 2.9 per Pariyojana’ the government is aiming holistic • Based on the average collections from GST,cent from 1.7 per cent in 2016-17. development of highways in the country. the implied weighted average collection rate (incidence) is 15.6 per cent. This is similar to the• The Reserve Bank of India (RBI) has cut the Services sector: estimate of 15-16 per cent made by the RNRrepo rate by 25 basis points to 6.0 per cent in committee.August 2017. • The services sector is projected to grow at 8.3 per cent in 2017-18, as against 7.7 per cent in • Non-agricultural workforce in the formal sectorExternal Sector: 2016-17. in India is considerably greater than previously held beliefs about the size of formal sector• The current account deficit has declined to • As per World Trade Organisation (WTO) data, non-farm payroll. Estimates, on the basis ofreach about 1.8 per cent of GDP in the first half India’s share in the exports of commercial enterprise-based definition of employment,of FY2018. services in the world increased to 3.4 per cent in imply that nearly 53 per cent of non-agricultural 2016 from 3.3 per cent in 2015. workforce is in the formal sector.• During April-December 2017, trade deficitincreased by 46.4 per cent over corresponding • In terms of growth in tourism sector, between Changing face of Science, Researchperiod of previous year. January-December 2017, Foreign Tourist and Technology in India Arrivals (FTAs) were 10.2 million with a growth• During April-December 2017, exports grew of 15.6 per cent and foreign exchange earnings • Public expenditure on R&D as a percentage12.1 per cent to US$ 223.5 billion, while imports (FEE) were at US$ 27.7 billion with a growth of of GDP has remained constant between 0.6-0.7increased by 21.8 per cent to US$ 338.4 billion. 20.8 per cent. per cent over the past two decades; however in value terms, the gross expenditure on R&D has• Private transfer receipts, most of which is Public Finance: increased at a CAGR of 13.03 per cent from Rscomposed of remittances from Indians working 24,117 crore (US$ 3.8 billion) in 2004-05 to Rsabroad, increased by 10 per cent to US$ 33.5 • The growth in non-debt receipts at 4.58 per 104,864 crore (US$ 16.5 billion) in 2016-17.billion in first half of 2017-18. cent during April-November 2017 as against the growth rate of 25.8 per cent in the previous year. • The number of students enrolled in PhDPerformance of key sectors: programs in India has increased over the years, • The realisation of the gross tax revenue with 126,451 PhD enrolments in 2015-16,Agriculture and food management: during April-November 2017 as ratio of the backed by concerted efforts by the Government budget estimates for 2017-18 was 56.9 per cent of India such as increase in the number and• The growth rate in Gross Value Added compared to 57.2 per cent in the corresponding quantum of fellowships like the Prime Minister(GVA) by the agriculture and allied sectors is period of the previous year. Research Fellowships at the IITs.estimated to be 4.9 per cent for 2016-17, as perprovisional estimates. Ease of Doing Business in India: • The number of annual publications in India grew 14 per cent between 2009-14, which• The production of Kharif food-grains during • Various reforms taken by the Government of increased India’s share in global publications2017-18 is estimated at 134.7 million tonnes India have led to increase in India’s ranking in from 3.1 per cent in 2009 to 4.4 per cent incompared to 138.5 million tonnes in 2016-17. the World Bank’s Ease of Doing Business Index 2014. from 130 in 2017 to 100 in 2018.• The area sown under rabi crops during 2017- • India was ranked 13 in 2017 by Nature Index,18 has reached 61.78 million hectares as of • India’s ranking in the taxation and insolvency which publishes tables based on counts ofJanuary 19, 2018. parameters improved by 53 and 33 spots, high-quality research outputs based on natural respectively, on the back of administrative sciences in the previous year.• Around 840,000 hectares of land was brought reforms undertaken by the Government ofunder micro-irrigation during 2016-17. India in the areas of taxation and passage of • As per WIPO, India’s Patent Filing Office is the Insolvency and Bankruptcy Code (IBC), 2016. 7th largest in the world with 45,658 registered• Coverage of non-loanee farmers under the patents as of 2015.Pradhan Mantri Fasal Bima Yojana (PMFBY) • To improve the ease of doing business inincreased 123.5 per cent in 2016-17 and the the country, the government has taken various • About 200,000 patents were pending forscheme is being implemented in 25 states/ initiatives to improve contract enforcement. examination as there were only 132 patentUTs in 2017. The scheme covers farmers from Over 1,000 redundant legislations have been examiners as of 2016-17; however thepre-sowing to post harvest against natural non- scrapped. government has hired 450 patent examinerspreventable risks. and created an expedited filing system for • The Commercial Courts, Commercial Division Indian residents in 2017, which will improve theIndustries, corporate and and Commercial Appellate Division of High existing patent system.infrastructure sector: Courts Act, 2015 have been passed while intra- government litigation has been reduced. • In order to encourage investigator-led• Growth rate in the Gross Value Added (GVA) research, the Science and Engineering researchby the industrial sector was 5.6 per cent in • The National Judicial Data Grid (NJDG) is Board (SERB) was established in 2008, which2016-17 and 5.8 per cent in the second quarter being expanded under which every high court has sanctioned nearly 3,500 new R&D projectsof 2017-18. in the country will be digitized very soon. The to individual scientists so far. same was recognized in the rankings by the• During April-November 2017, the Index of World Bank. • India can become a global leader outrightIndustrial Production (IIP) grew 3.2 per cent, in various areas with willingness to invest andwhile registering a growth rate of 8.4 per cent in GST data and the Indian Economy:November 2017, the highest in 25 months. • The number of indirect taxpayers in the• The eight core infrastructure supportiveindustries, viz. coal, crude oil, natural gas,refinery products, fertilizers, steel, cement andelectricity that have a total weight of nearly40 per cent in the IIP, registered a cumulative Spotlight on Indian Electronics 2018-19 | 32

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Indian Economyfocus on key areas. For this purpose, the government has chosen few missions for their strategic importance and potential for societal impact suchas National Mission on Dark Matter, National Mission on Genomics, National Mission on Energy Storage Systems, National Mission on Mathematics,National Mission on Cyber Physical Systems, and National Mission on Agriculture.India - Economic Forecasts - 2018-2020 OutlookThis page has economic forecasts for India including a long-term outlook for the next decades, plus medium-term expectations for the next fourquarters and short-term market predictions for the next release affecting the India economy.Population (million) 2012 2013 2014 2015 2016GDP per capita (USD) 1,243 1,259 1,276 1,292 1,309GDP (USD bn) 1,465 1,477 1,597 1,611 1,729Economic Growth (GDP, annual variation in %) 1,821 1,860 2,038 2,082 2,264Consumption (annual variation in %) 5.5 6.5 7.2 8 7.1Investment (annual variation in %) 5.3 7.4 6.8 6.1 8.7Industrial Production (annual variation in %) 4.8 1.8 4.1 6.6 2.4Public Debt (% of GDP) 1.1 -0.1 2.8 3.4 5Money (annual variation in %) 69.1 68.5 68.6 69.6 69.5Inflation Rate (CPI, annual variation in %, eop) 7.5 12.3 10.7 11.5 6.3Inflation Rate (CPI, annual variation in %) 10.5 8.2 5.3 4.8 3.9Inflation (PPI, annual variation in %) 10.2 10 5.9 4.9 4.5Policy Interest Rate (%) 7.4 6 2 -3.6 1.8Stock Market (annual variation in %) 7.5 8 7.5 6.75 6.25Exchange Rate (vs USD) 8.2 18.9 24.9 -9.4 16.9Exchange Rate (vs USD, aop) 54.28 60.02 62.29 66.25 64.86Current Account (% of GDP) 54.37 60.42 61.14 65.42 67.04Current Account Balance (USD bn) -4.8 -1.8 -1.4 -1.1 -0.7Trade Balance (USD billion) -87.4 -32.8 -27.6 -22.1 -15.2Exports (USD billion) -189.5 -136.6 -137.5 -117.8 -105.7Imports (USD billion) 300 314 311 262 275Exports (annual variation in %) 490 451 448 380 380Imports (annual variation in %) -1.9 4.6 -1.2 -15.7 4.9 0.1 -8 -0.6 -15.3 0.2Overview Actual Q1/18 Q2/18 Q3/18 Q4/18 2020 percentGDP Growth Rate 1.8 1.7 1.6 1.4 1.5 1.3 percentUnemployment Rate 3.46 4.8 4.8 4.8 4.8 4.6 percentInflation Rate 4.44 5.1 5.1 5.5 4.7 4.8 percentInterest Rate 6 6 6 6 5.75 4.75 USD MillionBalance of Trade -11979.21 -14500 -16200 -14300 -14900 -11100Government Debt to GDP 69.5 69.2 69.2 69.2 69.2 70 percentMARKETS Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Currency 65.18 64.09 64.69 65.3 65.91 68.42Stock Market 32968.68 points 34044 33292 32557 31837 26625Government Bond 10Y 7.40 percent 7.76 7.97 8.18 8.4 9.33 Spotlight on Indian Electronics 2018-19 | 34

Indian EconomyGDP Actual Q1/18 Q2/18 Q3/18 Q4/18 2020GDP Growth Rate 1.80 percent 1.7 1.6 1.4 1.5 1.3GDP Annual Growth Rate 7.20 percent 7 7.3 7.4 7.2 5.7GDP 2263.79 USD 2500 2500 2500 2500 3100 BillionGDP Constant Prices 32495.60 INR 34500 33180 34300 35600 40100 BillionGross National Product 12865461.00 INR 12865461 12865461 12865461 12865461 12865461 Tens Of MillionGross Fixed Capital Formation 10519.30 INR 10006 9876 9843 9832 11000 BillionGDP per capita 1861.50 USD 2500 2500 2500 2500 3500GDP per capita PPP 6092.60 USD 6500 6500 6500 6500 7000GDP From Agriculture 5722.27 INR 3138 4926 3689 4275 4130 BillionGDP From Construction 2379.51 INR 2153 2349 2179 2297 2530 BillionGDP From Manufacturing 5247.83 INR 5247 5248 5248 5248 4620 BillionGDP From Mining 880.10 INR Billion 912 911 911 952 925GDP From Public Administration 3994.68 INR 3816 3781 3775 3773 3773 BillionGDP From Utilities 641.71 INR Billion 648 645 646 630 713LABOUR Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Unemployment Rate 3.46 percent 4.8 4.8 4.8 4.8 4.6Employed Persons 29650.00 Thousand 30737 30737 30737 30737 32200Unemployed Persons 44.85 Million 41.7 41.7 41.7 41.7 40.33Labor Force Participation Rate 52.50 percent 53.54 53.54 53.54 53.54 55.32Population 1299.00 Million 1320 1320 1320 1320 1340Retirement Age Women 60 60 60 60 60 60Retirement Age Men 60 60 60 60 60 60Living Wage Family 17400.00 INR/Month 18500 18500 18500 18500 19800Living Wage Individual 11000.00 INR/Month 14000 14000 14000 14000 18000Wages 272.19 INR/Day 330 330 330 330 360Wages High Skilled 44000.00 INR/Month 65500 65500 65500 65500 46500Wages In Manufacturing 347.30 INR/Day 450 450 450 450 500Wages Low Skilled 10300.00 INR/Month 16000 16000 16000 16000 18000Youth Unemployment Rate 12.90 percent 15.2 15.2 15.2 15.2 13.5 Spotlight on Indian Electronics 2018-19 | 36

Indian EconomyPRICES Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Inflation Rate 4.44 percent 5.1 5.1 5.5 4.7 4.8Consumer Price Index CPI 136.40 Index Points 138 139 143 144 158GDP Deflator 128.80 Index Points 130 130 130 130 145Producer Prices 115.80 Index Points 116 116 118 119 131Producer Prices Change 2.48 percent 2.6 3 3.2 2.9 5.9Export Prices 372.00 Index Points 381 381 381 381 399Import Prices 518.00 Index Points 520 520 520 520 510Food Inflation 3.26 percent 3.5 4.3 4 4.2 4.7CPI Transportation 120.20 Index Points 125 128 130 133 151Inflation Rate Mom -0.40 percent 0.5 0.1 0.58 0.2 0.32MONEY Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Interest Rate 6.00 percent 666 5.75 4.75Cash Reserve Ratio 4.00 percent 444 44Interbank Rate 6.15 percent 6.32 6.4 6.3 6.3 5.5Money Supply M1 29203.50 INR Billion 28733 28315 28095 27861 27851Money Supply M2 31201.67 INR Billion 30871 32654 32293 30863 28517Money Supply M3 136775.74 INR Billion 135979 139593 141145 134702 126972Central Bank Balance Sheet 17014.09 INR Billions 17069 17348 17510 17597 17596Foreign Exchange Reserves 421330.00 USD Million 421128 416165 411604 408098 397173Loan Growth 11.50 percent 10.82 11.71 10.41 8.5 7Reverse Repo Rate 5.75 percent 5.75 5.75 5.75 5.5 5TRADE Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Balance of Trade -14500 -16200 -14300 -14900 -11100 -11979.21 USD 24700Exports Million 39200 24600 25000 24500 28900 25834.36 USD -7100Imports Million -1.3 40800 39300 39400 40000 37813.57 USDCurrent Account Million -15000 -7344 -4100 -2460 -13465.11 USDCurrent Account Million -1.3 -1.3 -1.3 -1.2to GDP -0.70 percentExternal Debt 514000 517000 519000 517000 513438.00 USD 509000Terms of Trade Million 73 73 73 78Capital Flows 71.80 Index Points 73 14.56 -0.5 5.38 5.03Foreign Direct -11.42 3336 2511 2794 2786Investment 33.39USD Million 1763Remittances 10939 10802 10636 10627 1921.00 USD 11185 Million 11623.76 USD Million Spotlight on Indian Electronics 2018-19 | 38

Indian EconomyTourist Arrivals 1053000 974700 766100 834100 904200 762000 552 549 546 525Gold Reserves 558.10 Tonnes 555 731 732 732 732Crude Oil Produc- 720.00 BBL/D/1K 728 7.63 7.63 7.63 7.72tion 56 56 56 56Terrorism Index 7.53 7.63 Q2/18 Q3/18 Q4/18 2020 55.9 56.5 57 59Weapons Sales 56.00 USD Million 56 51.5 51.8 52.1 51.2 52 51 52.1 51.9BUSINESS Actual Q1/18 2.9 3.9 4.1 6.5Business Confidence 59.70 Index Points 56.8 0.8 0.88 0.7 0.87Manufacturing PMI 52.1 52.8Services PMI 47.80 Index Points 51.9 3.4 2.27 4.1 5.6Industrial Production 7.50 percent 3.2Industrial Production 1.50 percent 1.73 332 348 344 344Mom 241700 247522 245408 244087Manufacturing Pro- 8.70 percent 3.5 238308 254220 245086 247519duction 9079 10309 11613 12592Changes in Inventories 228.82 INR Billion 381 9221603 9152764 9095799 8729667Car Production 255196.00 Units 248342Car Registrations 242411 263491 5.9 2.5 2.8 2.1Internet Speed 6492.06 KBps 8654 8450 8255 8581 8567IP Addresses 9378846 9274399 IP 22219 24720 23837 24351Mining Production 0.10 percent 3.9Steel Production 9028.00 Thousand 9103 4.61 4.61 4.61 5.51 Tonnes 44 44 44 51Cement Production 27151.00 Thou- 24335 51.4 50.73 53 51.6 sands of Tonnes 40 40 40 42Competitiveness Index 4.59 Points 4.61 81 81 74 72Competitiveness Rank 40 44 128 128 128 126Composite Pmi 49.7 53Corruption Index 40.00 Points 40 Q2/18 Q3/18 Q4/18 2020Corruption Rank 81 81Ease of Doing Business 100 128 137 130 133 133CONSUMER Actual Q1/18 18200 18500 19100 22000Consumer Confi- 97.00 Index Points 139 169623970 169623970 169623970 231000000dence 29077 29077 29077 30171Consumer Spend- 19190.11 INR 17950ing Billion 9.6 9.6 9.6 7.5Disposable Per- 169623970.00 INR 169623970 10.7 10.8 10.74 10.76sonal Income Million 1.07 1.07 1.06 0.92Personal Savings 26099.21 INR 29077 BillionBank Lending 9.45 percent 9.6RateHouseholds Debt 11.10 percent of 10.87To Gdp GDPGasoline Prices 1.10 USD/Liter 1.1 Spotlight on Indian Electronics 2018-19 | 40

Indian EconomyHOUSING Actual Q1/18 Q2/18 Q3/18 Q4/18 2020Housing Index 146 148 150 154 175 138.00 IndexConstruction Output Points 3.9 3.3 2.2 4.5 3 6.70 percentTAXES Actual Q1/18 Q2/18 Q3/18 Q4/18 2020 34.61 34.61 34.61 34.61 25Corporate Tax Rate 34.61 percent 35.54 35.54 35.54 35.54 35.54Personal Income Tax 35.54 percent 18 18 18 18 18Rate 18.00 percent 24 24 24 24 24Sales Tax Rate 12 12 12 12 12Social Security Rate 24.00 percent 12 12 12 12 12Social Security Rate For 12.00 percentCompanies 12.00 percentSocial Security Rate ForEmployeesThe International Monetary Fund (IMF) remains bullish on India’s growth Asia & India, Google. Poor bandwidth & technology could eclipse this thepotential and has retained its GDP forecast for the country at 6.7 per centin 2017 and 7.4 per cent in 2018.In its World Economic Outlook Update, it also estimated that the Indianeconomy would grow by 7.8 per cent in 2019, which make the countrythe world’s fastest-growing economy in 2018 and 2019, the top ranking itbriefly lost in 2017 to China.In contrast, China’s growth is expected to slow down from 6.8 per cent in2017 to 6.6 per cent in 2018 and further to 6.4 per cent in 2019.Global economyThe IMF is, however, more bullish about the global economy and hasscaled up its forecast for world output to 3.9 per cent each in 2018 and2019, which is 0.2 percentage points higher than its estimate in October.For 2017, it has raised its estimate for global growth by 0.1 percentagepoints to 3.7 per cent.“The revision reflects increased global growth momentum and theexpected impact of the recently-approved US tax policy changes,” it said.It has significantly raised the growth forecast for the US to 2.3 per cent in2017, 2.7 per cent in 2018 and 2.5 per cent next year.India’s way to $1 trillion digital economyDigital is fast engulfing our lives. Users are consuming more of it, usingan average of 4 GB of data a month on everything from entertainment toshopping. New users, all on smartphones, start using mobile internet withfree services like email and regional language content, and “within weeksleapfrog to ecommerce and digital payments. There will be 600 millionIndians with smartphones in five to seven years, each consuming contentand transacting digitally.That creates immense opportunities across the lives of those individuals growth. A snapshot of the digital economy that is expected to balloon.and impacts nearly all industries they interact with, including financial All-round Growthservices, retail, media, travel & hospitality and healthcare. “In the next fiveyears, India is really going to be a continuous story about user growth. • 500 millionn users will consume online videos by 2020And as India’s internet user base matures, there will be a significantimpact on every vertical”, says Rajan Anandan, vice-president-South East • Fourth largest category will be online news, reaching 280 million users by 2020 from 106 million users today • 50% of internet users will pay digitally by 2020 Challenges to Digital Economy Growth Spotlight on Indian Electronics 2018-19 | 42

Indian Economy Challenges to Digital Economy Growth • Slow roll-out of Wi-Fi hotspots • Most small & medium enterprises still not online & slow to adopt technology • Entry-level smartphones have limited capabilities to allow smooth internet access • Not enough skilled manpower in digital technologies • Lack of user education (Data sources: Ministry of Electronics & IT, IAMAI, Google-BCG report, FICCI-EY report) Spotlight on Indian Electronics 2018-19 | 44

ElectronicsManufacturingIndustry Electronics Manufacturing Industry is one of the largest & fastest growing industries in the world with a size of USD 1.75 Trillion and is expected to reach USD 2.4 trillion by 2020. The demand in the Indian Electronics Market alone is expected to reach USD 400 billion by 2020. With the present growth rate, India can manufacture goods required worth USD 100 billion only. To address the gap of supply & demand, Government of India has set a vision to transform India into a global hub for ESDM sector to cater both domestic and global demand.

Electronics in IndiaINDIAElectronics India: An OverviewE lectronics Manufacturing Industry is one of the largest & under M-SIPS scheme. Applications received before July, 2020 will fastest growing industries in the world with a size of USD 1.75 be considered. Trillion and is expected to reach USD 2.4 trillion by 2020. The Policy support: 100 per cent FDI allowed in the electronics hard- demand in the Indian Electronics Market alone is expected ware manufacturing sector under the automatic route; Initiatives to reach USD 400 billion by 2020. With the present growth rate, like Modified Special Incentive Package Scheme (M-SIPS) will India can manufacture goods required worth USD 100 billion only. provide a capex subsidy of 20 – 25 per cent; As per Make in India Initiative, Electronic Development Fund Policy has been approved to rationalise an inverted duty structure; Focus on local manufac- turing and design LED growth of the ESDM sector, the IESA provid- ed a budgetary support of USD110 million through schemes. Market Overview and Trends The Indian electronics sector is split into six product segments:Source: Department of Electronics & Information Technology; TRAINotes: DTH - Direct-to-Home (satellite television broadcasting); CAGR - CompoundAnnual Growth Rate, LED - Light Emitting DiodeSource: Department of Electronics & Information Technology; Indian Semiconductor Source: Department of Information Technology Annual Report; Corporate Catalyst India;Association; FICCI, TechSci Research TechSci ResearchNotes: CAGR – Compound Annual Growth Rate; E – Estimated, 20161 – Data has been Notes: SCADA – Supervisory Control and Data Acquisition; PLC – Programmable Logicprojected till December 2016 Controller Electronics production in India has been growing at a rapid pace: • Total production of electronics hardware goods in India is esti- mated to reach US$ 47.87 billion in FY17 and is expected to reach US$ 104 billion by 2020 • Production expanded at a CAGR of 12.60 per cent during FY07–17 • High production is majorly contributed by accelerating demand for advanced TVs, mobile phones, computers & defence related electronic equipments during FY07 to FY15To address the gap of supply & demand, Government of India has Source: Department of Information Technology Annual Reports; TechSci Researchset a vision to transform India into a global hub for ESDM sector to Notes: LED – Light Emitting Diodescater both domestic and global demand.Advantage IndiaMarket size – USD100 billion - Growing demand: Demand fromhouseholds is set to accelerate given rising disposable incomes,changing lifestyles and easier access to credit; Government andcorporate spending will also contribute to growth in demand.2020E Market size – USD400 billion - Attractive opportunities:The electronics market is expected to expand at a CAGR of 41.4 percentduring 2016–20; Intended reduction in government’s import bill islikely to boost domestic electronics manufacturers.Higher Investments: Sector has attracted strong investments inthe form of M&As and other FDI inflows; Companies are set toaugment investments in production, distribution and R&D in thenext few years; Government has received investment proposalsfor USD17.5 million for which they intend to provide incentives Spotlight on Indian Electronics 2018-19 | 46

Electronics in India• During FY16, production of industrial cent over FY07–15. • Electronic exports from India reachedelectronics, mobile phones & LED was USD5.7 billion in FY16, over FY07–16,recorded at USD6.89 billion, USD8.25 Source: Department of Information Technology exports from the sector (CAGR: 8.22 perbillion & USD0.55 billion, in value terms, (2014–15 Annual Report); TechSci Research cent).respectively. Notes: C&B – Communication and Broadcasting. • Consumer Electronics have shown a posi-• In March 2017, Xiaomi announced its tive growth over the years with the growth2nd manufacturing plant along with • Consumer electronics have grown over in the production of LCD/LED TVs rising toTaiwan based company Foxconn, in Andhra the years which has been accompanied almost 40 per cent in 2013 – 14 as com-Pradesh. This will help create employment by increase in LCD/LED TV imports andin 100 nearby villages for at least 5,000 accordingly this segment has registered Source: Department of Electronics & Information Tech-people. about 16 per cent growth in 2014 – 15. nology Annual Report;Consumer electronics have the highest • Growth in the hardware segment is Electronics and Computer Software Export Promotionshare in production: expected to far outpace the overall growth Council;• According to government estimates, Con- of electronics goods production in the TechSci Researchsumer Electronics has the highest share country (CAGR of 10.1 per cent over the Notes: C&B – Communication and Broadcasting(29.7 per cent) in the total production of same period).electronic goods in India. The growth in • The total computer hardware to reach pared to a mere 11 per cent in 2012 – 13.consumer electronics over the years has USD31.6 billion in FY15 from USD29.9 • Technological improvements andbeen accompanied by an increase in im- billion in FY14. competitively cost effectiveness are mainports in respect of certain items like LCD/ drivers for demand of Indian electronicsLED TVs Source: Department of Information Technology Annual products abroad.• The Electronic Components had wit- Report, TechSci Research • Government of India is coming up withnessed a growth of about 23.74 per Notes: C&B – Communication and Broadcasting, an export-oriented policy for electroniccent from the previous year which was F – Forecast products. The idea behind this policy issupported by the rapid growth in domestic to promote greater exports of electron-manufacturing of electronic components. Comparison of Consumer Electronics with ics & drive larger investments by settingIndustrial electronics contributed 20.9 other equipment: up port-based electronic manufacturingper cent of the total output of electronics • Production value of all other segments in clusters.goods industry in FY15. Industrial elec- the electronics sector (other than Consum- • As of April 2017, LG Electronics, a Southtronics is expected to grow at a consider- er Electronics) grew at a rate of 10.9 per Korea-based company, plans to make Indiaable pace with the new plans and schemes cent over FY07-15. as its export hub, considering the good tiesby government • With growth in Consumer Electronics between both the countries. The company• Communication and broadcasting far outpacing those in other segments till has 2 manufacturing units in India already,equipment constitutes 10 per cent of total FY15, the former’s share in total electronics through which it exports to Middle Easternproduction of electronic goods in India in production has doubled over FY07–12 to & African countries. 8.4 per cent. Notable trends in the electronics sector:Source: Department of Information Technology • The share of consumer electronics in Consumer electronics: Increased presence(2014–15 Annual Report); TechSci Research the overall electronics industry in India is of organised retail and affordability due toNotes: C&B – Communication and Broadcasting. likely to reach 28 per cent by FY20 with technological advancement. Under Union the value of consumer electronics reaching Budget FY17, government exempted partsFY15. Not surprisingly, computers are a key USD29 billion by FY20. and components, subparts for manufactur-component of total electronics output in Electronics exports from India have out- ing of routers, broadband modems, set-topIndia (9.9 per cent in FY15); the segment’s paced total production in the sector: boxes for internet and TV, CCTV camera/IPshare is likely to go up over this decade, camera, lithium-ion battery except mobilegiven greater policy focus on encouraging handsets from the purview of BCD, CVD,computer hardware manufacturing. SAD duties.• As of FY16, production of industrial elec- Industrial electronics: Application of state-tronics, mobile phones and LEDs, in value of-the-art systems such as Decision Anal-terms, stood at around USD6887.11 million, ysis, 3–D coordinate systems, smart imageUSD8249.31 million and USD548.43 mil- processing, Nanotechnology, Nanoscalelion, respectively. assemblies, DCS, etc., across various sec-Comparison of C & B equipment with other tions of the industry. Artificial Intelligenceequipment: has been made available which would help• Production (by value) of C&B equipment the sector to improve its quality controlin India has expanded at a CAGR of 5.1 per thereby making it more efficient. Computers: One of the fastest-growing IT Spotlight on Indian Electronics 2018-19 | 48

Electronics in Indiasystems and hardware market in Asia Pacific. Expansion of server sumer electronics, are shifting towards popular ad campaigns tomarket into smaller cities and small and medium businesses. boost their sales, like embracing aggressive social strategies (e.g.Electronic components: Semiconductors lead segmental growth. by going online) to target young audience & build brand loyaltyHigh growth in key determinants for electronic components, among them.namely consumer electronics, telecom, defence and IT verticals. JVs & partnerships: Most companies are forming strategic alli-Strategic electronics: The production in strategic electronic seg- ances and JVs for mutual benefits. LG and Sun Microsystems arement in India increased from USD2.68 billion in FY15 to USD3.08billion in FY16. Nuclear power to play a large role in India’s energy Source: TechSci Researchsecurity needs. Companies such as Bharat Electronics Ltd, Hindu- Notes: EHTP – Electronic Hardware Technology Park; SEZ – Special Economic Zone;stan Aeronautics Ltd, Electronics Corporation of India Ltd, Bharat FDI – Foreign Direct Investment; R&D – Research and DevelopmentDynamics Ltd dominated this segment.C&B equipment’s: Growing broadband subscriber base. As on 9th jointly developing Java platforms to enable LG phones and TVs. LGJanuary, 2017, the total number of telephone subscribers in the and Siemens have collaborated to develop standard solutions forcountry was 1,102.94 million, covering wireless subscriber base air conditioners.of 1,078.42 million & wireline subscriber base of 24.52 million, Outsourcing of Technology: Manufacturing technologies are ex-respectively. changed with other countries for better knowledge of innovations.E – Waste Management: Increasing Adoption of Electronic Waste Being competitive on global platform is key to sustainability andManagement Scheme supported by the regulatory framework has growth for the sector.improved the electronics sector to a large extent. Strong demand and policy support are driving investments:Major Contributors to Employment: Major segments such as Key growth drivers are rising incomes, credit availability andConsumer Electronics, Telecom Equipment and IT Hardware can government spending:be major contributors to employment. • Increase in discretionary income and credit availability hasIncreasing Consumption and potential for production: Increasing boosted demand for consumer durables.PFCE on Recreational and Educational services and Home appli- • The government is one of the biggest consumers of the sectorances are expected to contribute to the rise in consumption and and leads the corporate spend on electronics; this is not surpris-production of Electronics and IT Hardware. Growth of 17 per cent ing given that electronics facilitates egovernance, developmentalis expected with major contributors being Consumer Electronics, schemes and initiatives launched by the government.Telecom and computers. • Strong demand and favourable investment climate in the sectorAnalysis Source: IMF, World Bank, TechSci Research Note: F – IMF ForecastCompetitive Rivalry: Competitive rivalry is quite high in thissector, as players use innovation and product differentiation to are attracting investments in R&D as well as manufacturing.beat peers. Each player adopts different strategies to capture • Increasing demand for defence equipment has boosted the pro-market share; for example, one player innovates while another duction of electronics goods up to a considerable level.diversifies, thus intensifying the rivalry in the sector. • Electronic Manufacturing Services and R&D based exports alsoThreat of New Entrants: Threat is low due to capital intensive drives the market. The increased value – addition would furthernature of the industry. Evolving technology, brand loyalty block increase the demand for sales, production, after – sales supportentry.Substitute Products: Threat is low because there is no substitutefor electronics, Threat is present within the industry due to prod-uct innovation by peers.Bargaining Power of Suppliers: Low bargaining power of sup-pliers, as product differentiation is less, Low switching costs forcustomers.Bargaining Power of Customers: High as buyers possess consider-able product information these days, which helps in comparison,Availability of similar options.Strategies adoptedInnovation: BPL Medical Technologies has manufactured a healthand fitness monitoring device named as LifePhone+ used to recordblood sugar levels. In May 2017, a group of Indian & Americanscientists have used recycled jute to fabricate high performance,flexible supercapacitors, which have a number of applicationsin consumer electronics. LG Electronics India is looking to sellaround 10,000 units of super premium range of televisions inFY18. The brand is all set to launch 9 variants in OLED 4K TV rangewith plans to launch 52 new models of televisions in 2017 to grabmore market share.Diversification: Most companies are now diversifying into otherprofitable segments; for example: Samsung is focussing heavilyon mobile phone manufacturing, while earlier it focussed more onconsumer electronics. For instance, Videocon is also foraying intoother segments such as TV Network and mobile phone manufac-turing.Marketing strategy: Most electronics companies, especially con- Spotlight on Indian Electronics 2018-19 | 50

and services. This would trigger the demand for skilled human Electronics in Indiaresources in the country• Rapid urbanisation have unravelled new markets for consumer Source: Department of Industrial Policy and Promotion (DIPP); TechSci Researchgoods; easy financing options have made consumer goods afford- Notes: FDI – Foreign Direct Investment; FY – India Financial Year (April – March)able. 1 – Includes computer software & hardware sector inflowsPolicy support aiding growth in the sector: mobile phones due to a drop in tax to 12 per cent from theEncouragement to FDI, SEZs: • 100 per cent FDI is allowed under current 13.5 per cent.the automatic route in the Electronics Systems Design and Man- Intellectual Property: Rightsufacturing sector and is subject to all applicable regulations and Intellectual Property Rightslaws. In case of electronics items for defence, FDI up to 49 per (IPR) are a key determinant ofcent is allowed under the government approval route, whereas progress in R&D and innova-anything above 49 per cent is allowed through the approval of the tion in the electronics sector;cabinet committee on security. GOI has amended relevantCustoms duty relaxation: No customs duty on 217 tariff lines cov- IPR-related acts (like theered under the Information Technology Agreement (ITA- 1) of the Copyright Act, Trademark Act,WTO. Peak rate for basic customs duty is 10 per cent. New Designs Act) from timeReduced central excise: Mean rate of excise duty (CENVAT) is to time to help spruce up12.5 per cent; Microprocessors, hard disc drives, CD ROM drives, innovation and new technol-DVD drives/DVD writers, flash memory sticks and combo-drives ogies in the sector.are exempt from excise duty payment and SAD. Components and MSIPS: The scheme was noti-accessories of mobile handsets are exempt from excise duty and fied on July 27, 2015 to attractSAD. investments in electronicsElectronic Development Fund Policy: Under Union Budget 2017, manufacturing.government has increased the allocation of the Modified Special Incentives would be pro-Initiative Package & the Electronics Development Fund to US$ vided under MSIPS on the110.81 million to create an ecosystem to make India a global man- investment proposals beingufacturing hub. received. Till SeptemberInverted Duty: Inverted Duty has been rationalised for various 2015, investments of USD17.5electronics products including tablets, mobile phones, LED lights, billion has been received; InLCD/LED TVs, telecom equipment etc. December 2016, the IT andEPCG, EHTP schemes: EHTP provides benefits, such as duty Electronics Ministry is plan-waivers and tax incentives, to companies which replace certainimports with local manufacturing; Cabinet approved the ModifiedSpecial Incentive Package Scheme (M-SIPS) to boost electron-ics manufacturing in India, under which the firms achieving aturnover of US$1.48 billion within a timeframe of 5 years from theapproval date would be incentivised.Goods & Services Tax: GST rollout on July 1, 2017 is expected tohave a positive impact on small electronic devices market likeSpotlight on Indian Electronics 2018-19 | 51

Electronics in Indianing to take forward a reworked flagship electronic system design and manufactur- (EHTP) Scheme, Software Technology Parkincentive scheme MSIPS (Modified Special ing sector from USD5.5 billion to USD80 (STP) Scheme & EOU/EHTP/STP Schemes;Incentive Package Scheme) for electronics billion by 2020. IESA (India Electronics & Semiconductormanufacturing, to be presented to the Improving supply chain: To build a strong Association) announced the launch of newCabinet, with an objective to fast-forward supply chain of raw materials, parts and chapters to strengthen & improve the sup-investments. electronic components for raising the in- ply chain. Chennai, also known as Electron-Electronic Manufacturing Cluster (EMC): digenous availability of these inputs from ic Manufacturing Services (EMS), is one ofSchemeAs of July 2015, investments of the current 20–25 per cent to over 60 per the fastest growing manufacturing cities,USD13.96 million for 2 EMCs have been cent by 2020. with easy accessibility to seaports.approved. Total number of EMCs approved Building competencies: To develop core Targeted reduction in import bill: Do-in the last 1 year have become 21; 16 for competencies in strategic and core infra- mestic electronic production accounts forGreenfield EMCs, 3 for Brownfield EMCs in structure sectors like telecommunications, around 45.0 per cent of the total market7 states; As of December 2015, investments automotive, avionics, industrial, medi- demand. Therefore, in order to reduce theof USD18.67 billion has been allocated in cal, solar, information broadcasting and import bill, the government plans to boostthe electronics manufacturing sector. railways. the domestic manufacturing capabilities &National electronics policy 2012 – key Electronic Manufacturing: Clusters (EMCs) is considering a proposal to give prefer-objectives: Provide incentives for setting up of 200 ence to Indian electronic products in itsFavourable business: Conditions As of April Electronic Manufacturing Clusters (EMCs) purchases.2017, Haryana government plans to intro- - setting up of greenfield EMCs and up Increasing penetration in the consumerduce a new policy on electronics, commu- gradation of brownfield EMCs. durables segment: Consumer durablesnication & information sector. With an aim The electronics sector in India has attract- market in India is characterised by lowto create an investor friendly environment ed strong FDI inflows: penetration in various product segments,in the state, the government plans to pro- Cumulative FDI inflows into the electron- viz. 1 per cent in microwaves, 3 per cent invide incentives for IT & ITEs/BPO/ electron- ics sector, including computer hardware ACs, 16 per cent in washing machines, 18ics manufacturing and develop the reliable & software, increased at a CAGR of 14 per cent in refrigerators, etc. Higher dis-infrastructure. per cent, with the value increasing from posable incomes are leading to realisationFocus on new technologies: To build on USD9.8 billion in FY10 to USD24.66 billion of penetration potential in various productthe emerging chip design & embedded in FY17 Demand growth, supply advantag- segments, especially in rural areas.software industry for achieving global es & policy support have been instrumen- Policy & investment support: As per theleadership in Very Large Scale Integration tal in attracting FDI. targeted reduction in import bill, the(VLSI), chip design and other frontier tech- Multiple factors favour investment in government has proposed an investmentnical areas and to achieve a turnover of electronics: of USD555.0 million for semiconductorUSD55 billion by 2020, also focus on han- Growing customer base: Market for elec- manufacturing plants & USD222.0 million.dling e-waste in an environment friendly tronics is expected to expand at a CAGR of In Union Budget 2016–17, inputs, parts,policies; The Ministry of Electronics and IT 66.1per cent during 2015–20. The demand components & subparts for manufacturinghas revised policy to make India a global for electronics hardware in India is project- of charger/adapter, battery & wired hand-semiconductor hub to attract private sector ed to increase to USD139 billion by 2018. sets / speakers of mobile phones are fullycompanies, the Government will play an Incentives & concessions under schemes: exempted from Basic Customs Duty (BCD),active role in it. Export Oriented Unit (EOU) Scheme, Counter Veiling Duty (CVD) & Special Addi-Promote exports: To increase export in the Electronics Hardware Technology Park tional Duty (SAD). Spotlight on Indian Electronics 2018-19 | 52

Electronics System Design and Manufacturing (ESDM) the SP IGHTON INDIAN 2O18-19

Make in India: ElectronicsManufacturingThe demand of is estimated to grow exponentially to USD 400 Billion by 2023-24. The Government attaches high priority to electronics & IT hardware manufacturing. It has the potential to generate domestic wealth and employment, apart from enabling cyber-secure ecosystem. The electronic manufacturing sector requires continuous push with the overall objective of promoting “Make in India”, not only to meet the domestic demand but also to promote India as a hub for electronics manufacturing. Several policy initiatives under the “Digital India” and “Make in India” programmes are designed to facilitate investment, foster innovation, protect intellectual property, and build best in- class manufacturing infrastructure towards creating conducive environment for attracting investment in the electronics hardware manufacturing sector. The intent of the Government is to ensure a level playing field for domestic manufactures to enable them to compete with imports in the sector by rationalization of tariff structure, simplification of proce- dures, providing incentives and upgrading infrastructure. As a result of various measures taken over the last few years, production of electronics hardware has shown significant increase. The demand of electronics hardware is increasingly being met by domestic production. The following initiatives have been taken in this regard –Modified Special Incentive Package (M-SIPS): investments (investment above 1 billion USD). The status of M-SIPS applications as on 28thIn order to promote large scale manufacturing in the country, February 2018: So far, total 322 applications, witha Modified Special Incentive Package Scheme (M-SIPS) investment amounting to `1,33,861 crore have been receivedwas announced by the Government in July 2012 to offset under M-SIPS. Of which, 148 applications with investmentdisability and attract investments in Electronics System Design of approximately `27,460 crore have been approved. 19and Manufacturing (ESDM) Industries. The scheme mainly applications with investments of approximately `12,253 croreprovides subsidy for investments in capital expenditure- 20% have been recommended by the Appraisal Committee forfor investments in Special Economic Zones (SEZs) and 25% approval, 80 applications with investments of approximatelyin non-SEZS. The incentives are provided on reimbursement `42,193 crore have been closed due to incomplete applicationsbasis. The policy provides for an inter-ministerial Appraisal or not meeting the eligibility criteria under the scheme and 73Committee to evaluate investment applications. Based on applications involving investments of `14,378 crore are underthe recommendation of Appraisal Committee, approval of appraisal.Competent Authority is obtained. The Union Cabinet in itsmeeting held on 21st July 2015 has approved the extension of Modified Special Incentive Package Scheme Applications StatusM-SIPS and also approved amendment of M-SIPS in order tosimplify the procedure and enhancement of scope and thenotification of amendment in M-SIPS (simplifying procedure,enhancement of scope and extension for 5 years) was issuedon 3rd August, 2015. Further, the Union Cabinet in its meetingheld on 18th January, 2017, approved certain amendments inthe M-SIPS policy which were notified on 30th January, 2017. Asper the aforesaid amendments, applications under the Schemewill be received till 31st December 2018 or till such time thatthe incentive commitment reaches `10,000 crore, whichever isearlier. Incentives under the scheme will now be available forinvestments made within 5 years from the date of approval.These amendments are expected to expedite investments inelectronic manufacturing. As per the directions of the Cabinet,a separate committee headed by Cabinet Secretary has beenset up for mega projects, envisaging more than ` 6850 croreSpotlight on Indian Electronics 2018-19 | 54

Make in IndiaElectronic Manufacturing Clusters (EMC) 17 Uttar Pradesh Plot No. 6/A, sector-24, Yamuna ExpresswayTo create and strengthen the infrastructure ecosystem for electronics 18 Plot No.1, Block C, Ecotech-VI Industrial Area, Greater Noida.manufacturing, the Government notified Electronics ManufacturingCluster (EMC) Scheme in October 2012 to support creation of world-class 19 West Bengal Sector-IV & V, Falta Industrial Centre, P.S. Ramnagar,infrastructure for attracting investments in Electronics System Design and South 24Parganas DistrictManufacturing Sector. The Scheme was open for receiving applicationsfor a period of five years from the date of notification. Assistance for the 20 Naihati town, North 24 Parganas Districtprojects in Greenfield Electronics Manufacturing Clusters is restrictedto 50% of the project cost subject to a ceiling of `50 crore for every 100 List of Final Approved Common Facility Centre (CFC)acres of land. For larger areas, pro-rata ceiling applies. At the lower end, S.No. State Location/Citythe extent of support is decided by the Steering Committee for Clusters(SCC) subject to the ceiling of `50 crore. For Brownfield EMC, 75% of the 1 Karnataka Plot No.360, KIADB Industrial Area, Hebbal, Hottagalli,cost of infrastructure, subject to a ceiling of `50 crore is provided as grant. MysoreMeitY received 50 applications under EMC scheme (46 2 Maharashtra Plot No.-P 30, Shendra Five Star Industrial Area,application for setting up of Greenfield EMCs and 4 applications for Aurangabad Districtsetting up of Common Facility Centre (CFC) in Brownfield Clusters). Till28th February, 2018, MeitY has accorded final approval to Twenty (20) 3 Plot No. J/P-8, J 462 and J 462/P, Pimpri Industrial Area, PuneGreenfield EMCs and Three (3) Common Facility Centres (CFCs) and In-Principle approval to Three (3) Greenfield EMCs. The details are as under: Till date, the Government Grant-in-aid amounting to ` 251.85 crore has been released to 12 EMC projects to kick-start the infrastructure activities.List of Final Approved Greenfield EMC S.No. StateLocation/City Electronic Development Fund (EDF):1 Andhra Pradesh Village-Cherivi, Satyavedu Mandal, Chittor District Electronics Design & Manufacturing is a sector, which is characterized by high velocity of technological2 Vikruthamala Village, Yerpedu Mandal, Chittor District change. Intellectual Property is the most critical determinant of success,3 Renigunta and Yerpedu Mandal, Chittoor District, Near Airport, Tirupati not only for the companies of4 Assam Bongora (Village), Chayani (Mouza), Palasbari (Revenue Circle), this sector but also to the countries and economies as a whole. Setting upKamrup (R) (District) of EDF was one of the important strategies which would enable creating an electronics industry ecosystem in the country. Creating a vibrant5 Chhattisgarh Village-Tuta, Sector-22, Naya Raipur, Tehsil-Abhanpur, ecosystem of innovation, Research and Development (R&D) with activeRaipur District industry involvement is essential for a thriving electronics industry. It is with this objective that an Electronics Development Fund (EDF) is set up6 Gujarat Village-Tunda, Taluka- Mundra, District-Kutch as a “Fund of Funds” to participate in professionally managed “Daughter Funds”, which in turn will provide risk capital to companies developing7 Goa Village-Tuem , Taluka- Pernem Goa new technologies8 Jharkhand Adityapur, Saraikela-Kharsawan District in the area of Electronics, Nano-electronics and Information Technology (IT). This fund is expected to9 Kerala Kakkanad Village, Kanayannur Taluk, Ernakulam District foster R&D and innovation in these technology sectors EDF enables10 Madhya Pradesh Badwai-Bhopal creation of an ecosystem for providing risk capital to both industry and academia to undertake Research and Development in these technology11 Purva-Jabalpur areas. It will, in the process, enrich the intellectual property in the country and encourage more entrepreneurs towards product and technology12 Odisha Infovalley, Bhubaneswar Industrial Area, Khurda District development. M/s. Canbank Venture Capital Funds Ltd. (CVCFL), a 100% subsidiary of Canara Bank, is the Investment Manager and MeitY is the13 Rajasthan IA, Salarpur, Khushkera, Bhiwadi anchor investor of EDF. EDF was launched on 15th February, 2016 by Hon’ble Minister for Electronics & IT. Twenty two Daughter Funds have14 Karoli Industrial Area, Bhiwadi, Alwar District been selected for investment through EDF. The cumulative commitment15 Telangana E-city, Fab City, Hyderabad16 Maheshwaram, Ranga Reddy DistrictSpotlight on Indian Electronics 2018-19 | 55

Make in Indiaof EDF to these 22 Daughter Funds is `1227 crore and the total targeted (3) @- Includes Home Appliances, viz., Refrigerator, Washing Machine, Aircorpus of these 22 Daughter Funds is around `10,900 crore. Till date EDF Conditioner & Microwave Oven - from 2012-13 onwards.has drawn `56.99 crore from its contributors, which includes `51.24 crorefrom MeitY and has invested `16.38 crore to two Daughter Funds. As on (4) * - Estimates are as provided by respective Industry Associations.date EDF has invested in Two Daughter Funds, which in turn have madeinvestments in 14 Ventures. The total production of the aforesaid verticals of electronics sector in India is estimated to be aboutCompulsory Safety Standards for Electronics: `3,87,525 crore in 2017-18, compared to `3,17,331 crore in 2016-17,Keeping in view the safety of Indian consumers and to curb the inflow exhibiting a growth of about 22%. As a result of various initiatives taken byof substandard electronic products, the “Electronics and Information the Government and efforts of Industry, production of electronics in IndiaTechnology Goods (Requirements for Compulsory Registration) Order, has shown significant growth during the last three years.2012”. The Order necessitates creation of institutional mechanism fordeveloping and mandating standards and certification for electronic Consumer Electronicsproducts to strengthen Conformity Assessment infrastructure nationwide.As per the Scheme, the manufactures seeking registration of goods with The Flat panel TV market has shown a substantial growth in the last 5the Bureau of Indian Standards (BIS), have to get their products tested at years as a result of digitalizationBIS recognised labs. Testing is also to be performed on selected samplesduring the surveillance, subsequent to registration. The surveillance is to of broadcast sector and increased affordability due to reduction in price.be conducted by MeitY. This Order initially covered 15 notified electronic As a result of conducive Government policies, the production of LCD/products categories and 15 additional electronic items were notified under LED TVs got a boost and has increased to 16.0 million numbers valuedthe ambit of CRO on 13th November 2014. at about `26,400 crore in 2017-18, from 14.5 million Nos. valued at about `23,925 crore in 2016-17, exhibiting a growth rate of about 10%. TheMeitY has notified the following product categories under the Compulsory production for Home Theaters is estimated toRegistration Order-Phase-III vide Gazette notification dated 23rd August,2017. The items include recessed LED Luminaries, LED Luminaires witness a growth of about 0.76 million nos., valued at about `924 crore infor Road and Street lighting, LED Flood Lights, LED Hand lamps, LED 2017-18, compared to 0.7 million nos., valued at `840 crore in 2016-17.Lighting Chains, LED Luminaires for Emergency Lighting, UPS/Inverters With the advancement of technology, the conventionalof rating < 10kVA,Plasma/ LCD/LED Television of screen size up-to32”,Visual Display Units, Video Monitors of screen size up-to 32”,CCTV TV (with Picture Tube / CRT), in contrast to the LCD / LED segment, hasCameras/CCTV Recorders, Adapters for household and similar electrical continued to register negative growth of production. As per CEAMA,appliances, USB driven Barcode readers, barcode scanners, Iris production of CRT TVs is estimated to be one million during 2017-18scanners, Optical fingerprint scanners and Smart watches. The Order valued at `400 crore. Similarly, production of DVD players has continuedcame into effect from 23rd May 2018. to decline due to rapid growth of DTH sector, digitalization of TV network and use of set Top Boxes (STB). Public Address System segment ofScheme for setting up / up-gradation of Electronic consumer electronics is estimated to continue to grow steadily by aboutproducts testing / Quality Control Laboratories 10% in 2017-18, with an estimated production value of about `1,210 crore, as against `1,100 crore in 2016-17.To strengthen the conformity assessment infrastructure, DeitY notified“Scheme for setting up / up-gradation of Electronic product testing / Consumer Durables / Home AppliancesQuality Control Laboratories” on 25th August 2013.The objective of thescheme is to encourage setting up testing facilities by Central / State / This sub-sector comprising of Air Conditioners, Washing Machines,Academic Institutions which will be used for evaluating goods under the Refrigerators and Microwave Ovens has shown a growth rate of about“Electronics and Information Technology Goods. 17.2% with a value of `44,590 crore in 2017-18, as against `38,035 crore in 2016-17. As per CEAMA, the overall production of this segment ofGrowth of Electronics Sector: electronics industry, including Consumer Durables / Home Appliances was `64,742 crore in 2016-17 and is estimated to grow by 13.6% to aboutThe total global electronics hardware industry is about US $ 2 Trillion, out `73,524 crore in 2017-18.of which, India’s Production was about US$ 47 billion during the year2016-17. The domestic consumption in India was about $ 86.4 billion Industrial Electronicsduring the year 2016-17, while exports were about US$ 6 billion. Thecurrent value addition in the sector ranges from 5-30% in India, depending Fresh investments in engineering, electrical, automotive and electronicsupon the constituent of value chain. For example, it is around 25-30% in segments are driving the growth of Industrial Electronics sector. The keycomponents, whereas, it is approx. 5-15% at SKD assembly level. The application segments of the Industrial Electronics industry are processElectronics sector has several verticals in terms of its main constituents. control equipment, test & measuring equipment, power electronicsAt present, the availability of Production data of this sector is limited to the equipment, automation and analytical instruments. These technologiesinformation provided by various Industry Associations. Based on the are gaining ground as modernization, automation and robotics are the future growth areas. Information Technology and software are playing asame, the production profile of the Electronics Sector is as follows:- major role in value added Industrial electronics.Production of Electronics Sector (Rupees in crore) SNo Item / vertical The Industrial electronics segment viz., power electronics, process control2013-14 2014-15 2015-16 2016-17 2017-18 and automation equipment1 Consumer Electronics@ 47,599 55,806 55,765 64,742 73,524 with built-in software and analytical instruments account for nearly 81% of the total industrial electronics production. Most of the domestic demand2 Industrial Electronics 33,600 39,374 45,083 62,214 69,057 is catered to by domestic manufacturing. The power electronics space is dominated by unorganized regional players, which is expected to grow at3 Computer Hardware 17,484 18,691 19,885 20,382 21,401 higher rate due to huge demand and low penetration. Inverters and UPS are becoming household items driving the growth of this segment. Some4 Mobile phones 26,650 18,900 54,000 90,000 1,32,000 of the larger players include BHEL, Bluestar, ABB, GE, Keltron, Allen- Bradely, Amara Raja, Sukam, APC, Numeric, Honeywell, etc. Some of5 Strategic Electronics 13,800 15,700 18,055 20,760 23,562 these players have set up global tie-ups over the last few years and have brought in newer technologies into the Indian markets. Solar Photovoltaic6 Electronic Components 32,102 39,723 45,383 52,099 58,351 and allied equipment is another segment, which is likely to grow at a sustained high growth rate. As per estimates provided by ELCINA, the7 Light Emitting Diodes (LED) Products total production of Industrial Electronics during 2017-18 is estimated to be about `69,057 crore, as against `62,214 crore during 2016-17, exhibiting1,941 2,172 5,092 7,134 9,630 Computed Total 1,80,454 1,90,366 a growth of about 11%.2,43,263 3,17,331 3,87,525Notes:- (1) Data above is as provided by respective Industry Associations.(2) Source: 1 - CEAMA; 2, 5, 6 & 7 - ELCINA; 3 - MAIT; 4 - ICA; Spotlight on Indian Electronics 2018-19 | 56

Make in IndiaComputer Hardware However, the sector is dependent on imports and foreign technology. Recently, few domestic small and medium scale companies have comeComputer hardware comprises of Desktops, Laptops, Note Books, up and they have the capability to absorb technology and meet stringentTablets/ Net Books, Servers, other computing devices, Microprocessor requirements of strategic equipment. Some of these companies providebased systems and Computer peripherals. With the advent of technology, EMS services and meet critical supply requirements of MNCs as well asvarieties of mobiles, viz., smart phones and hand-held devices with Defence PSUs. These include companies such as Rangsons, Centumthe capabilities/ power / features of computers have been entering the Electronics, Kaynes Technology, Data Patterns and more. Some of themarket. Hence, the usage of conventional Desktops has diminished larger Indian business groups are foraying into strategic electronics sectorfor personal purposes. However, the usage of the computers and and these include, Tata, L&T, Wipro and HCL, who have the capabilityits peripherals in commercial, industrial and offices is likely to grow and resources to take up big offset projects and collaborate with globalat a steady pace. The Indian computer hardware Industry has been leaders. As per ELCINA, the production of Strategic Electronics has grownundergoing a change in its product composition. The production of from `18,055 crore during 2015-16 to `20,760 crore during 2016-17.computer hardware increased from `19,885 crore in 2015-16 to `20,382 The production is estimated to be about `23,562 crore during 2017-crore in 2016- 17, exhibiting a growth rate of 2.5%. It is expected to reach 18, exhibiting a growth of about 13.5% over 2016-17. India’s defence,to about `21,401 crore during the year 2017-18, exhibiting a growth rate aerospace and nuclear sectors are poised for substantial growth on theof about 5%. back of economic growth and the need to maintain national and energy security. The role of IT in defence is also expanding with the focus onMobile Phones cyber security.The Mobile handsets sector has emerged as the champion category Electronic Componentsunder the ‘Make in India’ initiative of the Government. There has beenmassive growth in Mobile handsets and components manufacturing The policies and schemes of the Government, including, inter-alia, rationalization of tariff structure,and India has emerged as the new manufacturing destination for mobilehandsets and components. Phased Manufacturing Programme (PMP), Modified Special Incentive Package Scheme (M-SIPS) andMobile handsets and components manufacturing activity continued toaccelerate during 2017-18. As many as 120 manufacturing units of Mobile notification of electronics products under the Public Procurementhandsets and components have been set up in India during (Preference to Make in India), Order 2017 for the growth of electronics sector, under the umbrella of ‘Make in India’ and ‘Digital India’the past three years. Out of these, about 59 units are producing mobile Programmes and increase in the customs duty on LED Lights, Set Tophandsets and rest of them are engaged in manufacturing various Boxes (STBs), Energy Metres, Flat Panel TVs, Mobile Phones, Microwavecomponents of mobile handsets, such as chargers/ adapters, battery Ovens etc., will have a cascading positive impact on the domestic demand for relevant components. It is also expected that the exportpacks, wired headsets, mechanical parts, USB cables etc., spread in the components segment shall witness a gradual upward trend asacross India. Most of the big companies associated with the mobile Merchandise Exports from India Scheme (MEIS) benefit for electronichandset manufacturing eco-system in the world are now in India. Names components has also been increased. The focus by the Government andlike Foxconn, Samsung, Wistron (Apple), Micromax, Intex, Lava, HTC, the Industry on Electric Vehicles (EVs) will also add value to the sector,Huawei, Vivo, Oppo, Pegatron, Xiaomi, HMD (Nokia) etc. are currently encouraging local manufacturing. As per ELCINA, Electronic Industrieshaving significant manufacturing operations in India. India’s dependency Association of India, the domestic production of electronic componentson imported handsets has drastically reduced due to the growing for the year 2017-18 is estimated to be about `58,351 crore vis-à-vismanufacturing activity of handsets during the past couple of years. `52,099 crore during 2016-17, exhibiting a growth of about 12%.Consequently, drop-in-growth of imports has been approx. 30% in 2016-17 over 2015-16, which is estimated to continue further to reach about It is, however, noteworthy that a significant share (over 70%) of this25% in the current financial year 2017-18 over 2016-17. component production is being exported leaving about 25% for domestic consumption, which is used in domestic electronic equipment production.The production of Mobile handsets grew to approx. `90,000 crore in Majority of electronic components are not manufactured in the country2016-17 compared to `54,000 crore in 2015-16, exhibiting a growth rate and have to be imported. As such, Government has been taking proactiveof about 66%, whereas, the production of Mobile handsets is estimated measures for promotion of domestic manufacturing of electronicto be about `1,32,000 crore in 2017-18. In volume terms, production grew components.to about 175 million in 2016-17, over 110 million in 2015-16, exhibiting agrowth of about 60%, which is further estimated to grow to 225 million The emerging high growth areas for domestic manufacturing are LEDunits in 2017-18. lighting, Automotive electronics, Energy meters, Solar energy, Mobile Phones and IT products apart from the existing sectors, viz.,India has the second largest wireless network in the world. The countryhas witnessed a significant rise in manufacture of mobile handsets telecommunications, consumer electronics and industrial electronics,during the last three years. The value share of mobile handsets industry which are driving the growth of electronic components manufacturing inin the total electronics segment in India is estimated to be nearly 35%, the country. The Indian electronic component production is dominated bywhich makes mobile handsets industry the largest electronics vertical. electro-mechanical components (like printed circuit boards, connectors,Several initiatives have been taken during the year leading to significant etc.,) with 29% share and passive components (like wound components,investments in new manufacturing operations. Some of the important capacitors, resistors, etc.) with 24% share. Further, the shares of activeinitiatives like Phased Manufacturing Programme (PMP) for mobile components (like ICs, diodes, transistors, picture tubes, etc.) and thehandsets have played a key role to transform the manufacturing space. associated components (like optical disc, magnets, RF tuners etc.) of the components industry are about 18% and 29%, respectively.Strategic Electronics The Electronics Manufacturing Services (EMS) industry in India isElectronics is a key area of defence technologies and become a vital growing rapidly and key global players as well as a number of domesticcomponent of nearly all the weapon companies are operational in the country. This segment needs very high efficiency of operations to stay profitable. Availability of components andsystems, platforms and equipment designed and developed for an effective supply chain is vital for EMS companies for their growth.defence purpose. The strategic electronics segment consists of Domestic companies have generally followed the business model ofMilitary Communication systems, Radars and Sonars, Network Centric staying in low-volume and high-mix business segments, where thesystems, Electronic Warfare systems, Weapon systems, Satellite based margins are better. However, the EMS players need to operate in high-Communication, Navigation and Surveillance systems, Navigational volume and low-margin segments to compete with the global players.aids, Underwater electronic systems, Infra-Red (IR) based detection andranging system, Disaster management system, Internal security systemetc.Spotlight on Indian Electronics 2018-19 | 57

Make in IndiaLight Emitting Diodes (LEDs) Products approximately `36,500 crore by 2020. The of ploughed back profits for 5 years thereafter. global market for automotive electronics is set The Electronics Hardware Technology ParkOne of the driving forces for growth in to account for 230 Billion US $ in 2020, from 140 (EHTP) Scheme is an export oriented schemeelectronics manufacturing and for growing Billion US $ in 2010. Some key technologies for undertaking manufacturing of electronicelectronic components demand is the Indian used in automotive electronics are as Anti-lock goods. Merchandise Exports from IndiaLighting market. The demand for energy Braking System (ABS), Body Control Module Scheme (MEIS) benefits are available for exportefficiency has brought forward an immediate (BCM), Tyre Pressure Monitoring System of electronic goods under the Foreign Tradeneed for more energy efficient products, (TPMS), Electronic Power Steering (EPS) etc., Policy (FTP 2015-20). The other schemes forsuch as Light Emitting Diode (LED) products. while parking, cam, crank and oxygen sensors export promotion are Export Promotion CapitalLED is the choice for next generation energy are the key sensors to be focused. Goods (EPCG) Scheme, Duty Exemptionefficient lighting for its technical and economic and Remission Schemes, Duty Free Importvirtues. Many countries have set LED as Medical Electronics Authorization (DFIA) Scheme, Deemed Exports,the national strategic industry. It is foreseen etc. Due to the effective steps taken, exportsthat LED products will have a penetration Medical devices play a crucial role from the have been showing signs of improvementof about 75% by 2020. LED products save diagnosis to the after-care phase of medical during the year 2017-18, as compared to theabout 70% and 50% energy, as compared treatment and year 2016-17. As per the Directorate General ofto the use of Incandescent Lamps (IL) and CommercialFluorescent Lamps (FL), respectively. Over significantly impact affordability of and accessthe years, opportunities for Light Emitting to healthcare. As per the Annual Report of Intelligence and Statistics (DGCI&S) data, theDiodes (LEDs) have increased in automobiles, Department of Pharmaceuticals, the global export of electronic goods was US $ 5962.9communications, signage, signaling, medical devices market is expected to grow to Million (`39,979.6 crore) during 2016-17, asarchitecture and entertainment sectors. The US $ 332 billion by 2020, from an estimated US compared to US $ 5959.5 Million (`39,063.5opportunity for LEDs in the general space $ 228 billion in 2015 due to rising prevalence of crore) during 2015-16.illumination segment of residential and chronic diseases; ageing population; increasingcommercial buildings is expanding rapidly. As income and affordability, resulting in higher Importsper ELCINA, the LED Products manufacturing in demand & utilization of healthcare services. TheIndia is estimated to reach `9,630 crore in 2017- Indian market is among the top twenty in the As per the DGCI&S data, the total import of18, as compared to the production of about world by market size, and fourth in Asia after Electronics into India in 2016-17 was US$`7,134 crore in 2016-17, exhibiting a growth of Japan, China and South Korea. Indian market is 42,878.9 millionabout 35%. import–dependent to the extent of 70%. (Rs.2,87,558 crore), as compared to the importAutomotive Electronics Exports during the preceding year 2015-16, which was about US$With the growth of Automobile industry and the Government has taken several measures for theincreasing digitization of automobile controls, growth of the exports of Electronics Hardware 40,939.8 million (Rs.2,68,105.3 crore), anAutomotive electronics has come to occupy sector. Special Economic Zones (SEZs) set up increase of 4.74% in US $ terms and 7.26% inan important segment of the electronics to enable hassle-free manufacturing and trading rupee terms.industry. Automotive Component Manufacturing for export purposes and EHTP units are theAssociation (ACMA) has projected that Indian major contributors to exports. 100% Income TaxAutomotive Electronics Sector will reach exemption on export profits is available to SEZ Units for 5 years, 50% for next 5 years and 50% Spotlight on Indian Electronics 2018-19 | 58

ManufacturingSector in IndiaIntroduction India is on the path of becoming the government’s push to encourage Manufacturing has emerged as hub for hi-tech manufacturing as production of battery chargers. one of the high growth sectors global giants such as GE, Siemens, Setting up of these factories is in India. The government had HTC, Toshiba, and Boeing have expected to lead to production oflaunched the ‘Make in India’ program either set up or are in process of 1.46 billion chargers and generationto place India on the world map as a setting up manufacturing plants in of 0.8 million jobs.manufacturing hub and give global India, attracted by India’s market ofrecognition to the Indian economy. more than a billion consumers and • Government of India is planningIndia is expected to become the fifth increasing purchasing power. to invite bids for setting up of 20largest manufacturing country in the Gigawatts (GW) of solar powerworld by the end of year 2020. Cumulative Foreign Direct Investment capacity with the objective of (FDI) in India’s manufacturing sector boosting domestic manufacturing ofMarket Size reached US$ 72.31 billion during April solar power equipment. 2000-September 2017.The Gross Value Added (GVA) at • JSW Energy has signed abasic constant (2011-12) prices India has become one of the most memorandum of understandingfrom the manufacturing sector in attractive destinations for investments (MoU) with the Government ofIndia grew 7.9 per cent year-on-year in the manufacturing sector. Some Gujarat, for setting up an electricin 2016-17, as per the first revised of the major investments and vehicle (EV) manufacturing unit inestimates of annual national income developments in this sector in the Gujarat at an estimated cost of Rspublished by the Government of recent past are: 4,000 crore (US$ 608.88 million).India. Under the Make in Indiainitiative, the Government of India • Mahindra and Mahindra is planning • With an aim to increase itsaims to increase the share of the to start operating a fleet of electric presence in India, Denmark-basedmanufacturing sector to the gross cabs and supplying parts to Electric heating ventilation and air-domestic product (GDP) to 25 per Vehicle (EV) manufacturers. conditioning (HVAC) giant, Danfoss,cent by 2022, from 16 per cent, and is planning to take its manufacturingto create 100 million new jobs by • Grasim Industries has received localisation to 50 per cent as well as2022. Business conditions in the clearance for expansion of its plant at double its supplier base in India byIndian manufacturing sector continue Vilayat. The expansion will entail an 2020.to remain positive. investment of Rs 2,560 crore (US$ 396.8 million) Government InitiativesInvestments • Over 350 mobile charger factories The Government of India has takenWith the help of Make in India drive, are expected to be set up in several initiatives to promote a India by 2025, on the back of the healthy environment for the growth Spotlight on Indian Electronics 2018-19 | 59

Manufacturing Sector in Indiaof manufacturing sector in the country. Some of the notable initiatives and Source: MOSPI, News Articlesdevelopments are: cent, respectively.• In Union Budget 2018-19, the Government of India reduced the incometax rate to 25 per cent for all companies having a turnover of up to Rs 250 The electronic goods industry is one of the fastest growing industries andcrore (US$ 38.75 million). is expected to be worth US$ 400 billion by 2020. Government is working on an export-oriented policy for Electronic products. The idea behind• Under the Mid-Term Review of Foreign Trade Policy (2015-20), the this policy is to promote greater exports of electronics and drive largerGovernment of India increased export incentives available to labour investments by setting up port-based electronic manufacturing clusters.intensive MSME sectors by 2 per cent. Also, as of November 2017, Ministry of Electronics and Information Technology is going to come up with a new electronics manufacturing• The Ministry of Electronics and Information Technology is in the process policy and is in process of setting up industry-specific groups.of formulation of a new electronics manufacturing policy. The aim of thenew policy will be to create an ecosystem of manufacturing in the country, The Government of India has been supportive towards this growth. It setenable India to become a significant global player in some of these up Electronic Hardware Technology Parks (EHTPs), Special Economiccategories. Zones (SEZs) and brought about a favourable climate for Foreign Direct Investment (FDI). The government has also increased liberalisation and• Ministry of Home Affairs liberalised Arms Rules to boost ‘Make in India’ relaxed tariffs to promote growth in the sector. In addition, it has given themanufacturing policy of the government. The liberalisation of the policy nod to Modified Special Incentive Package Scheme (MSIPS) under whichis expected to encourage investment in the manufacturing of arms and the central government will be offering up to US$ 1.7 billion in benefits toammunition and weapon systems and promote employment generation. the electronics sector in next five years.• The Government of India has launched a phased manufacturing The growing customer base and the increased penetration in consumerprogramme (PMP) aimed at adding more smartphone components durables segment have provided enough scope for the growth ofunder the Make in India initiative thereby giving a push to the domestic the Indian electronics sector. Also, digitisation of cable could lead tomanufacturing of mobile handsets. increased broadband penetration in the country and open up new avenues for companies in the electronics industry.• The Government of India is in talks with stakeholders to further easeforeign direct investment (FDI) in defence under the automatic route to 51 Advantage Indiaper cent from the current 49 per cent, in order to give a boost to the Make Robust Demand:in India initiative and to generate employment. • Huge domestic market with a rapidly increasing middle class and• The Ministry of Defence, Government of India, approved the “Strategic overall population.Partnership” model which will enable private companies to tie up withforeign players for manufacturing submarines, fighter jets, helicopters and • By 2030, Indian middle class is expected to have the second largestarmoured vehicles. share in global consumption at 17 per cent.• The Union Cabinet has approved the Modified Special Incentive Increasing Investment:Package Scheme (M-SIPS) in which, proposals will be accepted tillDecember 2018 or up to an incentive commitment limit of Rs 10,000 crore • Investments in the Indian manufacturing sector have been on the rise,(US$ 1.5 billion). both domestic and foreign. FDI in the sector reached US$ 4.09 billion between April – September 2017Road Ahead • Most sectors are open to 100 per cent FDI under automatic route.India is an attractive hub for foreign investments in the manufacturingsector. Several mobile phone, luxury and automobile brands, among Competitive Advantage:others, have set up or are looking to establish their manufacturing basesin the country. • Increasing share of young working population in the total population. India can achieve its full manufacturing potential as it looks to benefitThe manufacturing sector of India has the potential to reach US$ 1 trillion from its demographic dividend and a large workforce over the next 2-3by 2025 and India is expected to rank amongst the top three growth decades.economies and manufacturing destination of the world by the year 2020.The implementation of the Goods and Services Tax (GST) will make Indiaa common market with a GDP of US$ 2.5 trillion along with a population of1.32 billion people, which will be a big draw for investors.With impetus on developing industrial corridors and smart cities, thegovernment aims to ensure holistic development of the nation. Thecorridors would further assist in integrating, monitoring and developing aconducive environment for the industrial development and will promoteadvance practices in manufacturing.The Gross Value Added (GVA) from the manufacturing sector is estimatedat US$ 326.3 billion in FY18. The sector’s contribution to the country’sGDP stood at 16.51 per cent in 2016. Quarterly GVA at basic prices frommanufacturing sector grew by seven per cent in the second quarter ofFY18. India has been ranked at 30th position on a global manufacturingindex, ahead of BRICS peers, Brazil, South Africa and Russia.During April-December 2017, Index of Industrial Production for Mining,Manufacturing and Electricity grew 2.8 per cent, 3.8 per cent and 5.1 per Spotlight on Indian Electronics 2018-19 | 60

Manufacturing Sector in India• A resource-rich country with 4th largest reserves of coal in the world and 142 in 2015 to 130 in 2017 in the World Bank’s Ease of Doing Businessimmense potential for renewable energy like solar and hydro, ready to rankings.meet the needs of growing industry. • The initiative has led to a rise in India’s total FDI inflows to US$ 60.1Policy Support: billion in 2016-17 from US$ 34.9 billion in 2014-15.• National Investment and Manufacturing Zones developed to create an • India has been ranked at 30th position on a global manufacturing index,ecosystem for industries in India. ahead of BRICS peers, Brazil, South Africa and Russia.• Initiatives like ‘Make in India’ and sector specific incentives to various Skill India Initiativemanufacturing companies, aiming to make India a global manufacturinghub. Skill India Campaign was launched in 2015 and aims to train over 400 million people in various skills. It involves various schemes such as• Skill India, a multi skill development programme has been started to National Skill Development Mission, Pradhan Mantri Kaushal Vikas Yojanaequip the workforce with the necessary skills required by the sector. and National Policy for Scheme Development and Entrepreneurship.Notable Trends in India’s Manufacturing Sector • Budget 2017-18 aims to extend Pradhan Mantri Kaushal Kendras from 60 to 600 districts of the country and also establish 100 India InternationalMajor Investments and Expansion into New Markets: As per India Skills Centres. These centres would offer advanced training and coursesManufacturing Barometer 2017, more than 50 per cent of respondents in foreign languages.in the industry are planning major investments and 62 per cent areplanning to expand into foreign markets. Along with major investments • The government allocated US$ 620.85 million for Skill Acquisition andconsolidation is happening in sectors like cement. Knowledge Awareness for Livelihood Promotion programme (SANKALP) which will impart market relevant training to 35 million youth.Additive Manufacturing: Popularly known as 3D printing, this newmanufacturing technology uses digital models to create products by • In 2017-18, US$ 341.47 million was also allocated for the next phase ofprinting layers of materials. This has huge potential in India with the rise of Skill Strengthening for Industrial Value Enhancement (STRIVE) which aimsmega projects coming up. Indian IT major Wipro in collaboration with EOS to improve quality and market relevance of training provided in Industrialmanufactured India’s first additive manufacturing engineered component Training Institutes (ITI’s).for ISRO’s GSAT19 communications satellite launch in June 2017. • As of June 2017, there were 13,353 ITI’s in India. Out of these aroundIndustrial Internet of Things (IIOT) and Industry 4.0: With the rise of IoT in 16.12 per cent were government run while other 83.88 per cent wereconsumer tech, manufacturing sector has also started implementing this private.new network of sensors and actuators for data collection, monitoring,decision making and process optimisation over internet infrastructure. • Till December 2017, approximately 2.76 million candidates had beenData is a huge component of this whole setup and Indian companies trained under Pradhan Mantri Kaushal Vikas Yojana (PMKVY).have a lot of potential in this area with many large companies alreadybetting on big data and analytics. As an example, Indian Railways will Startup Indiabe rolling out locomotives with solutions like remote diagnostics andproactive predictive maintenance and these trains will be part of a wider • Startup India campaign was launched in 2015 to encourage startups inecosystem connected to industrial internet. India and provide policy support to startups.Advanced Robotics: While standalone robotic workstations are • Under the Startup India action plan a startup is an entity which is headquartered in India, has been opened less than five years ago andalready common place even in Indian companies, advanced robotics use has revenue less than US$ 3.88 million.enhanced senses, dexterity, and intelligence to automate tasks or workalongside humans. • There are various benefits offered to registered startups under the scheme:Make in India Initiative As per the scheme no inspection regarding labour laws would be carried• Make in India initiative was launched in 2014 to encourage Indian as out for three years. Also, only self-certification is required for environmentalwell as multi-national companies to manufacture in India. After the launch law compliance.of the programme, India became the top destination globally for ForeignDirect Investment in 2015. • Startups can claim an 80 per cent rebate on their patent costs and get protection for Intellectual Property Rights (IPR’s).• It focuses on 25 sectors of the economy and 100 per cent FDI ispermitted in all these sectors except space, defence and new media. • Income Tax exemption is available for first three years after obtaining certificate from Inter-Ministerial Board. Capital Gains Tax exemption is also• A Make in India week covering various sectors was held in February available if the funds are invested in a fund of funds recognised by the2016 which was attended by government and business delegations from government.over 70 countries. By the end of the event investment commitments ofover US$ 240 billion had been received. • Startups in manufacturing sector are exempted from the criteria of prior turnover/experience without relaxation in quality standards or technical• Special cells called ‘Japan Plus’ and ‘Korea Plus’ have been made parameters in public procurement.under the initiative to facilitate investments and fast track proposals fromJapan and Korea respectively. • Japanese firm Softbank pledged total investments of US$ 10 billion in startups. It has already invested US$ 2 billion in India.• Five industrial corridors are being developed across the country whichwill act as supporting infrastructure to the manufacturing sector. •In 2016, Oracle announced setting up of 9 incubation center’s across the country.• In May 2017, construction of 10 Pressurised Heavy Water Reactorswas approved at an estimated cost of US$ 11 billion which is expected to • Budget 2017-18 reduced the Income tax from 30 per cent to 25 per centcreate 33,400 jobs. for companies with annual turnover of up to US$ 7.76 million.• In June 2017, appliance maker Midea announced its plan to construct a National Manufacturing Policynew manufacturing facility in Pune with an investment Rs 800 crore (US$124.17 million). • National Manufacturing Policy was introduced in 2011. It aims to increase the share of Manufacturing sector in India’s GDP to 25 per cent• In August 2017, the government announced a new Consolidated FDI and create 100 million jobs by 2021.Policy. The policy allows start-ups to raise money from Foreign VentureCapital Investors (FVCI’s) by issuing instruments such as convertible • The policy was introduced to create an enabling policy frameworknotes. and provide incentives for infrastructure development on Public Private Partnership (PPP) basis.• Since the launch of ‘Make in India’, India has moved up 12 spots from • Under the policy, National Investment and Manufacturing Zones (NIMZ’s) have been conceived as large industrial townships managed by a Special Purpose Vehicle (SPV). These SPV’s would ensure planning ofSpotlight on Indian Electronics 2018-19 | 61

Manufacturing Sector in Indiathe zones, pre-clearances for setting up industrial units and undertaking required for service tax, VAT, CST.other specific functions. • Manufacturers will also be able to optimise their supply chain for• Fourteen NIMZ’s have already been granted ‘in principle’ approval while business efficiency. Warehousing and location decisions will be taken onfour of them have been given final approval. the basis of economic efficiency such as costs and locational advantages instead of tax efficiency.• Central and State governments will provide exemptions, subjectto fulfillment of conditions by the SPV, from compliance burdens for • Assessment of income of manufacturer by many separate authoritiesindustries located in these zones. for VAT, Service Tax, Central Excise, etc. has been replaced by only three authorities – Central, State and Interstate.• Exemption from Capital Gains Tax on sale of plant and machinerywill be granted in case of re-investment of the capital gain amount Opportunities in Manufacturingfor purchase of plant and machinery within the same or Government Initiativesdifferent NIMZ within three years of sale. • For creating an eco-system to make India a global• A Technology Acquisition and Development hub for electronics manufacturing a provisionFund (TADF) has been launched for acquisition of US$115.62 million in 2017-18 in incentiveof appropriate technologies, creation of a schemes like M-SIPS and EDF.patent pool and development of domesticmanufacturing of equipment’s for • 100% FDI is allowed under the Electronicreducing energy consumption. System Design and Manufacturing Sector (ESDM).• In 2016, eight NMIZ’s wereannounced to be developed along Defence Manufacturingthe Delhi-Mumbai Industrial Corridor.Other than these, as of April 2017, • In Budget 2018-19, US$ 45.57 billionfourteen NIMZ’s have been granted was allocated to Defence.‘in-principle approval’, while three ofthem have been granted final approval • 31 per cent of India’s Defenceby the government. Budget is spent on capital acquisitions.• An amount of US$ 1.4 million • It is estimated that India will spendhas been allocated for Scheme for over US$ 250 billion on defence in theimplementation of National Manufacturing next decade.Policy in Budget 2017-18. • A target of US$ 2 billion of defenceImpact of GST on Manufacturing exports has been set for the two yearsSector starting 2016-17.Goods and Services Tax (GST) is expected to provide • The FDI limit in the defence sector has beena major boost to the manufacturing sector. It has subsumed raised to 100 per cent.various taxes that were earlier imposed on manufacturers. Some of theways in which GST will help manufacturers are: Electronics goods manufacturing:• Before GST, excise duty had to be paid as a specified percentage of • As of November 2017, Ministry of Electronics and InformationMaximum Retail Price (MRP). However, under GST the excise duty will Technology is going to come up with a new electronics manufacturinghave to be paid on the ex-factory transaction value leading to lower tax policy and is in process of setting up industry-specific groups.burden. • The electronic goods industry is one of the fastest growing industries.• Pre-GST Central taxes could not be offset against State wise taxes and Demand for electronic goods is increasing at a CAGR of 22 per cent andthere were cascading layers of taxation. With the introduction of GST, such is expected to reach US$ 400 billion by 2020.issues get addressed as set-offs are allowed across the production andvalue chain. • It is expected that domestic production of electronic goods which is growing at 27 per cent may touch US$ 100 billion by 2020.• Subsuming of entry taxes for inter-state transfers will reduce the cost ofgoods and services, thereby boosting demand. • The government has launched various schemes to boost ESDM sector in India. Modified Special Incentive Package Scheme (M-SIPS) is one• GST will provide a simple single point registration unlike the old regime scheme which aims to achieve ‘Net Zero Imports’ in the industry by 2020.in which each production facility had to be registered separately. Electronic Development Fund (EDF) is a fund of funds which will invest in ‘daughter funds’ which invest in companies in the field of electronics and• Under the new tax law, manufacturers can claim input tax credit on input IT.goods which will have positive impacts on cash flows. • In September 2017, the government issued a notification for 10• Another benefit would be the provision of a single Goods and Services electronic products under Public Procurement Order 2017. Under theTax Identification Number (GSTIN) instead of the multiple registrations order, for procurement of goods for which there is sufficient local capacity and local competition, and where the estimated value of procurement is US$ 77,772 or less, only local suppliers shall be eligible. Spotlight on Indian Electronics 2018-19 | 62

FDI in IndiaApart from being a critical driver of flowing into the country. The government that the telecommunications sector economic growth, foreign direct has taken many initiatives in recent years attracted the highest FDI equity inflow investment (FDI) is a major source such as relaxing FDI norms across sectors of US$ 6.14 billion, followed by computer of non-debt financial resource such as defence, PSU oil refineries, tele- software and hardware – US$ 5.16 bil-for the economic development of India. com, power exchanges, and stock exchang- lion and services – US$ 4.62 billion. MostForeign companies invest in India to es, among others. recently, the total FDI equity inflows fortake advantage of relatively lower wag- the month of December 2017 touched US$es, special investment privileges such as Market size 4.82 billion.tax exemptions, etc. For a country where During April-December 2017, Indiaforeign investments are being made, it also According to Department of Industrial Poli- received the maximum FDI equity in-means achieving technical know-how and cy and Promotion (DIPP), the total FDI in- flows from Mauritius (US$ 13.35 billion),generating employment. vestments in India during April-December followed by Singapore (US$ 9.21 billion),The Indian government’s favourable policy 2017 stood at US$ 35.94 billion, indicating Netherlands (US$ 2.38 billion), USA (US$regime and robust business environment that government’s effort to improve ease of 1.74 billion), and Japan (US$ 1.26 billion).have ensured that foreign capital keeps doing business and relaxation in FDI norms Indian impact investments may grow 25 is yielding results. Data for April-December 2017 indicates Spotlight on Indian Electronics 2018-19 | 63

FDI in Indiaper cent annually to US$ 40 billion from direct investment (FDI) proposals leading per cent to reach US$ 114.4 billion betweenUS$ 4 billion by 2025. to a total foreign investment worth Rs FY 2015-16 and FY 2016-17, as against US$ 24.56 crore (US$ 3.80 million) in October 81.8 billion between FY 2011-12 and FYInvestments/ developments 2017. 2013-14. • Singapore’s Temasek will acquire a 16 • Walmart India Pvt Ltd, the Indian arm ofIndia has become the fastest growing per cent stake worth Rs 1,000 crore (US$ the largest global retailer, is planning to setinvestment region for foreign investors in 156.16 million) in Bengaluru based private up 30 new stores in India over the coming2016, led by an increase in investments in healthcare network Manipal Hospitals three years.real estate and infrastructure sectors from which runs a hospital chain of around • US-based ecommerce giant, Amazon, hasCanada, according to a report by KPMG. 5,000 beds. invested about US$ 1 billion in its IndianSome of the recent significant FDI an- • France-based energy firm, Engie SA and arm so far in 2017, taking its total invest-nouncements are as follows: Dubai-based private equity (PE) firm ment in its business in India to US$ 2.7• In February 2018, Ikea announced its Abraaj Group have entered into a partner- billion.plans to invest up to Rs 4,000 crore (US$ ship for setting up a wind power platform • Kathmandu based conglomerate, CG612 million) in the state of Maharashtra to in India. Group is looking to invest Rs 1,000 croreset up multi-format stores and experience • US-based footwear company, Skechers, is (US$ 155.97 million) in India by 2020 in itscentres. planning to add 400-500 more exclusive food and beverage business.• In November 2017, 39 MoUs were signed outlets in India over the next five years and • International Finance Corporation (IFC),for investment of Rs 4,000-5,000 crore also to launch its apparel and accessories the investment arm of the World Bank(US$ 612-765 million) in the state of collection in India. Group, is planning to invest about US$ 6North-East region of India. • The government has approved five billion through 2022 in several sustainable• In December 2017, the Department of Foreign Direct Investment (FDI) proposals and renewable energy programmes inIndustrial Policy and Promotion (DIPP) from Oppo Mobiles India, Louis Vuitton India.approved FDI proposals of Damro Furni- Malletier, Chumbak Design, Daniel Wel- • SAIC Motor Corporation is planningture and Supr Infotech Solutions in retail lington AB and Actoserba Active Wholesale to enter India’s automobile market andsector, while Department of Economic Pvt Ltd, according to Department of Indus- begin operations in 2019 by setting up aAffairs, Ministry of Finance approved two trial Policy and Promotion (DIPP). fully-owned car manufacturing facility inFDI proposals worth Rs 532 crore (US$ 81.4 • Cumulative equity foreign direct invest- India.million). ment (FDI) inflows in India increased 40 • Soft Bank is planning to invest its new• The Department of Economic Affairs,Government of India, closed three foreign Spotlight on Indian Electronics 2018-19 | 64

FDI in India northeast. sTthaekeGhoovledrenrms teonCftuoorvftehInredrSietaoaisrsyeinfotraelikgsnwdiitrhect investment (FDI) in defence under thedevice versus a load current of U2, TPS62821. automatic route to 51 per cent from theOutput Load Regulation current 49 per cent, in order to give a boost to the Make in India initiative and to gen- erate employment. In January 2018, 100 per cent FDI was allowed in single brand retail through automatic route along with relaxations in rules in other areas. The Central Board of Direct Taxes (CBDT) has exempted employee stock options (ESOPs), foreign direct investment (FDI) and court-approved transactions from the long term capital gains (LTCG) tax, under the Finance Act 2017. The Government of India is likely to allow Figure 13. Start-Up Waveform1:0VI0Np=2e4rVc,eIonutt2f=o0rAeign direct investment (FDI) in cash and ATM management com-Figure 11. LMR36006 Load Regulation: VOUT1 vs IOUT2 panies, since they are not required to com- ply with the Private Securities Agencies Regulations Act (PSARA). Road ahead India has become the most attractiveilaUGtGeTIIfennnaosnhoSasvdoieSii$vtdennit-eveaeMs1gtcipretsrrcSF0Franmtsasieoiirss0etnggimcankianeunemuiknbsvrseegnrerieemetiebdkntelntlr1res-lsseJatg2ytUitea.e.roc1whtorpaoT.pho1nn2efpPaifn0abmSttnIpWsCn16edneteroI27aacddaoogs8nm,hrtiwvi2eveFktann1iahemsieigtLohlcnietfittoulelpaovoasaeosGrrsreredeagcttfoomseghoRreyi1ctvaavmecim2esaegfrnsueusudnrseecesslnnshanddenreotomdotiststIonwsu,nihyniennin:dsisetnnnhVttduImtearenOoIsepmoonUdratonfpdfrTdirugaykfre2itot,opaervhrv.ust--tIOloUaTdImruaqDs(nai2nnFetpluporerDfdcaempiravrenargitIarteai)ihneudeosnplcp-laotgavagtIrehnrniptatuocaoiiaaldodmncfsppninoigttnJaaeopifeuaosfp-ncsrrpDrrmfJoalpntaeaaetelvhlsponsadsifpatecoaftrrebalhaaanruNvyrwttanctfeieoCvomdcotilsroetueornotheeaorphij.oieninnormngfdEtigdFlFFpnnoaia1eioiirnagaaggles0ndofluwarduutdrtijpeRwtrreretaaeeiihreeo1caonyetoa4vc11tlneVup.stsnweI34SkOnononFiditssisnadndsUoutsshhrvaihaeretTetaoof-elufrthoU2s’wwttassttm.hrepeiatrnssnErmeWekdTttfg-tehhaoehveerneefsstottraamrrtt:--VpIiiTbccpE2euunnnIoemhqy0reppNvvdnin1ruev=8eeewwit8diaaa2Wss.r,taa8-4u’tttgyasr1vvemmVcioenpee9Agn,tccrdeffeeIe.rgsooloeorodnndsurrtnnmmmsocthttBb2tsssecef=auyamaaonidirra1mnnttretEokAtatakbtimhemiIpronnhy2tekhtneede4iefFad2orsoi-tYs(cV4ragtnrEoiai-isv2VciiMngtgnmtset0alpgrpirnoPe1oittuarnpeMxbE8hwotcdugpaA-edatatt1lei)n1uthvrga9.pchd2kcerntoaaetotnednmorfttw(deot17GpPnoost.-tlsrro4vDnehAoiiaertvsvPpigshdruaan)etr.s(ttraoireGe,vnkwaePeFsy)Y SpotligEhLt EonTIinmdeiasn| E33lec| tJruolnyi,c2s0210818-19 | 65

Union Budget Union Budget of India (2018-19) The Union Budget for 2018-19 focuses on uplifting the rural econ- omy and strengthening of the agriculture sector, healthcare for the economically less privileged, infrastructure creation and improve- ment in the quality of education of the country. Highlights of Union Budget • An Agri-Market Infrastructure Fund 2018-19 will be started with a corpus of Rs 2,000 Overview of the economy crore (US$ 314.41 million). • The GDP grew at 6.3 per • A restructured National Bamboo Mis- cent in the second quarter sion will be launched with a total outlay of 2017-18 and is expect- of Rs 1,290 crore (US$ 202.79 million). ed to grow at 7.2-7.5 per • Allocation for the National Rural Live- cent in the second lihood Mission is increased to Rs 5,750 half of 2017-18. crore (US$ 903.93 million) for 2018-19. • Growth for 2018-19 • Health, Education and Social Protec- is forecasted at tion 7.4 per cent by • Budgeted expenditure on health, the International education and social protection for Monetary Fund 2018-19 is Rs 1.38 lakh crore (US$ 21.69 (IMF). billion) which is expected to increase by • Exports are expect- Rs 15,000 crore (US$ 2.36 billion) after additional allocations during the year. ed to grow at 15 per cent in 2017-18. • Role of technology in the education • Fiscal deficit target for 2018-19 is set sector will be increased with a focus on at 3.3 per cent of the GDP. increased digital intensity. • A new initiative named ‘Revitalising • Fiscal deficit for 2017-18 is revised to Infrastructure and Systems in Education Rs 5.95 lakh crore (US$ 93.54 billion) (RISE) by 2022’ will be launched with an at 3.5 per cent of the GDP. investment of Rs 1 lakh crore (US$ 15.72 billion) over the next four years. Agriculture and Rural • A total of Rs 1,200 crore (US$ 188.65 Economy million) is allocated for Health and Wellness Centres under the National • The government is committed Health Policy. towards doubling the farmers’ • National Health Protection Scheme income by 2022. will be launched, which will cover over • A total of Rs 14.34 lakh crore (US$ 10 million poor families with a cover- 225.43 billion) will be spent for creation age of up to Rs 5 lakh (US$ 7,860). This of livelihood and infrastructure in rural will be the world’s largest government areas. funded health care programme. • Minimum Support Price (MSP) for all • A total of 24 new government medical announced kharif crops will be at least colleges and hospitals will be set up. one and half times of their production Medium, Small and Micro Enterprises cost, similar to the majority of rabi (MSMEs) crops. • A total of Rs 3,790 crore (US$ 596.43 • Institutional credit to the agricul- million) has been provided for the ture sector is targeted at Rs 11 lakh MSME sector for credit support, capital crore (US$ 172.93 billion) for 2018-19, and interest subsidy and innovations. compared to Rs 10 lakh crore (US$ 157.2 • Formalisation in the MSME sector is billion) for 2017-18. happening at a fast pace after the intro- • A Fisheries and Aqua culture Infra- duction of the Goods and Services Tax structure Development Fund (FAIDF) (GST) and demonetisation. and an animal Husbandry Infrastructure Development Fund (AHIDF) will be started with a total corpus of Rs 10,000 crore (US$ 1.57 billion). Spotlight on Indian Electronics 2018-19 | 66

Union Budget• Online loan sanctioning facility for MSMEs will be revamped and facilitated and fast tracked.public sector banks and corporates will be brought on-board the • Under the Smart Cities Mission, projects worth Rs 2,350 croreTrade Electronic Receivable Discounting System (TReDS) platform (369.43 million) have been completed and projects worth 20,852which will be linked with the GSTN. crore (US$ 3.82 billion) are under progress. A total of 99 cities• Lending under the MUDRA Yojana is targeted at Rs 3 lakh crore have been selected under the mission with an outlay of Rs 2.04(US$ 47.16 billion). At present 76 per cent of loan accounts under lakh crore (US$ 32.07 billion).the scheme belong to women while more than 50 per cent belong • To promote tourism in the country, 10 prominent tourist sitesto SCs, STs and OBCs. will be developed into iconic tourism destinations• Additional measures will be taken by the government for growth • Around 35,000 km of road construction has been approved un-and successful operation of alternative investment funds. der the Phase-1 of the Bharatmala Pariyojana at an estimated cost of Rs 5.35 lakh crore (US$ 84.10 billion).Employment Generation Railways• As per an independent study conducted, over 7 million formal • Capital expenditure in the railways sector for 2018-19 is set at Rsjobs will be created in the country during 2018-19. 148,528 crore (US$ 23.35 billion).• The Government of India will contribute 12 per cent of the wag- • 12000 wagons, 5160 coaches and around 700 locomotives will bees of the new employees in the Employees’ Provident Fund for all procured during 2018-19.the sectors in the next three years. • Redevelopment of 600 major railway stations will be taken up.• As per proposed amendments in the Employees Provident Fund • Electrification of around 4,000 km of railway tracks is expectedand Miscellaneous Provisions Act, 1952, women employees’ to be commissioned in 2017-18.contribution to the EPF will be reduced to 8 per cent for the first • Work on eastern and western dedicated freight corridors isthree years of their employment with no change in employers’ under progress.contribution. This is done to promote more women employment • A dedicated institute to train manpower required for work onin the formal sector. high speed rail projects will be established in Vadodara.• A model aspirational skill centre is being set up in every districtof the country. Digital EconomyInfrastructure and Financial Sector Development • Budgetary allocation of Rs 3,073 crore (US$ 483.09 million) for the Digital India programme is made for 2018-19.• Investments in excess of Rs 50 lakh crore (US$ 786.02 billion) are • A national program will be initiated by NITI Aayog to increaserequired in the country’s infrastructure to increase the growth of efforts in the area of artificial intelligence.GDP and connect and integrate country’s transport network. • Mission on Cyber Physical Systems will be launched by the• Budgetary allocation for infrastructure is set at Rs 5.97 lakh crore Department of Science & Technology under which centres of(US$ 93.85 billion) for 2018-19. excellence for research, training and skilling robotics, artificial• All-time high allocations have been made to the rail and road intelligence, digital manufacturing, big data analysis, quantumsectors. communication and internet of things will be established and• Through the use of online monitoring system of PRAGATI, promoted.projects worth Rs 9.46 lakh crore (US$ 148.72 billion) have been • Budgetary allocation of Rs 10,000 crore (US$ 1.57 billion) is made in 2018-19 for telecom infrastructure. • 500,000 Wi-Fi hotspots will be set up by government to provide internet connectivity to over 5 million rural citizens. • Every individual enterprise in India will be assigned a unique ID. Disinvestment • A target of Rs 80,000 crore (US$ 12.58 billion) for disinvestment has been set for 2018-19. • Target of 2017-18 has been exceeded and receipts have crossed Rs 1 lakh crore (US$ 15.72 billion). • National Insurance Co. Ltd., United India Assurance Co. Ltd., and Oriental India insurance Co. Ltd., will be merged into a singleSpotlight on Indian Electronics 2018-19 | 67

Union Budget which have reported a turnover of up to Rs 250 crore (US$ 39.30 million) during 2016-17. This move is expected to benefit all theinsurance entity. MSMEs operational in the country.• A comprehensive Gold Policy will be framed in order to develop • Revenue loss from the reduction in the tax rate during 2018-19 isgold as an asset class. estimated at Rs 7,000 crore (US$ 1.1 billion).• A system for regulated gold exchanges across the country will be • A standard deduction of Rs 40,000 crore (US$ US4 628.9) isestablished. proposed for salaried individuals which will replace the present exemption of transport allowance and reimbursement of mis-Fiscal Management cellaneous medical expenses. The move will help middle class employees in reducing their tax liabilities. Revenue loss from the• Total budgeted expenditure for 2018-19 is set at Rs 2,442,213 move is estimated at Rs 8,000 crore (US$ 1.41 billion).crore (US$ 383.93 billion). • Exempted interest income on deposits with banks and post of-• Central Government’s debt to GDP ratio will be brought down to fices is proposed to be increased from the present Rs 10,000 (US$40 per cent, as per the recommendations of the Fiscal Reform and 157.2) to Rs 50,000 (US$ 786.02).Budget Management Committee. • Deduction limit for health insurance premium and/ or medi-• Growth in direct taxes for 2017-18 (up to January 15, 2018) has cal expenditure is proposed to be increased from the present Rsbeen 18.7 per cent while for 2016-17 it was 12.6 per cent. 30,000 (US$ 471.6) to Rs 50,000 (US$ 786.02).• Number of effective tax payers increased to 80.27 million by • Pradhan Mantri Vaya Vandana Yojana will be extended till 2020.2016-17 end from 60.47 million in 2015-16 end. • More concessions will be provided for the International Financial• Companies registered as Farmer Producer Companies with an Services Centre (IFSC).annual turnover up to Rs 100 crore (US$ 15.72 million) will get • Payments in excess of Rs 10,000 (US$ 157.2) by trusts and insti-100 per cent deduction for a period of five year starting 2018-19. tutions shall be disallowed and will be taxable. In case of non-de-The move is proposed in order to promote ‘Operation Greens’ and duction of tax by such entities, 30 per cent of the amount will be‘Sampada Yoajana’. disallowed and taxed.• Reduced tax rate of 25 per cent will be extended to companies • Long Term Capital Gains (LTCG) after January 31, 2018, exceeding Rs 1 lakh (US$ 1,572.04) will be taxed at 10 per cent without any indexation benefit. • A 10 per cent tax is proposed on distributed income by equity oriented mutual funds. • The proposed change in capital gains tax is expected to result in revenue gain of around Rs 20,000 crore (US$ 3.14 billion). • Cess on personal income tax and corporation tax is proposed to be increased from 3 per cent to 4 per cent. The new cess will be called ‘Health and Education Cess’. The move is expected to result in additional tax revenue of Rs 11,000 crore (US$ 1.73 billion). • Rollout of e-assessment across the country is proposed for great- er efficiency and transparency in direct tax collection. • Customs duty on mobile phones will be increased from 15 per- cent to 20 percent and 15 percent on certain parts of televisions. • Education Cess and Secondary and Higher Education Cess on imported goods will be abolished and will be replaced by a Social Welfare Surcharge at the rate of 10 percent of the aggregate duties of customs. • The name of the Central Board of Excise and Customs (CBEC) to the Central Board of Indirect Taxes and Customs (CBIC).Spotlight on Indian Electronics 2018-19 | 68

InfrastructureSector in India• Infrastructure related activities witnessed strong growth between April-September 2016.• The activities that registered the highest growth include export cargo (10 per cent), highway con-struction/widening (9.8 per cent), power generation (6.6 per cent), import cargo (5.8 per cent) andcargo at major ports (5.3 per cent).The infrastructure sector has become a Rs 6.92 trillion (US$ 107.64 billion) werefocus area of the Government of India. approved to build an 83,677 km roadUnder Union Budget 2018-19, US$ 92.22 network in the country. All villages in Indiabillion was allocated to the sector. will be connected through a road network by 2019 under Pradhan Mantri GramIncreased impetus to develop Sadak Yojana (PMGSY). In August 2017,infrastructure in the country is attracting a new Metro Rail Policy was announcedboth domestic and international players. to boost private investment in the sector.Private sector is emerging as a key player In January 2018, the National Investmentacross various infrastructure segments, and Infrastructure Fund (NIIF) partneredranging from roads and communications with UAE-based DP World to createto power and airports. In order to boost a platform that mobilise investmentsthe construction of buildings in the worth US$ 3 billion into ports, terminals,country, the Government of India has transportation, and logistics businessesdecided to come up with a single window in India. The Government is also workingclearance facility to accord speedy on improving energy infrastructure in theapproval of construction projects. country and investment opportunities worth US$ 300 billion will be available inSignificant allocation to the infrastructure the sector in the coming 10 years.sector in the 12th Five-Year Plan, andinvestment requirement of US$ 1 trillion Introductionis expected to create huge demand forconstruction equipment in India. The Infrastructure sector is a key driver forcountry needs around 55 new airports the Indian economy. The sector is highlyby 2030 with an investment of US$ responsible for propelling India’s overall36-45 billion. In the road’s sector, the development and enjoys intense focusgovernment’s policy to increase private from Government for initiating policiessector participation has proved to be a that would ensure time-bound creationboon for the infrastructure industry with a of world class infrastructure in thelarge number of private players entering country. Infrastructure sector includesthe business through the public-private power, bridges, dams, roads and urbanpartnership (PPP) model. During the next infrastructure development. In 2016,five years, investment through PPP is India jumped 19 places in World Bank’sexpected to be US$ 31 billion. Logistics Performance Index (LPI) 2016, to rank 35th amongst 160 countries.India has a requirement Market Sizeof investment worth Rs 50 Foreign Direct Investment (FDI)trillion (US$ 777.73 billion) in received in Construction Development sector (townships, housing, builtinfrastructure by 2022 to have up infrastructure and construction development projects) from April 2000sustainable development in the to September 2017 stood at US$ 24.7 billion, according to the Department ofcountry. Industrial Policy and Promotion (DIPP).Sectors like power transmission, roadsand highways and renewable energy willdrive the investments in the coming years.In October 2017, road projects worth SpSoptloigtlhigt hotnoInndIniadniaEnleEcletrcotnroicnsic2s021081-189-1|969

Infrastructure in IndiaThe logistics sector in India is expected to increase at a CompoundAnnual Growth Rate (CAGR) of 10.5 per cent, from US$ 160 billion in 2017to US$ 215 billion by 2020, backed by the implementation of the Goodsand Services Tax (GST), as per the Economic Survey 2017-18.Investments country and has launched new flagship urban missions like the Pradhan Mantri Awas Yojana (Urban), Atal Mission for Rejuvenation and UrbanIndia will require investments of over US$ 4.5 trillion by 2040 for the Transformation (AMRUT), and Swachh Bharat Mission (Urban) under thedevelopment of its infrastructure, according to the Economic Survey 2017- urban habitat model.18. India is witnessing significant interest from international investors in theinfrastructure space. Some key investments in the sector are listed below. Road AheadA total of five Namami Gange projects worth Rs 295.01 crore (US$ 46.54 India’s national highway network is expected to cover 50,000 kilometresmillion) have been approved by the National Mission for Clean Ganga by 2019, with around 20,000 km of works scheduled for completion in(NMCG), of which three projects in West Bengal and one in Uttarakhand the next couple of years, according to the Ministry of Road Transport andinvolve sewage management and one project in Varanasi involves work Highways.related to ghat improvement. The Government of India is devising a plan to provide wi-fi facility toThe Ministry of Road Transport and Highways, Government of India, 550,000 villages by March 2019 for an estimated cost of Rs 3,700 croreinvested Rs 14,916 crore (US$ 2.32 billion) for the Special Accelerated (US$ 577.88 million), as per the Department of Telecommunications,Road Development Programme for North East (SARDP-NE) and Rs 4,095 Government of India.crore (US$ 635.6 million) for the National Highway (Original) over the pasttwo years to improve the road infrastructure in India’s north eastern region. India and Japan have joined hands for infrastructure development in India’s north-eastern states and are also setting up an India-JapanGovernment Initiatives Coordination Forum for Development of North East to undertake strategic infrastructure projects in the northeast.The Road Transport & Highways Ministry has invested around Rs 3.17trillion (US$ 47.7 billion), while the Shipping Ministry has invested around Sweden is interested in smart cities development in India and hasRs 80,000 crores (US$ 12.0 put forward a Common Plan of Action for developing sustainablebillion) in the past two and a and environment-friendly public transport solutions and solid wastehalf years for building world management for the smart cities under development.class highways and shippinginfrastructure in the country.The Government of India isexpected to invest highly in theinfrastructure sector, mainlyhighways, renewable energyand urban transport, prior to thegeneral elections in 2019.The Government of India istaking every possible initiative toboost the infrastructure sector.Some of the steps taken in therecent past are being discussedhereafter.The 90 smart cities shortlistedby the Government of Indiahave proposed projects withinvestments of Rs 191,155crore (US$ 30.02 billion) whichinclude Projects Focusing onRevamping an Identified Area(Area Based Projects) withinvestment of Rs 152,500 crore(US$ 23.95 billion).Contracts awarded under theSmart Cities Mission wouldshow results by June 2018as the work is already in fullswing. The Government of Indiais working to ensure a goodliving habitat for the poor in theSpotlight on Indian Electronics 2018-19 | 70

US-China Trade War and India's Emergence to the Fore

US-China Trade WarMost nations in the world today seem to be adopting a protection- of those slow motion realignments that enliven history, India’s tra-ist stance while doing global business. Leaders around the world ditional security concerns—Pakistan (in the form of militant Islam)are aiming to promote the local industries of their countries. and China (irredentism and revisionism)—have finally becomeBut, since capitalism rules the roost in our world, markets are Washington’s immediate and long-term security concerns as well.completely open. As a result, global business becomes extremely The threat of terrorism and the need to contain Chinese regionalimportant for countries to stay economically strong. muscularity, along with growing economic synergy in the high-Addressing a security conference in India in March 2016, Admiral tech sector, transformed U.S. ties with India. So, in 2002, three de-Harry Harris, Commander of U.S. Pacific Command, noted “with cades after Nixon’s opening with China led “non-aligned” India toadmiration India’s peaceful resolution of disputes with neigh- ally with the USSR and eventually go nuclear, President George W.bours in the waters of the Indian Ocean,” while criticizing China Bush let India’s Premier A. B. Vajpayee know that the times werefor seeking “to bully smaller nations through intimidation and changing: “A strong India can help provide the balance of power incoercion.” It was more than a straw in the wind. Harris also called the entire Asian region.” India’s economic rise was seen as servingon India to join the United States, Japan, and Australia to deal Washington’s long-term interests by ensuring that there wouldwith common security challenges in the Indo-Asia-Pacific region be countervailing powers in Asia—China, Japan, and India—able tovia the Quadrilateral Security Dialogue (or Quad). Although each prevent the domination of the region by any one power.values its economic ties with China, Washington, Tokyo, Canber- The Bush administration lifted decades-old sanctions againstra, and New Delhi, all share a common interest in ensuring that India imposed over its nuclear weapons program and concludedthe Indo-Pacific region is not dominated by China and the overall defense (2005) and nuclear (2008) cooperation agreements. Hisbalance of power remains favorable to the liberal democracies. successor, President Barack Obama described the U.S.–India rela-Many believe that Beijing would have been far less aggressive in tionship as the “indispensable partnership of the 21st century,”its “island building” and the other challenges to the status quo while his Secretary of Defense called “India the linchpin of the USin the Pacific norms if the Quad had already been in place. But rebalance strategy.” President Obama’s talks with Prime MinisterHarris called for the new initiative in the spirit of better late than Narendra Modi during his 2015 India visit revealed that Americannever. With media reporting the first-ever trilateral naval exercise and Indian views of China’s challenge to the global order are nowplanned by the U.S., Indian, and Japanese navies in the South Chi- “strikingly similar.”na Sea, the Admiral hoped that in the not too distant future, Amer-ican and Indian navy vessels steaming together will become “a Powers Shifts: Changing Triangular Dynamicscommon and welcome sight” throughout Indo-Asia-Pacific waters.Not surprisingly, China reacted fast and furiously to the prospect Power shifts have brought into sharp focus the significance of theof a more robust Indo-U.S. entente, warning both to stand back. U.S.–China–India triangular relationship in the early twenty-first century. As China reaches out for trade, investment, resources,The Origins of the Triangle markets, and bases, Beijing is also using its burgeoning mili- tary-industrial complex to court, arm, and aid its friends and alliesIt was in 1971 that President Richard Nixon’s courting of Mao’s to protect its overseas interests, assets, and nationals. The fact thatChina amid the looming India–Pakistan war of December 1971 countries with resources, markets, and strategically located navalpushed the “non-aligned” India firmly into the Soviet camp. In bases usually tend to be the largest recipients of Chinese largessethe 1990s, President Bill Clinton’s attempts to establish a U.S.– is indicative of Beijing’s search for potential allies. Beijing’s long-China condominium to “cap, freeze and roll back” India’s nuclear term strategy is to re-establish its dominance in Asia and regainprogram made New Delhi go nuclear and ballistic. Historically, the territories it claims as its own. Post-2008 global financial crisis,state of the Sino-U.S. relationship has always heavily influenced China has turned up the volume, transitioning from “hide andIndia’s foreign policy orientation. bide” to “seize and lead.” Rhetoric aside, Beijing’s “New Type ofThe central appeal of the change proposed in the Quad initiative is Great Power Relations” concept seeks U.S. recognition of China’sthat over the years of sometimes chilly relations with the United primacy in Asia in a geopolitical deal that limits Washington’s re-States, India is the only Asian power that has been committed to gional role and presence, relegates traditional U.S. allies (especial-balancing China since 1962, after the People’s Liberation Army ly Japan) to the sidelines, and settles disputes on China’s terms.(PLA) marched into Tibet and converted the traditional Indo-Tibet- Short of a major economic meltdown, China’s ability to projectan frontier into the disputed Sino-Indian boundary. Today, in one power is estimated to grow rapidly between now and 2025. China plans to build a blue-water navy that will include four aircraft carriers, the world’s largest submarine fleet, and missile capa- bility that would deny the U.S. navy the ability to operate inside the “first island chain” (from southern Japan through Taiwan and the Philippines to the South China Sea) and effectively counter regional competitors, Japan and India. Indeed, despite regular “feel-good” high-level summits and numerous “rules of the road” agreements, air and naval encounters between the U.S. and Chinese surveillance and reconnaissance aircraft and vessels will continue because these are messages from Beijing that the days of the Pacific Ocean as an “American lake” are now over. And now, this message is meant for Tokyo, Seoul, Hanoi, Manila, Jakarta, Canberra, and New Delhi, too. Beijing sees the U.S. military allianc- es and forward presence as the biggest hurdle in inducing Asians to accommodate and acquiesce to Chinese power. Chinese stra- tegic thinkers argue that some resistance to China’s rise is to be expected, but they believe resistance will give way to accommo- dation followed by reconciliation on China’s terms—sooner rather than later. This increases the pressure on convincing neighbouring countries that the overall balance of power has shifted in Beijing’s favor and their long-term interests lie in cutting bilateral deals Spotlight on Indian Electronics 2018-19 | 72

US-China Trade WarSour Ties: Washington and Beijing bilateral relations are at an all time low provider in the Indian Ocean and beyond.” Simply by being itself—favor and their long-term interests lie in cutting bilateral deals democratic, secular, powerful, prosperous, and successful—Indiawith China instead of yearning for Uncle Sam. frustrates China’s attempts to establish a Sino-centric regionalWhile Chinese leaders and diplomats still chant the mantra of order. While Washington cultivates India as a rising Asian power,“peaceful rise,” their body language makes it clear that they Beijing has deep mistrust of India’s strategic ambitions, seeing itsexpect everyone to get out of their way. China is as determined southern rival as a potential peer competitor that must be con-to change the U.S.-led liberal international order as the United tained. As the Sino-American security competition increases, IndiaStates seeks to preserve it. President Xi Jinping’s “One Belt One slides into the geopolitical sweet spot of a “swing state” earlierRoad” strategy seeks to secure China’s continental and maritime occupied by China during the old Cold War when it joined theinterests by simultaneously dominating the Eurasian Heartland United States to balance against the USSR.and exploiting natural resources for future economic growth and Significantly, Narendra Modi is the first Indian Prime Ministernaval development. The South China Sea, through which more who has not uttered the “N” word—“non-alignment”—even oncethan $5.3 trillion of maritime trade passes each year, is now the since coming to power in 2014. A “Modified India” has movedarena of a geopolitical poker game that will determine whether away from this Nehruvian notion to skilfully play the balance ofthe regional future is a Pax Sinica or Pax Americana. The long- power game as a “leading power.” Because of unresolved territo-term growth of Chinese supremacy in Asia is also contingent on rial disputes, China’s role as the largest arms supplier to India’shaving weaker and pliant states on China’s periphery. These goals neighbours, and patrols by Chinese nuclear submarines in the Bayinvariably pit China not only against the United States and Japan, of Bengal, which India considers its strategic backyard, “non-align-but also against India. ment” is no longer an option. In their high-level joint statements,But just as China will not play second fiddle to the United States, both the United States and India have repeatedly declared theirIndia will not play second fiddle to China. Because India was never support for freedom of navigation and over flight, signalling thatpart of the Sinic world order, but a civilization-empire in and of the Modi government is not shy about explicitly aligning U.S. anditself, it remains genetically ill-disposed to compliantly sliding Indian strategic aims in the Indo-Pacific to counter China’s expan-into China’s orbit. In its view, China has risen, India is still rising. sionist moves.At present, China’s economy and defense budget are four to five India now seeks American economic and technological assistancetimes larger than India’s. By 2025, India is projected to displace to give momentum to its rise as a major power and its new roleChina as the world’s most populous country with a growing econ- in maintaining maritime pre-eminence over the Indian Oceanomy. Both want the same things at the same time on the same region. Most of the $14 billion worth weapons and technologycontinent and its adjoining maritime domain. They are also two (C-130Js, C-17s, light howitzer artillery, UAVs (unmanned aerialfierce competitors that according to former Chinese ambassador vehicles), P-8 maritime surveillance aircraft, jet engine, and air-Zhang Yan, have now entered a period of “Cold Peace.” Just as the craft carrier technologies) that India has purchased from the Unit-Chinese view the United States as a hegemonic power and accuse ed States over the last decade directly augments its capabilitiesWashington of pursuing a policy of containment, Indians see Chi- vis-à-vis China on the Himalayan border and in the Indian Ocean.na as an expansionist and hegemonic power and accuse Beijing of The Defense Trade and Technology Initiative (DTTI) concluded inusing every opportunity to contain India while publicly professing 2012 aims to transition the defense transactions from a buyer–support for friendly ties. Despite growing economic ties, Beijing’s seller operation to a co-development and co-producer model.conflicts with India (over the unresolved border, Tibet, Pakistan, The conclusion of Logistics Support Agreement would enhancenaval, nuclear, and geopolitical rivalries) are deep-seated. Through operational capability and interoperability allowing aircraft anda combination of trade, aid, resource extraction, and infrastructure ships to land and make port calls, for example, in the Andamandevelopment, arms sales, and bases, Beijing is seeking to extend Islands in the future.its strategic perimeter in southern Asia and the Indian Oceanregion. China’s “Malacca paranoia” is matched by India’s “Hormuz Russia, Japan, and Southeast Asiadilemma.” If China’s navy is going south, India’s navy is goingeast. At a minimum, New Delhi wants to use its strategic ties with Although Moscow still remains India’s major partner in strategi-Washington to bolster India’s position in its dealings with China cally sensitive technology projects ranging from missiles, aircraftand in mitigating the dangers posed by its old adversary, Pakistan. carriers, and nuclear submarines to fighter aircraft, strongerApprehension about China has buried New Delhi’s Cold War-era U.S.–India strategic ties could fray old Russia–India bonds. Russiaopposition to U.S. forward presence, now viewed as “invaluable in and India no longer see eye to eye on China. Moscow has down-balancing China’s power and outreach.” For its part, Washington graded New Delhi from an “exclusive” to a “preferred” partner,strategy documents talk of India’s positive role as a “net security and now sells its most advanced weapons to China and Pakistan. As a result, Chinese–Russian strategic and energy ties today are far more substantive than Russian–Indian ties. Russia and China increasingly coordinate their stance on global issues and routinely conduct joint military exercises. Much to India’s chagrin, Moscow now plays second fiddle to China in Beijing-backed multilateral institutions that promote China’s interests and projects (e.g., the Silk Road Economic Belt). For New Delhi, the diplomatic challenge lies in balancing India’s interests between the Russia–India–China continental trilateral and the U.S.–Japan–India maritime trilateral. With Russia’s future uncertain, Prime Minister Modi wants Japan to replace Moscow as India’s preferred security partner in Asia in the twenty-first century. Both India and Japan have unsettled territorial disputes with China that erupt occasionally. Neither is in a position to deal with an increasingly aggressive China alone. Given their geographical location southwest and northeast of China and the impact of Chinese power and ambitions on them, India and Japan are well placed to ensure power equilibriumSpotlight on Indian Electronics 2018-19 | 73

US-China Trade Warand safeguard vital sea lanes. India is now the largest recipient Warm Hugs: India has to make sure that it manages to project itself as a friendof Japan’s overseas development assistance. Tokyo is actively of the US in the Indo-Pacific regionparticipating in “Make-in-India” manufacturing programs as Indiais seeking technology to boost its defense-industrial base. Japan’s that Washington is a fickle and not-so-reliable partner and thatpromise of $35 billion in investment in railroads and industrial U.S. priorities and policies vis-à-vis China might change in thecorridors, as well as a possible deal for amphibious aircraft add future to the detriment of India’s national interests. Indian strate-ballast to a partnership based on democratic values and market gists often point out that the United States and China were allieseconomy. Both are coordinating to build East–West connectivity before and during the Second World War and in the second phaselinking South Asia with Southeast Asia to counter China-financed of the Cold War from 1971 to 1989. Beijing has played on this fear.North–South railroad projects. Conceivably, India and Japan could Claiming that “China is familiar with the US mentality,” Liu Dicut a deal in not too distant future on granting privileged access recently expressed confidence that Washington would eventuallyto each other’s ports (e.g., Andamans and Okinawa) for forward “make concessions to China on the South China Sea issue, puttingdeployment of their respective military assets in the Pacific and Japan [and others] out of business.”Indian oceans to safeguard freedom of the Global Commons. The worst-case scenario from India’s perspective is the emergenceIn addition, “Modified India” has reached out to neighbours but of U.S.–China condominium in which China remains hostile to In-also to far-away countries in the shadow of Beijing’s increasingly dia and the United States is unavailable as a balancing power. Theexpansive territorial ambitions, most notably beleaguered Viet- Obama administration’s silence on the Sino-Indian border disputenam and the Philippines. Under its “Look East” (now revamped as Beijing ratcheted up tensions in 2008–2009 and his administra-as “Act East”) policy that dovetails with the “U.S. rebalance” and tion’s cancellation of a joint army drill in Arunachal state for fearJapan’s “Proactive Contribution to Peace,” India is placing itself at of antagonizing China still rankles India’s policymakers. Indiansthe centre of regional relationships with Mongolia, Vietnam, the worry that Washington may not come to India’s rescue in times ofPhilippines, Australia, Indonesia, and Thailand as part of a security crisis should a combination of disputes—related to Tibet, Pakistan,architecture that would balance a rising China. Ignoring Beijing’s disputed Himalayan borders, and energy exploration in the Southwarnings, India has publicly supported Vietnam and Philippines, China Sea—snowball into an armed confrontation. Ruling outin particular in their disputes with Beijing, and continues to coop- India’s participation in joint patrols with the United States (buterate with Hanoi on hydrocarbon exploration in the South China not joint naval exercises) in the South China Sea, former ForeignSea. Secretary Kanwal Sibal said that “China’s land threat to India and the strengthening of the China-Pakistan axis are much more seri-Discord over Accord ous for us than its maritime claims.” On the U.S. side, many believe that India’s claim to global powerBut although U.S.–India relations have come a long way, there are is at this point tenuous and over-hyped. The material basis ofstill residual differences and doubts. New Delhi has long regarded Indian power is neither strong nor secure due to successive gov-U.S.–Pakistani military ties as sustaining Beijing’s strategy to keep ernments’ dismal failure to undertake drastic economic reformsIndia off balance. Disputes over trade barriers and intellectual in land, labor, taxation, and capital. Unlike Deng Xiaoping, noproperty, H1Bvisas, and market access hold back business ties. Indian leader has travelled the length and breadth of the country(The United States does about $100 billion in trade with India a to sell the gospel of modernization, industrialization, and urban-year, a fraction of the $560 billion it does with China.) Mitigating ization. Unless India can sustain a high economic growth of 7 tothe effects of disagreement on such issues to promote bilateral 9 percent for a decade or two, it cannot match China’s economiccooperation has not been easy. Moreover, Washington is used to clout nor fulfil the role of a regional security provider. Seeing Indiarelationships where it has the dominant voice. But India’s historic as both unable and unwilling to share the burden of managingquest for strategic autonomy, its self-identity as a great civiliza- the global commons and acknowledging that the U.S. share oftion, and great power ambitions of its own mean that it will not global economic output is declining, some American policymak-be the kind of junior partner the United States cultivated during ers want Washington to cut its losses and cut a deal with Beijingthe Cold War. Unlike Britain, Germany, and Japan in the 1950s, for shared hegemony. They believe that an alignment with IndiaIndia is a rising, not receding, great power. would present far more costs and risks to the United States thanNew Delhi would prefer to avoid any formal alignment with benefits. And that a strategic alignment would imply an AmericanWashington partly because of concern that such an alignment will commitment to Indian security against China and Pakistan thatprompt the Chinese to tighten their embrace of India’s smaller Washington would not be able to fulfil. Just as India’s policy to-neighbours, which, in turn, will exacerbate India’s security dilem- ward China cannot be reduced to a single issue or the pursuit of ama. “In economy, politics and security,” an article in Global Times single objective, U.S. policies toward both China and India requirerecently noted, “China is far more capable of making troublefor India than the reverse.” Reacting to the proposal to form aninformal strategic quadrangle with Japan, Australia, India, and theUnited States, Shen Dingli, an influential Chinese analyst, told theNew York Times a few weeks ago that India would not join such anetwork for fear of Chinese retaliation: “China actually has manyways to hurt India. China could send an aircraft carrier to theGwadar port in Pakistan. China had turned down the Pakistan of-fer to have military stationed in the country. If India forces Chinato do that, of course we can put a navy at your doorstep.”Convinced that the U.S.–India security relationship is largelydirected against China, Beijing is simultaneously wooing andcoercing India to prevent Washington and New Delhi from comingtoo close for China’s comfort. During President Xi Jinping’s Indiavisit in 2015, China promised $20 billion worth of investmentsand more under its Silk Road fund over five years.And there also remains in New Delhi an undercurrent of suspicion Spotlight on Indian Electronics 2018-19 | 74

US-China Trade WarNoisy Neighbour: China will be too big an opponent if India drifts away from it. ic relations with China.PM Modi has to manage New Delhi’s ties with Beijing However, if India continues to “muddle through” with half-heart- ed economic reforms producing a low growth rate of 4 to 5flexible, nuanced, and differentiated strategies. percent with high unemployment, insurgencies, and fractured politics, the power gap with China will widen, and India willAlternative Futures—2030 enter a period of greater strategic vulnerability. In the worst case scenario, a sequence of catastrophes (e.g., a two-front war or aChina’s and India’s futures depend largely on economic growth, nuclear conflict, another partition caused by the growing Muslimpolitical unity, and the future evolution of Taiwan and Pakistan. A population, or the success of jihadi and Maoist terrorism in un-mix of shared economic interests, on one hand, and competitive ravelling the Indian Union) weakens India severely, making Indianand conflicting strategic interests, on the other hand, suggests a leaders much more deferential in their dealings with China.variety of alternative geopolitical futures with significant implica- Or, under another extreme but not impossible scenario, if thetions of each for the United States in 2030. U.S. economy goes into free fall, culminating in the end of theA possible but unlikely future would be one in which the Unit- U.S. forward military presence in the Pacific, and if Japan slidesed States pulled back strategically from Asia as China rose to into China’s orbit following the return of Taiwan to China’s fold,global leadership. More plausible is that buoyed by technolog- in that event, New Delhi’s faith in the U.S.–Japanese alliance as aical breakthrough in 3D manufacturing and the vast shale gas heat shield for India’s rise would evaporate. Without great powerreserves, future economic growth could come from the United backing and left to fend for itself on multiple fronts, New DelhiStates as Chinese economy undergoes a serious downturn. Far would want to steer clear of any aggravation or even competitionfrom reducing its footprint or walking away from the Asia-Pacific with Beijing. An isolated India—having fallen so far behind Chinaregion, Washington would continue to practice “power-balancing” in relative power terms—would decide to bandwagon with, ratherstrategy as it has vital economic and strategic interests at stake in than balance against, the superpower on its doorstep. Beijingthe region. Faced with an aggressive China, Asia’s major maritime would not then need to worry about the “India challenge” anyand democratic powers—Japan, Australia, and India—will work longer. In short, “the Modi Restoration” would be the best-casein a more synchronized manner in a quadrilateral grouping with scenario for Washington but a “weak and divided India” would bethe United States. They will be backed by middle powers (South the best case scenario for Beijing.Korea, Vietnam, the Philippines, Indonesia, and Malaysia) whichare increasingly voicing their concerns about Chinese maritime Conclusionbehaviour. They will closely cooperate with each other to pro-mote and defend a rules-based order that does not advantage big The U.S.–China–India triangular relationship is a strategic Rubik’sand powerful nations at the expense of small and weak states. Cube. All three need each other. For China, its economic relation-Over time, various bilateral, trilateral (e.g., Japan–Vietnam–the ship with the United States is vitally important as its biggest ex-Philippines, the United States–Japan–India, Australia–Indonesia– port market. For India, its ties with the United States facilitate itsIndia, India–Japan–Vietnam), and informal multilateral efforts rise as a major power and augment its position in Asia. For its part,to constrain China could coalesce into a maritime coalition or Washington does not want a single power to dominate the Asianthe “Indo-Pacific Maritime Partnership” (i.e., an “Asian NATO” by continent and its adjoining waters and supports the rise of severalanother name). powers, India chief among them, with the United States actingSince India remains the weakest link in the emerging coalition, its as an “engaged offshore power balancer.” For China, the Uniteddomestic policies and external orientation will be a key determi- States is the principal strategic adversary; for India, it is China.nant in how effective this new diplomatic relationship becomes. India’s deterrence capabilities are China-centric, while those ofIn the “Modi Restoration” scenario, India is able to sustain a high China’s are U.S.-centric. The U.S. interests require it to cooperategrowth rate of 8% for a decade or more that ushers in industrial- with China on some issues and with India on others, and some-ization and urbanization. Japan and the West develop a growing times with both. How China and India manage their differencesstake in continued Indian economic reforms and success as they on their border dispute, trade imbalance, Tibet, Pakistan, regionalcontribute to global growth and maintain a favourable balance of integration, and the UN Security Council reforms will have signifi-power in Asia. As the world’s most populous country with a pow- cant implications on the United States’ place in Asia.erful military, a confident India plays the role of a “leading power” Although at present, the weakest side in the triangle, New Delhialongside the United States, China, and Japan. Militarily, India tilts will determine its future. Abandoning “non-alignment,” Modi’stoward the United States and Japan but maintains strong econom- India is weaving a web of strategic relationships to signal Beijing that India can become part of an anti-Chinese coalition should China threaten its security. In the meantime, a pro-United States, pro-Japan tilt in India’s national security strategy—in reaction to China’s power and ambitions— will be a defining characteristic of Asian geopolitics. If the Chinese dragon is seen as running rampant in lands and seas around India, a weak Indian tilt toward the United States would turn into a firm alignment against Chi- na. Should Beijing adopt a moderate foreign policy course and commit itself to multilateral efforts to resolve disputes and foster regional stability, American–Chinese and Chinese–Indian relations will improve. All Asian countries want to benefit from economic ties with China, but none want to live under the shadow of the Dragon.Spotlight on Indian Electronics 2018-19 | 75

NDEXState Policies79 Uttar Pradesh Electronics Manufacturing Policy83 Andhra Pradesh Electronics Policy87 Haryana - Electronics System Design and Manufacturing91 Electronics in Telangana96 Gujarat Electronics Manufacturing Policy100 Chhattisgarh Electronics Policy Spotlight on Indian Electronics 2018-19 | 78

State Policy | Uttar PradeshMUEltaetanctrurfPoarncaitcduserisnhg Policy Uttar Pradesh, the land with ancient history is set a vision to transform India into a rich in resources and global hub for ESDM sector to cater cultural heritage. It is both domestic and global demand. one of the largest states in India with Aligning with the National vision, the GDP of more than US$ 200 billion state of Uttar Pradesh is emerging and has the largest consumer base fast in the ESDM sector with the new in the country with around 200 million entrants like Oppo, Lava, Intex, Vivo people. With rapid industrialization etc. along with several component and Government spending in Projects manufacturers setting up their units in like Metro Rail, Agra – Lucknow Uttar Pradesh. Expressway, IT City, IT Parks, upcoming Poorvanchal Expressway, To accelerate the ESDM ecosystem Electronic Manufacturing Clusters, development, the UP Electronics Industrial Zones, Optical Fiber manufacturing policy hereby Connectivity etc., the state has taken declares Noida, Greater Noida up a trajectory towards accelerated and Yamuna Expressway area as growth and developed society. “Electronic Manufacturing Zone” and all the incentives under the IT & Electronics sector has been policy shall be applicable to all units contributing immensely to the setting up their base in the declared state Industry with the presence of Zone. This Zone already have the companies like TCS, IBM, Wipro, ST seamless connectivity, state of the microelectronics etc. and is proud art infrastructure, Logistics hub, of the long term establishment of 24X7 water-power availability, Social Samsung, LG Electronics, HCL for Infrastructure, International Schools, more than 2 decades of successful hospitals, Nearest International Airport operation in the state. The state has and cut across through DMIC and abundant skilled manpower along EDFC corridors. with the presence of prominent institutions like IITs, IIM, IIITs, and This will lead the exponential growth reputed Engineering Colleges in the establishment of ESDM units catering to the demand of the in the zone which will not only boost Industry. up the economy but also create large scale employment in the state. To address the gap of supply & demand, Government of India has Mission • To promote the growth of Spotlight on Indian Electronics 2018-19 | 80

State Policy | Uttar PradeshElectronics Manufacturing Industry in the state land, power (uninterrupted 24x7 supply of the chairmanship of Chief Secretary shallby providing conducive environment and quality power), water, roads etc. monitor the implementation and successfulposition Uttar Pradesh as the most preferred execution of Policy within the state. ThisInvestment destination. e-Waste Handling committee shall consists of members from Infrastructure and Industrial Development, IT &• To provide Single window assistance for Creating a mechanism with Industry to facilitate Electronics, Finance, Planning, Small Industries,successful establishment of ESDM units in the the implementation of e-waste (management Commercial Tax, Energy, Irrigation, Housingstate of Uttar Pradesh. and Handling) Rules 2011, including restrictions Department, Labour and as per requirement on usage of hazardous substances as per may include Additional Chief Secretary, Principal• To build a world class ecosystem of the global practices. Also, promoting e-waste Secretary, Secretary, Chairman and ManagingR&D, Product design, Assembly & Testing, recycling industry in the state for state produced Director of Noida, Greater Noida and YamunaEngineering & Production for electronics in the e-waste. Expressway Industrial Development Authority,state. UP State Industrial Development Corporation Electronic Mission Directorate etc. as and when required.• To promote skill development for theworkforce in the electronics sector which can Setting up of dedicated Mission directorate The charter of the Empoweredboost employment opportunities within the (MD) headed by the permanent Mission committee shall be:state. Director. The Mission Directorate Team comprises of Mission Director, Deputy Director, • To monitor and ensure timely release ofObjective Department of Finance and Administration, relevant orders/notifications and amendments Consultant and other officials/staffs as and as and when required• Establishment of Electronic Manufacturing when required.Clusters/ESDM parks in the state • Approval of new EMZ under the policy as • Mission Directorate shall communicate with per the industry demand and the prospect of• To attract investment in Electronics the investors and analyze their Investment Industry scenario. The committee shall decideManufacturing sector in the state proposals and present it to the Policy upon the maximum limit of financial incentives Implementation Unit (PIU) for necessary for new EMZ.• To focus on the establishment of FAB unit in approval.the state • Approval of the project worth more than INR • Post obtaining PIU approval, Mission 200 crores considered on case to case basis• Establishment of ESDM parks for Domestic / Directorate shall dispense the Financial and subject to approval from state cabinetForeign investors in the state Incentives as per rules. on the recommendation of Empowered Committee.• To promote and develop employment • To issue “Letter of Comfort” to investors, postopportunities within the state obtaining approval of competent authority on • Inter-Departmental coordination in respect Investment Proposal. of matters related to this policy and providing• Augmentation of Gross State Domestic assistance to the investor for their issuesproduct (GSDP) of Uttar Pradesh • Mission Directorate shall participate in the Events /Workshop/Conference from time to time • To resolve implementation issues at all levelsPolicy Target & Implementation and organize the same as and when required inStrategy order to attract investment in the state. IncentivesPolicy Target • The Chief Executive Officer of concerned The following incentives target the Authority /concerned District Magistrates establishment of Electronic ManufacturingWith this Electronics Manufacturing Policy, shall assist Mission Directorate in providing Clusters / ESDM Parks and individual ESDMthe state government targets to make Uttar customized package, which includes Electricity, units setting up in the Electronics ManufacturingPradesh an Electronics Manufacturing Hub and Water, Land, Outside Infrastructure etc. for the Zone (EMZ) within the state for period endingtargets to establish a conducive ecosystem for investors. on 31st March, 2022 or approved FinancialElectronics System Design and Manufacturing Incentives up to the limit of INR(ESDM) sector, where Anchor Units and Policy Implementation Unit (PIU)Components Manufacturers shall work together. 20,000 Cr from competent authority (excluding PIU as Single Window Clearance unit shall work FAB unit), whichever is earlier.The Policy targets the declaration of entire closely with the investors under the guidancenotified area of Noida Industrial Development of the Principle Secretary, Department of IT & The Empowered Committee constituted underAuthority (NOIDA), Greater Noida Industrial Electronics, GoUP, to efficiently and smoothly the policy shall decide upon the extensionDevelopment Authority (GNIDA) and Yamuna assist the investors in processing incentives of policy period duration and increase in theExpressway Industrial Development Authority claims laid down under the policy. amount of Financial Incentives mentioned(YEIDA) as “Electronics Manufacturing Zone” above and shall also decide upon the(EMZ), whereby, at most ESDM units shall Apart from this, PIU shall also examine the disbursement of Financial Incentives in otherestablish their manufacturing units. investment proposal of more than INR 200 Cr. EMZ. and present it to the Empowered Committee forThe policy targets to attract investment of INR necessary approval. Fiscal incentives applicable to20,000 Crores in ESDM sector and generate ESDM unitsemployment for 3,00,000 manpower by the year Approval / permission on Investment proposal2022. of less than INR 200 Cr. shall be applicable as Capital subsidy per guidelines under the Policy.Infrastructure Development • A Capital Subsidy of 15% on fixed capital Post obtaining approval on Investment proposal other than land subject to maximum of INR 5Thrust will be given to establish the Electronics from competent authority, PIU shall approve crore shall be providedManufacturing Clusters/ESDM Parks to set up the Claim/Reimbursement of investor from timebusiness units within the state. These EMCs/ to time as per rules on the recommendation of • The upper limit of Capital subsidy may beESDM parks would help in: Mission Directorate. relaxed up to max. of INR 150 Cr. on case to case basis for investment more than INR 200• Creating more innovative and competitive PIU shall also be responsible for clearing crore.business zones based on knowledge, people- roadblocks in a time bound manner, failingled innovation, and global networking. to which, the issue shall get escalated to the • This Subsidy shall be given only to the ESDM empowered committee. companies and admissible on the capital• Offering high capacity of monitoring and evaluated by Financial Institutions / Banks ormanagement of environmental issues. Empowered committee by the committee constituted through the State• Improving city transportation and more secure A state level Empowered committee underurban spaces.• Providing basic infrastructural facilities like Spotlight on Indian Electronics 2018-19 | 81

State Policy | Uttar PradeshGovernment or by the capital evaluated by the opportunities for minimum 1500 people shall This incentives shall be applicable for ESDMfinancial consultants as required. be given special incentives, apart from the Units with investment more than INR 300 Cr. on existing provisions of the policy, which shall case to case basis and shall not be more thanInterest subsidy be in the form of EPF, ESI Reimbursement, 100% of Fixed Capital from all the resources Electricity Duty Reimbursement, Training Cost unless stated otherwise in the policy.An interest subsidy of 5% per annum for a Reimbursement, Rebate on Land, Power etc.period of 7 years on the rate of interest paid and any other head to be determined by the • Alignment with UP Skill development Missionon the loans obtained from Scheduled Banks/ Empowered Committee and subject to approval with required skill sets for Electronics Industry inFinancial Institutions shall be reimbursed from the state cabinet. order to pass on the benefits of the scheme tosubject to a maximum of Rs. 1 crore per annum the eligible.per unit. Option 2 • Alignment with skill development in ESDMStamp Duty • ESDM unit with investment of more than sector with the budget allocated by DeitY for this INR 200 Crores and create employment scheme.• 100% exemption of stamp duty on purchase/ opportunities for minimum 1000 people shall belease of land for the establishment of individual given 80% Reimbursement on SGST subject to • Permission will be provided to have 24X7ESDM units under EMZ. a maximum of 200% of fixed capital investment operations and employment of women in all other than land (such as building, plant, three shifts.• For purchase/lease of land for the machinery, testing equipment etc.) for a periodestablishment of EMCs / ESDM parks, 100% of 10 years, whichever is earlier, which shall be Private ESDM Parkexemption of stamp duty on first transaction decided by the Empowered Committee and the(Authority to Developer/SPV) and 50% State Cabinet. Domestic / Foreign Investor of ESDM sectorexemption of stamp duty on second transaction willing to establish their unit in ESDM parks and(Developer/SPV to ESDM Units). • Apart from the SGST Reimbursement as are mentioned above, the ESDM Unit shall availIncentives for filing patents only stamp duty exemption, land provision, developed by the developers. These developers EMC Infrastructure development and non-fiscal shall be given below incentives:To encourage research and development, incentives under this option.Reimbursement of up to 100% of actual • Allowed on Minimum 50 acre landfiling costs on awarded patents subject to a Remarks: ESDM units establishing insidemaximum of INR 500,000 for domestic and INR the Electronics Manufacturing Zone (EMZ), • 25% Land Rebate on the prevailing sector10,00,000 for international patents. shall be required to opt for one option only. rates shall be provided on purchase of land Partial selection of provisions from both the from state agenciesState GST Reimbursement options shall not be permissible; The Financial incentives to be allowed to any of the unit from • Developers shall get outside infrastructural100% State GST reimbursement subject to a all the resources unless stated otherwise in the development from Authoritiesmaximum of 100% of fixed capital investment policy shall not be more than 100% of the fixedother than land (such as building, plant, capital investments to the units. • Single Window Assistance from concernedmachinery, testing equipment etc.) for a period authority and nomination of Nodal Officer forof 10 years. Fab Units: Fab units shall be provided every parks a customized package on case to caseOther incentives applicable to basis which includes Land, Electricity, Water, • Interest subsidy in the form of reimbursementEMC Infrastructure, Capital sharing, Fiscal and Non- of interest of up to 60% of annual interestProvision of Land Fiscal Incentives etc.), subject to approval from for 7 years on the loan taken for building Empowered Committee and the State Cabinet. infrastructure (e.g. Road, Electricity, Water,• 25% Land Rebate on prevailing sector rates Dormitories etc.) in the industrial parks subjectshall be provided either to EMC SPV / ESDM EMC Infrastructure Facilities to Rs. 10 crore per year with an overall ceiling ofParks and individual ESDM units, establishing Rs. 50 crore per park.inside EMZ on purchase of land from state State Government shall provide a subsidyAgencies. This rebate would be reimbursed equivalent to 50% of the grant provided by • 100% exemption of Stamp Duty for purchase/from state budget. the Central Government under National Policy lease of land on first transaction (i.e. Authority to on Electronics, 2012 in terms of the cost Developer/SPV) and 50% on second transaction• Floor Area Ratio (FAR): Units will be allowed incurred in developing infrastructural facilities (i.e. Developer/SPV to ESDM Units)for 3.0 + 1.0 (Purchasable) floor area ratio (Roads, Power, Water, Testing facilities, Social Infrastructure etc.) for EMC development. Uninterrupted Power Supply• Dormitories for Workers and welfare facilities:Up to 30% of total FAR in minimum 50 acre of Note: The above incentives shall also be ‘Protective Load’ for reliable power to EMCsland size as ‘’Industrial land use’’ and shall be applicable to the e-waste recycle companies / ESDM parks / Fab Units – A memorandumallowed for welfare facilities like dormitories for which are going to be established in the EMCs. of understanding (MoU) shall be signed withworkers, canteen, dispensary, etc. UP Power Corporation Limited and EMC SPV Other Benefits / ESDM Parks / Fab Units for UninterruptedCase to Case Basis Power supply which will ensure commitment of Reimbursement of up to 5% of Fixed Capital reliable and quality power.Only For ESDM unit with investment Investment (other than land) for ESDM unitsof more than INR 200 Crores: on Training Cost incurred for High Skilled Marketing and Branding Strategy Technology Training e.g. Embedded SystemOption 1 Design, VLSI Design, PCB Design and Electronics Mission Directorate Shall be Manufacturing, Chip Manufacturing, TFT responsible for formulating the marketing and• ESDM unit with investment of more than Manufacturing etc. subject to max. of INR 25INR 200 Crores and up to the limit of INR 300 Cr. per unit, 50% of cost incurred on Training Branding strategy for this policy. The followingCrores and create employment opportunities subject to max. of INR 2.5 Lac per employee tasks will be handled by Electronics Missionfor minimum 1000 people shall be given special for International Training and INR 1 Lac per Directorate:incentives as per the existing provisions of employee for Domestic Training on completionthe policy, which shall be determined by the of six months of employment for their UP • Creating a brand image for the state IT &empowered committee. The maximum limit Domicile workers, establishing inside EMZ. Electronics Department and its policies andof the Financial incentives i.e. Capital subsidy various initiativesand interest subsidy may be relaxed on therecommendation of the Empowered Committee • Organizing Conferences, Summits, Roadand subject to approval from the state cabinet. Shows and Events in association of CII, ELCINA, MAIT, ICA, FICCI etc. to highlight the• ESDM units with investment of more than major features of the policy.INR 300 Crores and create employment Spotlight on Indian Electronics 2018-19 | 82

State Policy | Andhra Pradesh ElAencdtrhornaicPsraPdoelischyT he Vision envisaged for the 30,000 cr (USD 5 Billion) and facilitate the units to get the 25% Andhra Pradesh Electronics Cap Ex subsidy under the M-SIPS scheme of GoI. Policy 2014-2020: • Preferential Market Access: The policy of GoI on preferential ‘To develop Electronics Industry as an market access for domestically manufactured electronics important Growth Engine for Andhra products shall be implemented in all departments procuring electronics in large quantities. Additional preference shall be Pradesh through effective use of the talent given to AP-based domestic manufacturers. pool, skill enhancement, promotion of • Create a Joint Government-Industry committee to market India and attract investments in the country.innovation and future technologies and creation of excellent • Create a fund under the management of the Committeeinfrastructure.’ The Policy aims to attract investments to comprising representatives of industry bodies and government, with an equal stake to promote design, manufacturing,the tune of USD 5 Billion in ESDM sector and create an assembling and innovation and packaging business.employment of 0.4 Million by 2020. Building InfrastructureGovernment of AP intends to achieve its vision, objectives and • Mega Electronics Hub: Government of Andhra Pradesh envisages developing Information Technology and Investmentgoals set forth above, through a combination of the following Region (ITIR) in Visakhapatnam. In the ITIR, the Government would reserve two clusters / areas to be solely developed asstrategies. Electronics Hubs. Visakhapatnam is proposed to be developed as Mega Electronics Hub for the state.Adopting and promoting of NPE 2012 of GoI: • Electronic Hardware Park(s): The state Government willGiven the comprehensive and holistic nature of the National facilitate the setting up of the Electronic Hardware Park in Kakinada as announced by the GoI. The park would have thePolicy on Electronics 2012, the Government of AP intends to ‘State-of-the-art’ infrastructure with all basic amenities such as internal roads, water, power and other common facilities for thefully leverage the same and build upon its strengths, as stated Electronics Units.below: • Common Facilities Centre: Common Facilities Centres would• Electronics Manufacturing Clusters (EMCs): The EMCScheme intends to create infrastructure highly suitedto electronics units by providing a subsidy of 50%. TheGovernment of Andhra Pradesh proposes to promote thedevelopment of 20 EMCs across the State, by facilitating thepreparation of project proposals by the entrepreneurs andproviding single-window clearances.• Target investment of Rs 30,000 cr under M-SIPS: Governmentwould make all efforts to attract investments to the tune of Rs Spotlight on Indian Electronics 2018-19 | 84

State Policy | Andhra Pradeshbe created in all identified Electronics Hubs. prescribed precautions in respect of safety and capital equipment for technology up gradation security of employees. limited to Rs.25 lakhs (2.5 Million) as one time• Visakhapatnam-Chennai corridor: Fast availment by the eligible company.movement of inputs, components and finished • Electronics Hardware industry is declared asproducts is essential for cost-effectiveness in essential service under AP Essential Services • Rebate on Land Cost: 25% Rebatethe ESDM sector, which otherwise operates on Maintenance Act. on land cost limited to Rs.10 lakhs (1 Million)thin margins. Steps would be taken to enhance per acre in Industrial Estates, Industrial Parks,the logistics on the Visakhapatnam-Chennai • CCITI: An empowered ‘Consultative SEZ’s, EMCsCorridor. Committee on Information Technology Industry (CCITI)’ would be formed with the B. Additional incentives available to• PPP for creation of Electronics Hardware representatives of Electronics industry and the Mega Projects:Infrastructure: The facilities, in the form other stakeholders. The CCITI would administerof electronics hubs, hardware parks and the incentives in a speedy, time-bound and • Mega Projects: Mega Projects are theelectronics zones, shall be developed adopting transparent manner. projects or the investment intents with minimuma transparent PPP policy. Investment of Rs. 250 crores (2.5 Billion) or the A2 Fiscal Incentives ones that can create an employment of more• Renewable Energy: The State than 2,000 persons in a span of five years. AGovernment will encourage units using • Registration & Stamp Duty: Electronics special dispensation would be provided to therenewable energy. Units using renewable industry shall be eligible for 100% Mega Projects.source of energy with a minimum of 40% of their reimbursement of the Stamp Duty, Transfer Dutypower requirements coming from renewable and Registration Fee paid on sale/ lease deeds • Allotment of Government land forsources for their operations and manufacturing on the first transaction and 50% thereof on the construction of own Manufacturingwill be eligible for additional incentives such as second transaction. Facility: Allotment of Government land forElectricity Duty exemption for 5 years. Sales construction of own manufacturing facilitytax exemption for two additional years shall be • Power Subsidy: by the Electronic Hardware Industry is madeavailable against the Carbon Credits earned on available subject to availability, fulfilment ofa year-on-year basis. I. 50% to Micro, 40% to small and 25% to certain eligibility criteria by the applicant and on medium and 10% to large-scale industry payment of land cost and development cost, asOther Critical Infrastructure: limited to Rs. 50 lakhs Power Subsidy on power determined from time to time by the allotment bills for a period of 5 years from the date of agencies i.e., APIIC/Urban Development• Air Connectivity: The process of commencement of commercial operations. Agencies.expansion and modernization of the airports atVisakhapatnam and Tirupati are a foot. II. Exemption of Electricity Duty: New Promotion of Electronics AP Electronic Hardware units, after coming into• Assured Power: Within a span of 5 years, commercial operations will be entitled for 100% The new State of Andhra Pradesh hasthe Government intends to make the State exemption on Electricity duty for a period of 5 competitive advantage in terms of relativelypower surplus. As an interim measure, the years. lower land cost when compared to those inelectronics industry would be exempt from the Hyderabad, Chennai and Bangalore. Keepingpurview of statutory power cuts. • Patent Filing Cost: The cost of filing this in view, certain Promotion Initiatives are patents will be reimbursed to the companies envisaged.• Social Infrastructure: A multi- having their headquarters in Andhra Pradesh,departmental mechanism would be established subject to a limit of Rs. 5 lakh (0.5 Million) per • Mega Electronics Event: An Annualto improve the social infrastructure in the domestic patent awarded and Rs. 10 lakh (1 Mega Electronics Event shall be organizedcities where ITIR or EMCs are proposed to be Million) per international patent awarded. in the State in partnership with the industry.developed. The Government would ensure that the event • Quality Certification: 50% subsidy on becomes a national event for showcasingTop-up incentives of GoI the expenses incurred for quality certification and promoting the electronics industry in the limited to Rs.4 Lakhs (0.4 Million) (Conformity country.In addition to the incentives by the GoI as per European (CE), China Compulsory CertificateNPE 2012, the Government of Andhra Pradesh (CCC), UL Certification, ISO, CMM Certification, • Road Shows: Road shows will beshall provide the following additional incentives. SA, RU etc.). conducted in the United States, Japan, Germany, Korea, Taiwan and China for theA. Incentives applicable to all • Cleaner/Greener Production promotion of the industry in the state. Jointcategories of Electronic Hardware Measures: 25% subsidy on cleaner/ green delegations of the Industry and the StateIndustry: production measures limited to Rs.10 Lakhs (1 Government shall participate in various national Million). and international Exhibitions/ Conferences/A1. Non Fiscal Incentives Trade Shows relating to electronics, to attract • VAT/ CST Reimbursement: 100% investments into the state.• Electronics Industry would be exempted from Tax reimbursement of VAT / CST, for the newinspections/certifications under the following units started after the date of issue of this • Establish Electronics Bazaars:Acts and the Rules framed there under and as Policy, for a period of 5 years from the date of Government of Andhra Pradesh proposes toadministered by the Labour Department, barring commencement of production for products set up “Electronics Bazaars” at Visakhapatnam,inspections arising out of specific complaints. manufactured in AP and sold in AP. Vijayawada and Tirupati. The ElectronicsThe Electronic Industry (units) are permitted to Bazaars would act as G2B/ B2B/B2G/B2Cfile self-certificates, in the prescribed formats • Skill Up gradation and Training: 50% Platforms for Electronic Products in the State.for the following statutes: The Factories Act reimbursement/ grant of cost involved in skill The Bazaars would also provide space for new1948, The Maternity Benefit Act 1961, The AP up gradation and training the local manpower product launches.Shops & Establishments Act 1988, The Contract limited to Rs. 2,000 per person.Labour (Regulations & Abolition) Act 1970, The • Enhance web-presence /Payment of Wages Act, 1936, The Minimum • Investment Subsidy: 20% Investment marketing: An extensive web marketingWages Act 1948, The Employment Exchanges Subsidy limited to Rs.20 lakhs (2 Million) for campaign will be run with the help of a(Compulsory Notification of Vacancies) Act MSME and additional 5% investment subsidy professional agency. The Campaign would1959. for Women/SC/ST Entrepreneurs. focus on marketing and branding Advantage AP.•General permission shall be available on • Interest Rebate: 3% Interest Rebatethe lines similar to IT/ITES industry for 3-shift limited to Rs.5 lakhs (0.5 Million) per year for 5 • Create widely known Points ofoperations with women working in the night, yearssubject to the Electronics Units taking the • Capital Subsidy: 10% subsidy on new Spotlight on Indian Electronics 2018-19 | 85

State Policy | Andhra PradeshContact: Government would create liaison Electronics & IT, 2 Academics given by APIIC.offices in select locations for facilitating industry and an expert in Marketing andinteractions. Promotion. Innovation and Capacity Building• Incentives to the Industry • Effective Single- • Establish COE on Fables Window System: A Semiconductors: The Government aimsI. Technology & Market Support: high-level, empowered ‘Single setting up a Centre of Excellence in Design ofGovernment will support Associations of Window Clearance Unit’ will be Fables Semiconductors in partnership with theElectronic Hardware manufacturers and created and operationalized industry and the premier academic institutionsexporters like IESA, ELCINA, ELIAP, for for granting approvals and in the State.conducting surveys and/or research on trends clearances for setting up Newin technology, market intelligence or on other Units and for expansion of • PhDs: The State shall target to reach a levelwork useful to the Electronic Hardware Industry. the existing units in the State. of producing 250 PhDs in Electronics by 2018 It would be supported by the under the scheme approved by GoI.II. Business Networking and state-of-the-art centralizedpromotional events: Government shall help desk on 24x7 basis duly • Skill Enhancement by MSMEs:promote and encourage participation in leveraging the e-Biz portal set Assistance shall be provided to MSMEs with avarious national and international events by the up by GoI. The objective of this minimum of 20 employees on its rolls by way ofindustry and by leading a Government-industry window would be to (a) reduce reimbursement of 50% of training fees, subjectbusiness delegation to the identified Exhibitions time to set up business and (b) to a maximum Rs. 10,000 per employee, onand Conferences. Government would also reduce cost of doing business. obtaining recognized certifications in emergingundertake various promotional events and road technologies. The assistance under thisshows at various locations from time to time. A • Time-bound approvals: category shall be limited to Rs. 1 lakh (0.1reimbursement/ grant of 50% exhibition subsidy The following procedural reform Million) per year per unit.will be awarded for participating in the national/ would be undertaken with aninternational exhibitions up to 9 sq. m per unit. aim to provide approvals to • Content Development: Government the industry/ investors within 4 would support the ‘content development’ forAdoption of ‘Mission Approach’ weeks. the online courses that would meet the current and future industry demand in association with• Empowered Mission for Electronics I. Integrated Application for all Industry/ Industry Associations/ Academia.& IT Promotion: An autonomous Society, permissionswith Headquarters at Visakhapatnam would • Credits for Online Courses: Thebe created as an ‘Empowered Mission for II. Escort Officer to be assigned Universities will be advised to give credits to theElectronics & IT Promotion’ to give fillip to the the responsibility for getting approvals students successfully completing notified onlinedevelopment of the sector and take faster and courses.agile decisions. The Mission would be headed III. Escalation at various levels and regularby a Technocrat and would have 3 Experts in monitoring • Faculty Up-gradation: A special scheme of faculty up-gradation shall be A provision shall be made in the relevant introduced. legislations or rules that in case the required approvals are not granted within 4 weeks of • The Government would support opening receipt of an application in full-shape, the of premier institutes for electronics and approval shall be deemed to have been hardware in partnership with the top electronics granted. companies and foreign universities. • Mission to identify and work on • Mandatory Apprenticeship: All Thrust Areas: Based on the Industry educational institutions offering under-graduate Demand, the Electronics and IT Mission would courses in software engineering, electronics identify key thrust areas/ segments in the and computer sciences shall implement a Electronics Industry. Special focus would be laid mandatory scheme of internship/apprenticeship for developing the eco-system for these thrust in the 4th Year of the course in association with areas. The indicative thrust areas are Fables the industry. semiconductors, Mobile, LED, Smart Meters, FPD TVs, Tablets, Base Stations, Smartcards, • Provision of Special Fund for Sensors, IOT. Electronic Labs in Schools: This would enable the school to conduct demonstrations • APIIC to be Industrial Area Local and training to the students who envisage Authority (IALA): All IT Industrial Areas/IT interest in electronics and thereby develop the layouts/Zones/Corridors, including Electronic basic electronic knowledge even before they Manufacturing Clusters (EMCs) and ITIR get to the Diploma or Graduation Courses. delineated processing areas of APIIC in the State shall be accorded the status of Industrial This Policy is valid till 2020 unless modified and Authority Local Area (IALA) immediately so that supersedes the “Andhra Pradesh Electronics the execution and maintenance of IT industrial Hardware Policy 2012-17. This Policy would be areas shall be effectively planned, executed reviewed and updated every year, if required, in and implemented by APIIC in the interest of consultation with the stakeholders. promotion of Electronics Sector. All Statutory clearance in the Industrial Local Area would be ITE&C Department shall issue appropriate Implementation/Operational Guidelines with simplified application Performa and procedure for claiming of the incentives. Spotlight on Indian Electronics 2018-19 | 86

HaryanaElectronicsManufacturingPolicy“Haryana, one of the leading automobile and engineer-ing hub of the country, is best poised to significantlycontribute to the national vision for ESDM.Given its proximity to NCR, abundanceof local labour, and availability of maximumnumber of notified Brownfield Clustersprovides an unmatched eco- systemfor industry. Government of Haryanarealizes the potential of ESDM sector,thus the State has decided to launch adedicated ESDM Policy for a fast pacedsector growth. The policy focuses toattract private sector investmentin the sector by offering lucra-tive incentives, ready talent pool,SMART infrastructure and above alla simplified regulatory regime.Spotlight on Indian Electronics 2018-19 | 88

State Policy | HaryanaHaryana Electronics System Design and Manufacturing – ESDMFiscal Incentives an investor friendly experience to the foreign investors,i. Capital Subsidy: State to provide 50% top up of Capex the State government shall be setting up Internationalsupport provided by DeitY to units setting up in notified Desks for focus countries to facilitate global investors.EMCs under M-SIPS of GoI. The support shall be provided iii. Policy Implementation Unit (PIU): Government shallto first 10 Anchor units limited to maximum INR 10 Cr. constitute a PIU headed by the Additional Chief Secretaryper unit. (Information Technology) along with sector experts andii. SGST Reimbursement: 100% reimbursement (net tax) industry professionals for targeted implementation ofsubject to maximum of 100% of Fixed Capital Investment the IT & ESDM policy. PIU will work closely with all the– FCI for a period of 5 years and C & D Block for 10 years. stakeholder departments to enable timely notificationiii. Stamp Duty: ESDM units shall be eligible for 100% of the interventions suggested in the policy. Further, PIUreimbursement of stamp duty paid on sale / lease deeds will conduct regular dialogue with industry to assess thepaid on the first transaction for setting up units in noti- evolving industry demand and assist the department tofied EHTPs or land earmarked by the State Government address the demands in timely manner.for ESDM industry. iv. Intellectual Property (IP) Value Cell: IP Facilitationiv. ESDM units shall be eligible for 100% reimbursement Centre under Haryana State Council for Science andof stamp duty paid on sale / lease deeds paid on the first Technology shall be strengthened with an objective totransaction for setting up units in B, C, D blocks. raise awareness of IPR among startups and assist themv. Electricity Duty Exemption: 100% exemption for a in protection and commercialization of innovative andperiod of 7 years from commercial operations. emerging technologies. This cell will help startups invi. Power Subsidy: ESDM industry shall be eligible for understanding different types of IPRs, filing and disposalgetting power @ INR 5.49 per unit provided the investor of IP applications related to patents, trademarks, etc.signs Memorandum of Understanding - MoU with Gov- v. No CLU/Auto CLU: Government has identified 31 ‘Noernment of Haryana for investments in the State. CLU’ blocks and 75 ‘Auto CLU’ blocks with an automat-vii. For Mega Projects: Mega projects shall be eligible ic dispensation of deemed clearance for setting up offor Special package of incentives over and above of the Industrial Units. The Government shall endeavor tostandard package for ESDM units shall be considered by earmark some of these blocks to set up ESDM units.the empowered committee on case to case basis. vi. Time bound Clearance: The Government of Haryanaviii. Ultra mega projects: Ultra-Mega Projects shall be has made a provision for time bound clearance for 119offered special package of incentives by Haryana Enter- services by notifying in Right to Service Act.prise Promotion Board including such as mixed land use, vii. Self-Certification: The Government of Haryana willallotment of land at a price to be decided by the Govern- allow Self-certification, 3rd party verification for Labourment etc. related clearances and approvals under 13 acts of LabourSimplified Regulatory Regime department in Haryana. Self-certification / 3rd Partyi. Dedicated Single Roof: Government of Haryana has verification shall be allowed for below mentioned acts ofconstituted Haryana Enterprise Promotion Board (HEPB), Labour.which will provide one stop shop clearances to compa- viii. Online single return for Acts pertaining to Labour:nies willing to invest in the State. The governing council The Ministry of Labour, Govt. of India has combinedof the board is headed directly by the Chief Minister to forms of 12 central labour laws, under which returnsensure clearances are given in a time bound manner. are to be filed, into a single format. The Government ofii. International Desk: Government of Haryana is keen to Haryana will expedite the process of implementing theattract foreign investments in the ESDM sector. To enable system for filing of online returns for labour compliance using single application form and will make a provision Spotlight on Indian Electronics 2018-19 | 89

State Policy | Haryanato keep labour related records in electronic form. Human Capital Developmentix. Relaxation in Inspection from various Departments for ESDM i. Employment Generation Subsidy: For units setting up ‘B’, ‘C’ &units: ‘D’ blocks shall be eligible for employment generation subsidy ofa. Department of Labour: There shall be no inspection by Labour INR 36,000 per year per employee for a period 5 years for capacityInspector and the Factory Inspector without the prior approval of building.Head of the Department. ii. International Research and Innovation Scholarship Program:b. Department of Boilers: There shall be no inspection from Government to reimburse 50% of expense of at-least 50 researchBoilers inspector. Self-Certification / 3rd party inspection to be scholars every year with maximum of INR 10 lac per student fromallowed. premier institutes and universities of Haryana for research fellow-x. Allowing three shifts and night shifts for Women: ESDM Units ship in electronics with globally renowned institutes.shall have general permission for 3 shift operations with women iii. Skilling: Haryana State Electronics Development Corporationallowed to be working in the night, subject to the units taking the Limited will closely work with various Industries and Industrynecessary precautions in respect of safety and security of women Associations to analyze the gap and assess the on ground demandemployees. of Job Role.xi. Essential Service: The Government will be declaring ESDM iv. Faculty Training: The State Government aims to train andIndustry as Public Utilities under Industrial disputes Act 1947. certify at-least 500 trainers annually for the next 5 years for ESDMxii. Subleasing of land: Anchor units shall be allowed to sublease industry through certified courses. The courses at Training insti-maximum of 10% of the land to vendor units and manufacturing tute shall be aligned to the skill gap assessment report of NSDCsupport services including R&D, distribution / warehousing, de- and the new courses pertaining to training of trainers shall besign / 3D printing, provided value of services availed by the anchor introduced as per the industry need.unit is at-least 75% of the total revenue generated by support v. Curriculum Alignment: The State will to align curriculum ofservice entities. State board schools and universities, ITIs and Polytechnics withInfrastructure Augmentation Industry needs in association with NASSCOM and NSDC especiallyA. Development of Electronic Manufacturing Clusters: on skills where gaps have been identified by Skill gap assessmenti. Government of Haryana shall earmark dedicated land parcels report 2013 by NSDC.for Electronics Industry in Gurgaon district and across the KMP vi. Mandatory Apprenticeship: All educational institutions offer-expressway. ing under-graduate courses in software engineering, electronicsii. Further, the State intends to create infrastructure highly suited and computer sciences shall implement a mandatory scheme toto electronics units by providing reservation of 25% of land ear- allow students to take up industry aligned courses to improvemarked for Electronics industry for common social infrastructure their employability.such as housing facilities, medical and sports facilities, schools etc. vii. Skill Development Subsidy for Training providers: Governmentiii. Fiscal assistance for developers: The State shall provide fiscal of Haryana shall channelize the available GoI skill developmentassistance up to 50% of the project cost with a maximum of INR schemes and also promote skill development mission in the State25 Cr. Project cost to include development of basic infrastructure, for creating IT skilled labor pool in Haryana which is at present aessential service, welfare services, support services such as Centre major hardship. Since skilled women working can be employed inof Excellence (R&D, incubation and consultancy services),Training large numbers in ESDM sector, skill development for this sectorFacility, IT infrastructure etc, Manufacturing support infrastruc- is in collaboration with National Skill Development Mission, GOI,ture such as Tool Room, CAD/ CAM design house, Plastic Moulding, must be undertaken in every district.Sheet Metal Stamping, Packaging / Epoxy Suppliers, Testing and viii. Infrastructure Support to training providers:Certification Facility, Component testing etc. a. The Government will provide space and infrastructure in exist-iv. EDC Charges: The applicable rate shall be internal rate of HSI- ing Government ITIs and Polytechnics to training providers on ‘offIDC. Further, HSIIDC may extend External Development Services working days and weekends’ at a nominal payment of INR 100 p.a.to plots / land parcels adjoining to HSIIDC land by charging appli- to run industry focused courses for ESDM sector. To avail the saidcable HSIIDC EDC. EDC to include last mile connectivity for road, benefit the training provider to ensure 70% placement from thesewater, power and bandwidth. focused courses.v. The developer shall be entitled to get 100% reimbursement of b. A bank guarantee of an amount equivalent to the prevailingthe stamp duty as well as registration fee paid by them to the annual rent of the ITI / polytechnic space will be submitted by theGovernment of Haryana, towards lease/sale/transfer of land ear- provider.marked electronics industry.B. Uninterrupted Power Supply: ESDM units shallbe exempted from the purview of statutory powercuts. Further, for providing 24x7 quality power onearmarked land parcels for Electronics Industry, twodedicated industrial feeders shall be provisioned.C. Conducting focused Marketing events/Roadshows:i. The Government shall promote and encourageparticipation from industry in various national andinternational events, exhibitions and conferences.Government would also undertake various promo-tional events and road shows at various locationsfrom time to time.ii. The State shall be conducting roadshows to attractprivate sector investments from target countries inthe next 2 years.Spotlight on Indian Electronics 2018-19 | 90

State Policy | Telangana TELANGANAElectronics in TelanganaTelangana has continuously been at theforefront of electronics manufacturing in thecountry. The traditional entrepreneurial spiritof the locals, coupled with the access to skilledworkforce and inherent supply chain advantag-es of the location have resulted in tremendousgrowth of the Electronics industry over the lasttwo decades. Over time, a physical ecosystemhas evolved with the Electronics and associatedindustries in and around Hyderabad. Addi-tionally, the high quality of technical educationand skilled graduates from engineering collegesacross the state has served as a critical growthfactor.Hyderabad, currently, is marching Electronics Policy 2016 is: Promoting • Promote the concept of duty free ware- towards establishing itself as one Telangana as the ideal destination for housing of the leading electronic hubs Electronics Industry through creation b) Access to skilled workforce: Createglobally. It houses over 250 companies, of sustainable ecosystem, making this environment to ensure availability ofboth large and small which together em- industry a major contributor to employ- low cost and skilled workforce through:ploy greater than 50,000 professionals. ment and economy in the State Based • Skill development programs from TASKIn 2014-15 the total value of electronic on historical analysis as well as the • Workforce training subsidiesproducts and services exports accounted projections made by industry, Telangana c) Supportive policy environmentfor USD 250 million and this amounts to aspires to achieve the following by 2020: • Incentivize domestic productionabout 6% of national electronics exports. • Attract investments to the tune of USD • Favorable regulatory environmentFurther, the same year had witnessed 3 billion in the Electronics sector resulting in ease of doing businessa massive growth in production to the • Create an employment of 160,000 d) Tax and fiscal regimevalue of USD 1 billion. Hyderabad hous- • Enhance production from approxi- • Subsidies and other incentiveses key global players in the MSM and mately USD 1 billion to USD 7.5 billion • Stable and predictable tax regimeMega industries sectors, such as Nvidia, The State seeks to achieve this aim Although the Government of TelanganaMotorola, Qualcomm, AMD, CDAC, through: seeks to generate a myriad of positivesCypress, etc., in addition to home grown a) Infrastructure support through technological evolution, therecompanies such as BHEL, BEL, HBL, ECIL, • Development of state-of-art EMCs by have been rising ecological concernsetc. Recently, Hyderabad has attracted public and private collaboration over e-waste generation, managementinvestments from giants such as Apple, • High quality roads and transportation and disposal. Realizing the growingMicromax, etc. and has cemented its • Good connectivity through rail, road concern over e-waste, the Governmentposition as a promising electronics in- and air of Telangana shall work on the followingvestment zone on the global map. • Reliable electricity and water supply initiatives:Vision and GoalsThe Vision envisaged for the Telangana Spotlight on Indian Electronics 2018-19 | 92

State Policy | Telanagana• Formulate a comprehensive regulatory ics unit have been defined in the M-SIPS would be limited to INR 75,000/-.approach surrounding e-waste manage- 2012 notification of MOC-IT. • Reimbursement of actual test chargesment. ii. Financial assistance for greenfield and received by BIS for Registration (Max. INR• Design an efficient mechanism for audit- brownfield EMCs: For greenfield EMCs, 25,000/-).ing safe e-waste management practices financial assistance will be provided for vii. Skill Development:and ensuring compliance. up to 50% of project cost, limited to INR 50 • To facilitate skill development in the• Setting a direction for promoting safe Crores for every 100 acres of land For ex- Electronics sector focusing on youth toe-waste management practices. pansion/ upgradation of brownfield EMCs, increase their employability to work inFocus Areas financial assistance will be provided up to ‘Manufacturing’ and ‘Service support’ func-In order to achieve the above goals for the 75% of the project cost, limited to INR 50 tions, a ‘Scheme for Financial Assistance toIT department, the Government has identi- Crores. Telangana for Skill Development’ has beenfied key focus areas: iii. Development of Electronics Manufac- approved by GoI.1. Development of dedicated EMCs and turing Clusters by MSMEs: • The scheme provides for 75 % of trainingquality infrastructure • Reimbursement of expenses of diagnostic fee as assistance for training courses iden-2. Encouraging Electronics companies by study for Greenfield or Brownfield EMCs – tified by Electronics Sector Skills Council,ensuring end to end supply chain for all INR 2.50 Lakhs/cluster Telecom Sector Skills Council and NIELIT.sub-sectors • Reimbursement of expenses incurred for • The scheme also provides for 100% fee3. Human resources development soft interventions will be 75% of the sanc- reimbursement to 40% of the seats which4. Promote R&D, create ecosystem for inno- tioned amount of the project cost in the would be reserved for the candidatesvation and startups DPR, limited to INR2.5 Lakhs/cluster belonging to SC/ST/Economically weakerThis in turn is expected to reinvent the • Reimbursement of expenses incurred for sections.business propositions and incentivize the preparing Detailed Project Report (DPR) – • Further, Registration-cum-Certificationsector so that the Industry can penetrate INR 5 Lakhs/cluster fee per candidate (for the first attemptthe global markets not only on value and iv. Preferential market access: The policy only) would also be reimbursed to assess-cost factors, but also on customization. of GoI on preferential market access in ing/certifying agencies.Keeping the above in view, Government, Government procurement for domestically • A target of 10,000 (2000 per year) candi-after elaborate discussion with respective manufactured electronics products shall dates for Telangana has been set to benefitstakeholders of Electronics sector, such be implemented in all Government of from this schemeas TELMA, ELCINA, MAIT, ICA, IESA etc., Telangana departments. Special preference viii. Promoting R&D and announcement ofidentified the following initiatives to be shall be given to Telangana-based manu- national awards:provided to the Electronics Industry in the facturers. • GoI has targeted to increase the numberState of Telangana. v. Reimbursement of expenses for testing of PhDs to 3,000 over a period of 5 years and certification required for export for with 100% funding by the GoI.Incentives MSMEs: • To recognize the achievements in the • Reimbursement of testing charges Electronics industry, to motivate the en-Incentves provided by Govt. of India under incurred for getting the products tested trepreneurs in the sector and to encouragethe National Electronics Policy (NPE) 2012 from any lab domestic/abroad, subject to new investments and innovation in thei. Financial incentives under M-SIPS: the testing charges incurred for getting sector, GoI has constituted various nationalDistricts of Hyderabad, Ranga Reddy & Me- the products tested at STQC labs as per awards with budget of more than INR 3.5dak have been notified under the Brown- prevailing rates of test charges levied by Crores.field EMCs and are eligible for the financial STQC labs. The maximum reimbursementincentives under the GoI’s M-SIPS scheme: under the scheme would be limited to INR Incentives provided by the Gov-Electronic products manufacturing units 75,000/-. ernment of Telanganashall be provided incentive for 20% of • Reimbursement of 25% charges towardscapex for SEZ based units and 25% of capex the annual certification fee paid to any Common incentives applicable to all cate-plus reimbursement of excise/ CVD on certification body (domestic/abroad ) per gories of Electronics Industrycapital equipment for non-SEZ based units. model at actual, subject to: I. Electronics Industry units are regulatedThresholds for investments in the Electron- and governed as per the provision of the 1. Upto INR 50,000/- for one Air Act, Water Act, and E (P) Act, 1986 model. II. Electronics Industry companies are ex- 2. Upto two certifications and empt from the purview of statutory power each model would qualify only cuts on similar lines as the IT/ITES Industry once under the scheme III. Electronics units are permitted to file vi. Reimbursement of expens- self-certificates, in the prescribed formats es relating to compliance with IV. General permission on similar lines of “Indian Standards for MSMEs: IT/ITES Industry for three shift operations • Reimbursement of actual with women working in the night for Elec- testing charges subject to the tronics Industry. testing charges incurred for V. Exemption of Registration, Transfer & getting the products tested at Stamp Duty: Electronics industry shall be STQC labs (for initial registra- eligible for 100% reimbursement of the tion as well as during surveil- Stamp Duty, Transfer Duty and Registration lance) as per prevailing rates Fee paid on sale / lease deeds / mortgages of test charges levied by STQC and hypothecations on the first transaction labs. The maximum re-im- and 50% thereof on the second transac- bursement under the scheme tion. This is not applicable on allocation of Spotlight on Indian Electronics 2018-19 | 93

State Policy | TelanganaGovernment land. 40%, 4th year – 30% and 5th year – 20%. units.vi. Power Subsidy: xi. Skill upgradation & Training: To provide d. Stamp Duty: To reimburse 100% stampa) Electronics industry is classified as skill upgradation training in the Electronics duty.industrial units for the purpose of levying sector for required number of candidates e. Patents: To reimburse 100% cost towardsthe industrial power tariff category. Indus- and to contribute matching share in the incentives for filing patents limited to INRtrial Power Category Conversion Certificate EDF as per Government of India Policy 5 Lakhs.is accorded on all the Service Connections xii. Investment Subsidy: 20% Investment f. Capital Subsidy: To allow a 20% capital(Power Meter No.), and exclusively used by Subsidy, up to a maximum of INR 2 Crores, subsidy, subject to a ceiling of INR 10the IT industry for their operations, even for the first 25 eligible companies in Crores per company (including subsidiariesin multiple locations/meters. The effec- Medium, Large and Mega categories; up to and ancillary units).tive date of application of the incentive of a maximum of INR 50 Lakhs for the first g. Interest Subvention: 5.25% per annumIndustrial Power Category tariff, is from 50 eligible companies in Micro and Small on term loan for a period of 5 years orthe date of issue of the said Certificate by categories. till reaching 50% of the capital involved,Government. xiii. Land Cost and Lease Rentals: Land whichever is earlier, subject to an overallb) Electronics companies will be permit- shall be made available at affordable costs ceiling of INR 1 Crore per unit per annum.ted to avail renewable energy under open to companies. Further, the Government h. Reimbursement of Net VAT: The unitaccess system from within the state after shall provide a 25% subsidy on lease can deposit the tax for the first quarterpaying cost component to DISCOMs as rentals to eligible companies for a period and reimbursement of net VAT would befixed by ERC (subject to a maximum of one of 10 years. 20% of land that is allotted by credited at the end of the quarter, subjectthird of their total power requirements). the Government of Telangana can be used to its adjustment depending upon actualc) Exemption of Electricity Duty: New Elec- for dormitories exclusively for the employ- incident of taxation. Effectively, it meanstronics industry units, after coming into ees Promotion of use of Cleaner/ Greener reimbursement of net VAT on a quarterlycommercial operations will be entitled for Practices: Suitable incentives from policies basis and will be applicable for first 5 years100% exemption on Electricity duty for a and GOs approved by the Industries and without any investment limit.period of 5 years. Commerce, and Energy departments shall i. VAT Rate: The rate of VAT will be 5%.vii. Assistance in Patent Filing: 50% of the be applicable. j. CST: To waive off CST @2%.cost of filing patents will be reimbursed to xiv. Land Conversion Subsidy: The Telan- iv. Women Entrepreneurs:the companies having their headquarters gana government aims to encourage the a. Additional 10% investment subsidy forin Telangana, subject to a limit of INR 2 private EMCs by assisting in conversion of Women subject to a maximum of addition-Lakhs land from agricultural to non-agricultural. al INR 10 Lakhs for MSEs.viii. Reimbursement of Costs for Quality Specific Incentives for Mega Projects and b. INR 5 Lakhs as recruitment assistance,Certification: 50% subsidy on the expenses other Areas of Strategic Importance basing on the level of employment gener-Incurred for quality certification limited The different segments in the Electronics ated, for employing minimum 50 employ-to INR 2 Lakhs (Conformity European (CE), sector need to be promoted to enable them ees within two years of commencement ofChina Compulsory Certificate (CCC), UL to compete with the global markets as well commercial operations. This assistance willCertification, ISO, CMM Certification, SA, as domestic consumption. be managed and disbursed by TASK.RU etc.) i. Mega Projects: Government will also c. Providing 25% subsidy on lease rentalsix. VAT/ CST/ SGST Reimbursement: 100% extend tailor-made benefits to Mega and up to INR 10 Lakhs per annum maximumReimbursement of net VAT/CST or State Strategic Projects to suit to a particular up to a period of three years, for the plug-Goods and Services Tax (SGST) for a period investment requirements on case to case and-play built up office space from 1000of 5 years from the date of commencement basis. sft. to 10,000 sft., Industry Shed rangingof commercial production to Micro and ii. Special incentives shall be provided from 1000 sft to 20,000 sft, leased fromSmall companies, limited to a maximum to the following focus areas: a Medical Government or Private owned IT Park / ITof INR 5 Crores. In case of Medium, Large electronics, b. IoT, c. LED, d. Semiconduc- SEZ / Industrial Park.and Mega companies, this reimbursement tors, e. Display, f. Aviation and automotive v. SC / ST Entrepreneurs: Incentives andis applicable for a period of 7 years from electronics subsidies shall be applicable as mentionedthe date of commencement of commer- iii. Mobile Manufacturing Units under T-PRIDE.cial production, limited to the investment a. Allotment of Land: To allot land without vi. Support to R&D Institutionsmade in plant and machinery. infrastructure cost considering to “Anchor a. Promote innovation in the ElectronicsThe unit can deposit the tax for the first Unit” and total of 10 units will be consid- sector through Awards by way of grants.quarter and reimbursement of net VAT ered as Anchor units and will be consid- b. Assistance at 20% of project cost or upwould be credited at the end of the quar- ered for allocation of land on cost basis to to INR 10 Lakhs, whichever is lower, forter, subject to its adjustment, depending this industry. sponsored research work from any indus-upon actual incident of taxation. Effective- b. Power Subsidy: To supply power on av- trial unit to Government R&D Institution /ly, it means reimbursement of net VAT on erage cost of service (as fixed by Telangana Government Technical Collegea quarterly basis and will be applicable for State Electricity Regulatory Commission).first 5 years for Micro and Small compa- Alternatively, the units can avail 25% power Infrastructure Supportnies, and first 7 years for Medium, Large subsidy for a period of 3 years or INR 30and Mega companies. Lakhs, whichever is earlier. i. I Mega Electronics Hub: Government ofx. Transport Subsidy: Transport subsidy on c. Reimbursement of Costs for Quality Cer- Telangana is developing Hyderabad Infor-fuel cost / billing and freight (train), for the tification: To develop a system of self-cer- mation Technology and Investment Regionfirst five years on imports of the parts & tification, by the Industries Department, in (ITIR) in an area of 200 sq km.components, from the sea port to Telan- consultation with concerned departments, ii. Common Facilities Centre: Commongana plant. Following is the percentage subject to the unit complying with all Facilities Centres would be created in eachsubsidy that shall be offered over 5 years: provisions which will be followed for these of the proposed EMCs.1st year – 60%, 2nd year – 50%, 3rd year – Spotlight on Indian Electronics 2018-19 | 94

State Policy | TelanaganaTELANAGANA a. The format of application is common for all the aforesaid incentives and can be filediii. PPP for Creation of Electronics Infra- conducting surveys and/or research on on-line by visiting states’ web site: www.structure: The facilities, in the form of trends in technology, market intelligence telangana.gov.in. However, physical copyelectronics hubs, hardware parks and elec- or on other work useful to the Electronics of the application, along with requisitetronics zones, shall be developed adopting Industry. supporting documentation, as is indicated,a transparent PPP policy. • Business Networking and Promotional shall be filed for processing and placing itiv. Provision of Built-up Space: The Gov- Events: Government shall promote and before the CCESDM for consideration ofernment of Telangana shall actively pursue encourage participation in various national such incentives as per eligibility.the creation of built up spaces and provide and international events by the industry b. Processing and release of incentives areit at subsidized rates to eligible companies. and by leading a Government-industry subject to verification and authenticity ofv. Other Critical Infrastructure: business delegation to the identified information furnished by company.a. Connectivity: The Government shall Exhibitions and Conferences. A reimburse- c. An Electronics company is eligible andstrive to provide state of the art connectivi- ment/ grant of exhibition subsidy will be can apply for claim of any incentive underty across the city. awarded for participating in the national/ one category only.b. Assured Power: All the notified EMCs international exhibitions. d. The interpretation and decisions of thewill have an assured 24/7 access to power. Government is final with regard to appli-Necessary laws will be passed to facilitate Governance Mechanisms and cations made by the Industry for any of thethis mechanism. Facilitations for Electronics above incentives. Industry ii. CCESDM: An empowered ‘ConsultativePromotion of Electronics Telan- Committee on Electronics System Designgana i. Effective Single-Window System: and Manufacturing (CCESDM)’ would The government has implemented a very be formed with the representatives of1. Mega Electronics Events shall be orga- effective clearance system for the indus- Electronics industry and the other stake-nized in the state in partnership with the tries that will go beyond the traditional holders. The CCESDM would administerindustry. single window system. Electronics Indus- the incentives in a speedy, time-bound and2. The Government shall encourage road try will also qualify and follow the similar transparent manner.shows, viability gap funding and market- privileges for single window clearance. Such applications shall be prima facieing activities to attract investments to This system, called the Telangana State scrutinized by the Sub-Committee of thethe State. Further, the Government shall Industrial Project Approval and Self-certifi- CCESDM headed by the Secretary, ITE&C, inprovide assistance to industry associations cation System (TS-iPASS), will be strength- association with industry representatives,and identify liaison officers as point of ened by way of legislation. A Right to on the eligibility, veracity of technical/contacts to simplify investment proce- Single Window Clearance, on the lines of financial information, etc., before beingdures. the Right to Information, will be bestowed placed before the CCESDM for its consid-3. Incentives to the Industry for all applicants. Penal action will be eration.• Technology & Market Support: Govern- imposed on the concerned officers who iii. Time-bound approvals: The followingment will support Associations of Elec- delay the applications. The procedure for procedural reform would be undertakentronics manufacturers and exporters for applying for the incentives offered by the with an aim to provide approvals to the State is as follows: industry/ investors within the timeline as mentioned under TS-iPASS: a. Integrated application for all permis- sions b. Escort Officer to be assigned the respon- sibility for getting approvals c. Escalation at various levels and regular monitoring A provision shall be made in the rele- vant legislations or rules that in case the required approvals are not granted within 4 weeks of receipt of an application in full-shape, the approval shall be deemed to have been granted. The ITE&C Department shall issue ap- propriate Implementation/Operational Guidelines with implified application proforma and procedure for claiming of the incentives. Spotlight on Indian Electronics 2018-19 | 95

ElectronicsPolicy: GujaratThe State Government is committed to give fillip to indigenous manufacturing of electronicproducts by creating a favourable investor-friendly ecosystem across the entire value chain ofESDM sectorR olling out a suitable policy framework for in- troducing a ‘single window dispen- sation’, towards the establishment of the Electron-ics manufacturing units in the Stateand addressing the challenges faced bypotential investors and suitably facilitat-ing access to necessary infrastructuralfacilities like land, power, water, etc. forthe growth of the industry. socio-economic empowerment and inclusive2. Proactively helping in building up a sturdy development.eco-system of innovation, R&D, product design, 4. Taking up ESDM sector specific skill develop-engineering, assembly & testing, incubation and ment & training programmes.production in Electronics in the State. 5. Focusing on promotion and branding for Guja- rat as a leading ESDM destination.3. Promoting indigenously developed and en- It has been decided to create such eco-system asvironment-friendly manufactured high-quality to transform the State into a globally competi- electronic products, tive ESDM destination. Further, as a part of this which can be made Strategy, it has been contemplated: 1. To extend“It has been decided to create such available to the support to the ESDM industry in the Stateeco-system as to transform the State people of our State in conformity with the Government of Indiainto a globally competitive ESDM desti- and the country at af- policies and the notifications pertaining to thenation. Further, as a part of this Strat- fordable prices, withegy, it has been contemplated” a view to furtheringSpotlight on Indian Electronics 2018-19 | 97

State Policy | GujaratESDM sector. 2. To constitute a high-level committee with due sector. 3. Scheme for financial assistance for Skill Development inrepresentation from the Industry for marketing the State’s offers ESDM sector. 4. Scheme for supporting MSMEs in the Electronicsbased on its competencies and thereby attract investments into Sector. 5. A scheme to enhance the number of PhDs in the ESDMthe State. 3. To facilitate setting up of Semiconductor Wafer Fab and IT/ITeS Sectors.facilities and its eco- system for design and fabrication of chipsand chip components for consumption sectors such as Auto, State Government incentives for clusters andTelecom, Agriculture, Irrigation, Life Sciences, Education, Energy, anchor units: In addition to the benefits under the aforesaidWater, Rural Development. 4. To facilitate setting up of Green-field and Brownfield Electronics Manufacturing Clusters (EMCs) schemes of Central Government, the State Government will offer:with world-class logistics, infrastructure and business-friend- 1. Assistance of up to 25% of the Project cost to Greenfield EMCs,ly facilities with sea, air and inland connectivity. 5. To assist subject to a ceiling of Rs. 10 Crores.setting up of Design City in the State to attract leading design 2. Special Incentive Package for two Anchor Units (with invest-companies from across the globe to set up their base in Gujarat. ments more than Rs. 100 crores) in each of the Greenfield EMCs.6. To encourage coordination and tie up with Electronic Cities of 3. Registration/Stamp Duty Concession: ESDM units which intendinternational repute and engage with top ESDM companies to to establish/expand/diversify will qualify for 100% exemption inpro-actively invite investments into the State. 7. To suitably help in stamp duty and registration fee in lease/sale/transfer of land forproviding basic infrastructural facilities like uninterrupted power, the first transaction.water, roads, etc. 4. Uninterrupted Availability of Power & PowerHuman Resource Development (HRD): 1. To work Tariff Subsidy to ESDM Units: With a view to sustainingclosely with the Private Sector, Universities and other institutions the industry, Government will allow uninterrupted power supplyof learning in designing tailor-made curriculum/programmes to and sanction subsidy in power tariff as under: If required, dedicat-cater to the requirements of the 5 industry. 2. To facilitate en- ed additional feeders would be provided both to the Greenfield ashancement of the number of graduates / post graduates and other well as Brownfield EMCs. Power Tariff Subsidy @ Re. one per unitskilled manpower by suitably increasing capacities in Colleges in the billed amount of the utility for the units will be available/ Universities / ITIs / Polytechnics / Kaushalya Vardhan Kendras for the period of 5 years as promotional incentive to eligible units.(KVKs) through public-private partnership and otherwise by the The units purchasing electricity only from the state electricity /Education and Labour & Employment Departments of the State power distribution licensee will be eligible for this subsidy. TheGovernment. 3. To establish an ESDM University as one of the units either generating power from its captive power plant orleading technology research institutes in the Asia region. 4. To getting electricity through open access will not be eligible for theforge global partnerships with international institutes of repute subsidy. The units setting up captive power plant will be given as-and top corporates in the sector for innovation, R&D, knowledge sured supply of lignite under an agreement with Gujarat Mineraltransfer, strategic tie-ups, etc. in coordination with Gujarat Inno- Development Corporation (GMDC) for a period of five years. Thevation Council. 5. To encourage Industrial internships for UG/PG eligible units will be provided 100% exemption on Electricity Dutystudents and faculty exposure programme in ESDM Industry. for a period of five years from the date of commencement of their production. However, existing units will be entitled for ElectricityCreating local demand for electronic products and Duty exemption only for additional power.promoting ESDM companies in the State: 1. Prefer- 5. Single-Window Clearance System: An empowered ‘Single Win- dow Clearance Committee’ will be set up and operationalized forence will be given to locally manufactured electronic products in granting approvals and clearances for setting up New Units in thethe State for Government purchase / procurement based on the State. It would be supported by a ‘state-of-the-art centralized helpcriteria linked to the extent of local value addition in line with desk call centre’ on 24x7 basis.the Preferential Market Access (PMA) Policy of the Government ofIndia. Even if a company obtains contract manufacturing services Interest Subsidy: Eligible units will be entitled to availfrom a Gujarat-based unit or procures components manufac-tured in Gujarat, the value of such services / components will be interest subsidy as under: Interest subsidy for five years @ 7% forincluded in the value addition. 2. The establishment of a free trade MSMEs and 2% for large Industries having an actual investmentand warehousing zone (FTWZ) for Raw Materials, Components, up to Rs. 100 Crores. 1% additional interest subsidy to the youthConsumables, Parts and packing Materials required for Electronics less than 35 years of age in case of the first project or to the SC/ST/hardware manufacturing will be suitably facilitated in the State to Women/Differently-abled persons. Maximum amount of interestmake access to input/ raw material easy for local Industry. subsidy per annum shall be Rs. 25 lakhs (Twenty Five Lakhs only) for MSMEs and Rs. 50 lakhs (Fifty Lakhs only) for large units.Creating eco-system for innovation, R&D and in- Incentives to ESDM MSMEs: Following incentives under Schemecubation in ESDM sector: 1. To facilitate IP development for Assistance to Micro, Small and Medium Enterprises (MSME) as announced by the Government:by Indian industry, academic and R&D institutions with the activesupport of the State Government. IP creation by local units will be Quality Certification: Any MSME EDSM unit registered ingiven prime importance. 2. To infuse special funds jointly in part-nership with the industry and/or other academic institutions of Gujarat will be granted assistance for a maximum of three indus-excellence for promoting innovation and incubation. 3. To supportsetting up of R&D centres equipped with Testing/ Validation/ QAequipment to be shared by the industry. 4. To set up ESDM Incu-bation Centres and Product Development Centres in collaborationwith global R&D centres of eminence and repute.Incentives: The State Government will play a proactive role forextending support to eligible units/ clusters, students and Institu-tions to avail benefits as under: 1. Modified Special Incentive Pack-age Scheme (MSIPS) to offset disability and attract investments inElectronics Systems Design and Manufacturing (ESDM) Industries.2. Electronics Manufacturing Clusters (EMC) scheme to provideworld class infrastructure for attracting investments in the ESDM Spotlight on Indian Electronics 2018-19 | 98

State Policy | Gujarattry standard quality certifications, at a rate of 50% of cost of quali- the rate of 50% of expenditure. b) Assistance to Industry Asso-ty certification within the overall ceiling of Rs. 6 lakhs in 5 years. ciations for participation in International Trade Fair as Gujarat Pavilion outside India @ 50% of total rent. c) Viability Gap Support to Industries Associations for organizing Seminars / Exhibitions in Gujarat.TMR 3 & TMR 6 Series Technology Acquisition Fund: Assistance for acquisition of appro-priate technology in any form to a group of at least 10 MSMEs forRailway Grade DC-DC Convertera specific product/platform will be provided by way of 50% grantsubject to maximum of Rs. 1 cr. per technology including royalty Semiconductor Fabrication has been notified as a Focus Sector un-payments for the first two years. Features:der the Scheme for Assistance to Mega/ Innovative Projects. Mega ESDM Projects: Projects generating employment of more than 500Support to R&D Institutions: In order to give impetusiGptnorocotvuvhebierdanRetmideosenteonactRre.c&nah)tDraAenipsnd,asertDtittcefu.vrtwoeiomliolnlpsnameslsweeotnRubt,&penDcweoeiivntdehs-rtbteihatduse.etTaidohpnsepusra,postpvesaoissltrtitoanfwngtcihfelal•••ecwbiSelRUCitiltalaiolteteirmsla,wpawaMpopyicfeadecrtlagaskeSonapandgI4PpPse)r:r-oaao1o8jnnfedvdciIMnnatafscrpbl.eee:oSnustvcEhatthei:Nvilenwe9mcvsi5–ealewls30sobtimelf6e1lAebc,5sone1s5ntoiss8o,fttffar–eEuRnr7Neesc.5dde26tao5oa1sn0Mn3MaCd7ierccoga3r4rsaoee3Psa-rtn(–ooed1j-xecSc6camltsu0sead. lAibVlnaEgsDsnpitsteChecferoiparclroisst-bsScuipeabotgjinieovscneotnrtteooudrpmerectaoosxeg6iamn0ri%cuzhemodwf oRtohf&reRkDspf.Irrn5oo0smjtelicatautkntchyioosis.nntbd/e)uxTAscestlcsurhiidasntilinacungancllieatCnof/odlilrneadCgnuoedsnatbtprru•••ypaiclradIDSots//ivsinuOnoegad-g-lliesOoaewbDussyloaua(tGupMtnaliIdduDoSl EtCnbwO:seoh)±3rauefop50bntrppyV0nlpuip,o0curttar±iivbcf3Vi1halee.tDad23estoCibVVdnye,M,gvS±5sSethaEl1Voetsep,5dienI9VanrntdVaDhdun,eCsdp1EtlraSo2isDetsVsiMinsa,tnmsa1ednic5cnMteioVierin,nsaet2sraset4wDneVsteelptdlDo.aervCMtemSloEepsnetd,bcPtooyasaAttceIoCenfTilltEiannAwgdsiolaslfnbiRdsest.b1cau0oninlladscikiednh:egsra,efs)oduArbasmjtsei5ecse0ttat%tinonocgmfewtaahxtietithmhpetruhomrejaetecoextfopcRfoesns55td0,0%ietxlusacruklebu•••hfjdsoe.iFOScrntuhgploleyrrtracetiigrncugulaittetepmdrpooeteurctapttiuuotrnsearnadngceur–r4en0t°Climtoita+t9io0n°Cobtaining domestic patents by any Electronics unit/institut•ionR. eb)mote On/OffQuantum of assistance can be enhanced to Rs. 2p5atleankthastftoorr•ninetySerah-nodcknational patents by a Company. c) Fees paid to & Vibration : MIL-STD-810Fpatent service centre will be included d) Maximum five pat•en3ts-years product warrantyper unit over a period of five year will be eligible.Market Development Support: a) Assistance to MASuMthoErized Distributor for India & Sri Lanka:units for participation in International Trade Fairs outside IBRneadbnuigataolarortEele5c6tr0on0ic7s5P, vInt.dLtida, 199/D, First Floor, 4th Main, HAL 3rd Stage , Jeevan Bhima Nagar | Tel: +91-80-25261111, 25261122; Fax: +91-80-25261133 Email: [email protected] ; Web: www.rebutor.com ELE Times | 17 | April, 2018 Spotlight on Indian Electronics 2018-19 | 99

Electronics, IT and ITESInvestment Policy: ChhattisgarhThe State of Chhattisgarh recognizes the importance of IT as a key enabler in its economicdevelopmentT he State of Chhat- tisgarh recognizes the importance of IT as a key enabler in its economic development has already created action frameworkfor: Promoting Innovation, BusinessIncubation, and Entrepreneurship in theSector; Establishing first Smart City inthe country at Naya Raipur; Creation ofElectronic Manufacturing Clusters andITIR; Access to Finance to new IT&ITeSunits of the state; Interoperability and Academia and Research in the state; EstablishingStandards for operations in the state; Creation of and extension of world class IT infrastructureMarket Opportunities within the state for such including 4G network Latest technology accessnew IT&ITeS units; Developing Online Clearance in Mobile and broadband by extending fiber toand encouragement to Online Economy; Driving home and fiber to every village; State notifica-Growth through Data Science within govern- tion on Privacy and Security, Data protection & ment for decision Cyber Security; Identity management using UID making; Improving Adhaar framework.MSME Units established in the state shall be reim- Skills across the Incentives: The state of Chhattisgarh welcomesbursed 30% of the charges paid towards availing Workforce by helping businesses to leverage the state as a strategicinternet bandwidth to ISP for a period of three establish IIT, IIIT and vantage base, from which to implement growthyears, from the date of start of commercial produc- IIM and other world strategies and to manage and integrate its busi-tion, limited to total reimbursement of Rs. 3 lakh class institutions in ness operations for the region and beyond. Eli-per annum. the state; Supporting gible businesses with substantive plans to growSpotlight on Indian Electronics 2018-19 | 101

State Policy | Chhattisgarhthrough conducting high value activities in state may apply to up to a maximum limit of Rs.10 lakhs, subject to maximum 2qualify for various incentives under this policy given hereinaf- patents per annum.ter. Successful applicants would be required to satisfy rigorous Project Report Subsidy: Units established in the state shall berequirements with respect to the scale and qualitative aspects of reimbursed 1% of fixed capital investment to the industries es-the activities to be conducted in the state. tablished by the entrepreneurs, maximum limit Rs.4 lac towardsPolicy Based Incentives to Electronics, IT & ITES Sector Indus- expenditure for preparation of Project Report.tries: Interest Subsidy — Units established in the state shall be Lease/Rental Space Subsidy: Units established in the state and op-reimbursed 75% of the total interest paid annually up to the erating from leased or rented space, shall be reimbursed 50% leaseperiod of 8 years with maximum limit of Rs. 110 lakhs p.a. Fixed or rental charges for the space, limited to 10 lac per annum for ini-Capital Investment Subsidy — Units established in the state shall tial 3 years of operations from the start of commercial production.be reimbursed 50% of the fixed capital investment, excluding the Recruitment & Training Assistance: Units established in the statecost of the land, with maximum limit of Rs.150 lakh. Subsidy on shall be provided recruitment & training assistance of Rs 20,000Land Premium — Units established within notified IT Areas in per professional recruited in first three years from the date of startthe state shall be reimbursed 80% of the land premium as deter- of commercial production, limited to total reimbursement of Rs.mined by allotment agency against a prescribed guarantees by the 10 lakhs per year.investing industrial unit. Bandwidth Charges assistance: MSME Units established in theEmployment Generation Grant on EPF: Units established in the state shall be reimbursed 30% of the charges paid towards availingstate, after start of commercial production shall be reimbursed internet bandwidth to ISP for a period of three years, from theEPF amount paid for its employees, for initial period of 7 years. date of start of commercial production, limited to total reimburse-Electricity Duty Exemption: Units established in the state shall ment of Rs. 3 lakh per annum.be entitled for 100% exemption from payment of electricity duty Additional Incentives: Incentives for the workforce of Chhattis-up to 12 years from the date of commencement of commercial garh origin: Electronics, IT & ITES Sector Industries employingproduction. minimum of 50% of workforce who are domicile of ChhattisgarhExemption on CST and Entry Tax: Units established in the state State shall be eligible for additional incentive of 5%.shall be entitled to 100% exemption on CST and Entry Tax, for a Incentives to Large Investments: Entrepreneurs investing moreperiod of 10 years or till the date of GST being applicable in the than 100 Crores in the sectors under this policy may be consid-state, from the date of commencement of production for products ered for additional incentives.manufactured in Chhattisgarh.Stamp Duty Exemption: Units under this policy will be 100%exempted from Stamp Duty on execution of deeds for purchase/ lease. Further the exemption of 100% of the actual duty to bepaid will also be applicable for the second time sale of the sameproperty to other IT units under this policy.Quality Certification subsidy: MSME Units established in the stateshall be reimbursed 50%, up to a maximum limit of Rs.7.0 lakhsof the amount spent, in obtaining ISO– 9000, ISO -14000 or othersimilar national/international certificate, subject to maximum of 2certificates per unit per annum.Technical Patent Subsidy: MSME Units established in the stateshall be reimbursed 50% of the amount spent in obtaining patent Spotlight on Indian Electronics 2018-19 102

NDEXHigh Priority Market105 Automotive Power Electronics Market 154 IT & ITeS Industry in India108 Aerospace & Defence Market 157 APAC Consumer Electronics Market116 Automobile Industry in India 159 (IoT) Microcontroller Market120 Power Sector in India 160 India IoT Report126 Renewable Energy Industry in India 163 Medical Electronics Market131 Indian Semiconductor Market 164 Electronic Contract Manufacturing136 Test and Measurement Equipment Market 166 Generator Market141 Artificial Intelligence Market 167 Smart Meters144 Auto Components Industry 168 Other High Priority Markets148 Telecom Industry in India150 E-commerce Industry in India152 Global Electronic Display Market Spotlight on Indian Electronics 2018-19 | 104

AutomotivePower ElectronicsMarketThe global automotive power electronics market, in terms of value,is estimated to be USD 4.41 Billion in 2017 and is projected togrow to USD 5.49 Billion by 2022, at a CAGR of 4.48%. The auto-motive industry has been focusing on improving the quality aspectof vehicles. Automated electronic control technologies for automo-tive systems such as advanced driver assistance systems (ADAS),electronic stability control (ESC), and electronic control unit(ECU) have been evolving steadily year after year. The emergingtrend of the automotive industry is to manufacture vehicles thatfeature advanced technologies with optimized weight-cost ratio.Asia-Pacific is estimated to lead the automotive power electronics market during the forecast period, followed by North America and Europe. High volume markets with increased demand for high-end electronic and safety features in passenger cars makes Asia-Pacific the largest regional market for automotive power electronics.Also, upcoming legislations for safety technologies in developing countries are expected todrive the market growth in this region. The European market is growing at a steady pace owingto the stagnancy in automotive production. Also, the automotive power electronics market ofEurope is estimated to attain maturity in the near future, as most of the vehicles are equippedwith high-end electronics and safety features. The North American market is experiencing abalanced growth, in terms of value and volume. The existing vehicles in North America arealready equipped with advanced safety features and body electronics.Automotive power electronics make use of the solid state circuit device that coverts the currentfrom the source to the load. They are responsible to control power fluctuation in componentssuch as monitoring diodes, and transistors. The major application such as Body Electronics,Chassis & Powertrain, Infotainment & Telematics, and Safety & Security System requiresenergy conservation for the safety of the system. Power electronics, in automotive, consist ofvarious components such as MCU, power IC, and sensor. Power electronics are mostly usedin electric vehicles, but are also installed in passenger car and commercial vehicles so as toprotect the systems from power failure.Restraints of the market:Despite the high demand for advanced automotive electrical systems, this market still faceschallenges of providing integrated and lightweight components along with optimizing cost andquality trade-off.The ecosystem of the automotive power electronics market consists of manufacturers such asContinental AG (Germany), Mitsubishi Electric Corp. (Japan), Robert Bosch GmbH (Germany), Spotlight on Indian Electronics 2018-19

High Priority Market | AutomovtiveToshiba Corp (Japan), and research institutes such as the Japan Integration of advanced driver assistance, safety, and convenienceAutomobile Manufacturers Association (JAMA), European Automobile systems in almost all automotive vehicles will be the major factor boostingManufacturers Association (EAMA), Canadian Automobile Association the demand for automotive power electronics. Also, the increase in the(CAA), and Korea Automobile Manufacturers Association (KAMA). sale of electric and hybrid vehicles will considerably help the marketAsia-Pacific: Rapid vehicle electrification in the Chinese market is to grow over the forecast period. Hybrid electric vehicles have alreadypropelling the growth of the automotive power electronics market in the gathered a huge momentum globally, especially from the EuropeanAsia-Pacific region and North American countries. This popularity of hybrid technology willThe demand for technologically advanced cars has also witnessed a help the growth of power electronics market to a reasonable extent. Theboost recently in the Asia-Pacific region with the convergence of the ICT dominance of electrics and electronics in these vehicles will constitute thesector, the automotive sector, and the transportation sector. This has bulk of the share in automotive power electronics market.resulted in the emergence of the advanced vehicle ecosystem. Upcoming Incorporating electrical components and replacing the conventionalsafety regulations would increase the installation of automotive safety mechanical and hydraulic loads in the powertrain will help to improvetechnologies in passenger cars. The emergence of driving assistance efficiency in the vehicle by about 20%. The use of power electronics intechnologies has incentivized the OEMs to opt for efficient power powertrain systems for better engine propulsion, like that in controllingelectronic components to satisfy the ongoing market requirement. Thus, the engine parts or for transmission and controls, will be a major trendthe increasing use of technologically advanced cars is expected to push in the market during the forecast period. The adoption of electronics inthe need for power electronics in cars in the Asia-Pacific market. powertrain systems will be more applicable to electric vehicle conceptsAdvancements in Technology to Drive the Market – hybrid (HEV) and pure (EV) with increased efforts by the regional governments and environmental agencies to lower emission levels.The advent of high frequency and high power switching deviceshas brought about a comprehensive application of power electronic Automotive ICs a $30bn+ Marketconverters for energy conversion and motion control. Advancements ADAS, increasing electrification of vehicle industry drives automotivein technology in the form of safety and driver assistance systems, IC sales to new record highs in 2018 and beyond. The size of theinfotainment, powertrain advancements, and several others, due to automotive IC market is on pace to grow by 18.5 percent to reachthe never-ending R&D in the automotive and power electronics sector, $32.3 billion in 2018, according to market research firm IC Insights.make power electronics one of the prominent segments in the current This would set a new all-time high for the automotive IC market forautomotive market scenario. The electrical components in automotive the third consecutive year. The size of the automotive IC market issystems have gradually evolved from basic lighting and battery charging expected to continue increasing at a compound annual growth rate ofto infotainment, sensors, and safety. Reduction in cost and size of 12.5 percent between 2017 and 2021, reaching $43.6 billion in 2021.the components and systems will play a pivotal role in the growth Growth in the automotive chip market this year is being drivenof the market. Switched-mode power supplies (SMPS), is one such once again by automation in the form of systems monitoring andadvancement in power electronics, which helps to handle the high loads control, safety, ADAS, convenience and increasing development inof a powertrain efficiently. autonomous driving. The firm noted both consumer demand and government mandates for electronic systems that improve the safety, comfort and convenience of features in cars are being added to new cars each year. The continued rise of the average selling prices for memory chips is also boosting the automotive IC market. Last year, the automotive chip market was worth $27.2 billion, the current record for the segment. The automotive IC market has experienced extraordinary growth swings over the past few years. The market grew by 11.5 percent in 2014, then declined by 2.5 percent in 2015 before rebounding with growth of 10.6 percent in 2016. The market decline in 2015 was primarily the result of falling average selling prices across key automotive IC product categories, including microcontrollers, analog ICs, DRAM, flash, and general and special purpose logic ICs, which offset steady unit growth for automotive ICs that year. Automotive ICs are expected to account for about 7.5 percent of the total IC market this year. The firm forecasts that this percentage will rise to 9.3 percent in 2021. Analog chips are expected to account for Spotlight on Indian Electronics 2018-19 | 106

45 percent of the 2018 automotive IC market, with microcontrollers High Priority Market | Automovtivecapturing 23 percent share.Global Automotive Cockpit Electronics Market expected to register a CAGR ofThe automotive cockpit electronic market is anticipated to generate 17.2% during the forecast periodrevenues of more than $53 billion by 2023 and is expected to grow (2018 - 2023). The increase in theat a CAGR of close to 9% during the forecast period. The increasing sale of electric and hybrid vehiclesdemand for more centralized control and growing need for seamless is anticipated to drive the powerexchange of data and information between various systems is electronics market in the coming fiveaugmenting the growth of the automotive cockpit electronics market. years. Electric vehicles have alreadyThe integration of smartphones with automotive entertainment gathered huge popularity globally,systems and growing demand for connected cars is boosting the especially from the European andpopularity of automotive cockpit electronics in the global market. The North American countries.vendors are focusing on introducing advanced systems to meet thedynamic customer requirements. Growing Electric Vehicles SalesAutomotive Power Electronics in Electric Vehicles Market Driving the Demand for PowerThe global automotive power electronics in electric vehicles market is Electronics Market Growing awareness regarding vehicle emissions and increase in the government initiative to encourage the use of electric vehicles is driving the growth of electric vehicles and in turn, the market for power electronics in EVs. China is leading in electric vehicle sales across the world, which recorded 336,000 sales of battery electric vehicles and plug-in hybrid vehicles in 2016 and continued to see increased sales in the following years, owing to the increasing electric buses for public transport. The advent of high power switching devices has brought about a wide range of comprehensive application of electronic converters for energy conversion and motion control in an electric vehicle. Electric vehicles are now employing high voltage power electronics for the traction drive motors. The power electronics constitute around 30% of the total cost of an electric vehicle. Increasing Demand for Light Weight Switching Power Supplies in Electric Vehicles The development of a reliable lightweight switching power supplies would likely help to drive the power electronics in electric vehicles. The adaption of electronics in powertrain systems on electric vehicle concepts is primarily augmented by the increased efforts of the regional governments and environmental agencies (EPA) to lower emission levels during the last two years. Inverters and power converters account for the majority in the power electronics of an electric vehicle market. The demand for lightweight, multi portable devices that are likely to drive the growth of advanced power electronics significantly. Growing demand for electric passenger and light commercial vehicles from the developing economies, such as China, India, and the Latin American countries (Brazil and Mexico) are anticipated to drive the growth of the market during the forecasted period. However high cost associated with electric vehicles will slightly hinder the growth of the power electronics market.Spotlight on Indian Electronics 2018-19 | 107

Aerospace & DefenceMarket Global Airborne LiDAR System Market The airborne LiDAR system market reported a revenue of $732.4 million in 2016, and the UAV platform is expected to generate the highest revenue by 2021.High demand for airborne (MEMS) sensors. The recent The airborne mapping industry is imaging systems worldwide, innovations in LiDAR equipment and currently witnessing rapid growth in superiority of LiDARs as services enable the airborne LiDAR the deployment of airborne LiDAR compared to conventional technology to reach a wider segment systems for earth science and sensors, and rise in the demand of consumers in the industry. The forestry applications. Upcoming for miniaturized Micro-Elector companies are developing relatively airborne mapping technologies, Mechanical Systems (MEMS) low-cost, compact, and lightweight combined with LiDARs, are sensors are driving the growth of airborne LiDAR systems, which displacing traditional methods of the market. Moreover, high price of facilitate the enhanced remote controlling and monitoring in ground LiDARs and complex design and sensing services as compared to mapping services. The major focus development of LiDARs act as the the traditional technologies. This, of the airborne mapping industry is major challenges to the growth of in effect, is expected to increase to make the systems and services the market. Furthermore, utilization competition soon as well as facilitate more affordable and consequently of LiDARs for rail data capture, the utilization of airborne LiDAR more accessible to a broad range emerging applications of LiDAR system for varied applications, of end users. In terms of revenue, sensor, and innovations in LiDAR including forestry management the airborne LiDAR system market technology are expected to create and planning, flood modelling, generated $732.4 million in the lucrative opportunities for the market pollution modelling, mapping year 2016, including systems and in the coming years. Each of these and cartography, urban planning, services. factors has a definite impact on the coastline management, and growth of the market. transport planning, among others. Once a niche market, the airborne Utilization of LiDARs for capturing LiDAR technology has now become The airborne LiDAR system market rail data, emerging applications of a novel solution for geospatial has witnessed a high growth rate LiDAR sensor, and innovations in data acquisition. The basis of this owing to significant demand for LiDAR technology are the major development is the ability of airborne airborne imaging systems across factors which are expected to create LiDAR system to measure directly the globe, owing to the technical lucrative opportunities for the market the 3D structures using active superiority of LiDARs as compared players in the next five years. The sensors. Studies have shown that to conventional sensors, such market is filled with advancements airborne LiDAR system can provide as radar and camera, and rise in airborne LiDAR system for ground high-resolution geospatial data for in the demand for miniaturized navigation and traffic management. multi-resource management. The Micro-Elector Mechanical Systems data acquired through airborne Spotlight on Indian Electronics 2018-19 | 108

LiDAR High demand for airborne imaging demand for miniaturized Micro-Elector players in the next five years. The marketsystems worldwide, superiority of LiDARs Mechanical Systems (MEMS) sensors. The is filled with advancements in airborneas compared to conventional sensors, recent innovations in LiDAR equipment LiDAR system for ground navigationand rise in the demand for miniaturized and services enable the airborne LiDAR and traffic management. The airborneMicro-Elector Mechanical Systems (MEMS) technology to reach a wider segment of mapping industry is currently witnessingsensors are driving the growth of the consumers in the industry. The companies rapid growth in the deployment of airbornemarket. Moreover, high price of LiDARs are developing relatively low-cost, compact, LiDAR systems for earth science andand complex design and development and lightweight airborne LiDAR systems, forestry applications. Upcoming airborneof LiDARs act as the major challenges to which facilitate the enhanced remote mapping technologies, combined withthe growth of the market. Furthermore, sensing services as compared to the LiDARs, are displacing traditional methodsutilization of LiDARs for rail data capture, traditional technologies. This, in effect, is of controlling and monitoring in groundemerging applications of LiDAR sensor, expected to increase competition soon as mapping services. The major focus of theand innovations in LiDAR technology are well as facilitate the utilization of airborne airborne mapping industry is to make theexpected to create lucrative opportunities LiDAR system for varied applications, systems and services more affordable andfor the market in the coming years. Each of including forestry management and consequently more accessible to a broadthese factors has a definite impact on the planning, flood modelling, pollution range of end users. In terms of revenue, thegrowth of the market. modelling, mapping and cartography, airborne LiDAR system market generated urban planning, coastline management, $732.4 million in the year 2016, includingThe airborne LiDAR system market has and transport planning, among others. systems and services.witnessed a high growth rate owing to Utilization of LiDARs for capturing rail data,significant demand for airborne imaging emerging applications of LiDAR sensor, Once a niche market, the airborne LiDARsystems across the globe, owing to and innovations in LiDAR technology are technology has now become a novelthe technical superiority of LiDARs as the major factors which are expected to solution for geospatial data acquisition.compared to conventional sensors, such create lucrative opportunities for the market The basis of this development is the abilityas radar and camera, and rise in the of airborne LiDAR system to measureGlobal Airborne LiDAR System Market Global Airborne LiDAR system market analysis by platform Spotlight on Indian Electronics 2018-19 | 109

High Priority Market | Aerospace & Defenceof airborne LiDAR system to measure directly region are also keen on developing airborne Global Light Weapons Market analysis by typethe 3D structures using active sensors. Studies LiDAR system for the emerging applications forhave shown that airborne LiDAR system varied end users, thus, boosting the utilization of increasing among different end-users acrosscan provide high-resolution geospatial data airborne LiDAR system for commercial usage. the globe. The market is driven by severalfor multi-resource management. The data Europe is expected to witness the highest factors, such as increasing terrorist incidents,acquired through airborne LiDAR system is growth rate in the market, mainly driven by rising instability in Middle-East and Africa, andreliable and accurate, thus, can be utilized for heavy investment by the leading players in the military modernization programs, among others.the development of national guidelines and market, including RIEGL Laser Measurementstandards in different domains. In combination Systems GmbH, SABRE Advanced 3D Some of the key players in the light weapons marketwith simultaneously acquiring aerial imagery Surveying Systems Ltd., and Leica Geosystems include: Lockheed Martin, Orbital ATK, Raytheon,and data points, airborne LiDAR system is an AG in developing enhanced and cost-effective General Dynamics, BAE Systems, FN Herstal, Hecklerextremely prevailing system which supports airborne LiDAR systems for UAVs. and Koch, Thales Group, Saab AB, Rafael Advancedwide range of applications. However, there Global Light Weapons Market Defense Systems, Elbit Systems, among others.are several market factors that will define the The demand for light weapons is swiftlydynamics of the airborne LiDAR system industry increasing among different end-users across Global Undersea Warfarein the next five years. the globe. The market is driven by several Systems Market factors, such as increasing terrorist incidents,Velodyne LiDAR, Inc., RIEGL Laser rising instability in Middle-East and Africa, The global undersea warfare systems marketMeasurement Systems GmbH, YellowScan and military modernization programs, among is expected to reach over $11,393.6 million bySAS, Trimble Inc., Leica Geosystems AG, others. The light weapons market accounted 2021. Owing to the rising defense spendingPhoenix LiDAR Systems LLC, and LeddarTech for a market value of $10.21 billion in 2016, with to strengthen the country’s military capabilitiesInc. are some of the major players of the global military end-user holding the highest share. for encountering any kind of enemy attacks,airborne LiDAR system market. The Global light weapons market has exhibited including the threats from underwater attacks, a moderate growth in the recent past. the global undersea warfare systems marketthus, can be utilized for the development of Usage of light weapons in armed forces has is expected to grow significantly at a CAGR ofnational guidelines and standards in different increased over the years with advancements 6.6% during the forecast period 2017-2021.domains. In combination with simultaneously in technology. The increasing land disputesacquiring aerial imagery and data points, across the borders, rise in conflicts, and The global undersea warfare systems marketairborne LiDAR system is an extremely terrorism activities and rising defense spending is expected to witness a significant growthprevailing system which supports wide range are the factors for the growth of global light over the forecast period 2017-2021 due toof applications. However, there are several weapons market. Furthermore, low cost, the rising number of underwater threats.market factors that will define the dynamics of lethality, portability, and simplicity of weapons These systems are able to detect, trackthe airborne LiDAR system industry in the next have increased their adoption in armed forces and classify any upcoming danger from anfive years. as well as civilians. The demand for light unidentified submarine, torpedo attacks, and weapons has experienced a significant rise in lethal sea mine. The Undersea warfare systemVelodyne LiDAR, Inc., RIEGL Laser the recent years, and the trend is anticipated manufacturers are developing advancedMeasurement Systems GmbH, YellowScan to continue in the future, owing to the changing underwater technologies to counter underwaterSAS, Trimble Inc., Leica Geosystems AG, nature of warfare and growing conflicts threats. There has been the emergence ofPhoenix LiDAR Systems LLC, and LeddarTech across the globe. The rise in demand of light the unmanned underwater systems which isInc. are some of the major players of the global weapons across emerging nations and military impacting the market with the high adoptionairborne LiDAR system market. modernization programs are expected to open across the globe. In addition, the global several new opportunities for light weapons undersea warfare systems market is significantlyThe preceding figure shows the market market in the years to come. growing due to the high defense spendinganalysis by different platforms. UAV platform Cold-war period led to the major developments across various countries. This high scale growthhad the highest market penetration rate in in the weapons technology due to rising of the undersea warfare systems industry isthe overall airborne LiDAR system market in tensions of large-scale conflict between USSR subsequently influencing the market, therefore2016, followed by aircraft and satellite, mainly and the U.S. The period witnessed a huge new advanced underwater technologies aredue to the maximum number of airborne proliferation in all types of weapons ranging being developed. The adoption of the underseaLiDAR systems being deployed in drones for from nuclear to light ones. The advancements in warfare systems in order to protect the countrycommercial end-user, along with the increased from rising enemy attacks is one of the keynumber of emerging start-ups in the UAV Global Light Weapons Market drivers for the growth of the global underseamarket. Companies operating in the market warfare systems market.are specifically designing airborne LiDAR technology has also led to the development ofsystems for small drones, which are light portable weapons. The portable weapons are Moreover, continuous improvements inweight and cost-efficient. There is an increase generally small arms and light weapons which the underwater technologies as well asin the number of manufacturers in the market, are easy to operate, cost-effective, and durable. the technological development of airbornemainly due to reliable, precise, and outstanding The demand for light weapons is swiftly detection systems is providing an opportunityoutputs of airborne LiDAR system equipped for the growth of the global undersea warfareUAV aerial mapping systems. systems market. There are mainly five types of undersea warfare systems that includeThe demand for airborne LiDAR system across weapons & countermeasures, unmanneddifferent geographies soon is expected to underwater systems, sensors & sonars,be promising, with North America havingthe highest market share during the period2016-2021, followed by Asia-Pacific, Europe,and Rest of the World. North America isexpected to maintain its dominance throughthe forecast period, with the maximum numberof airborne LiDAR systems deployed indrones for commercial end-user in the region.Furthermore, the emerging start-ups in the Spotlight on Indian Electronics 2018-19 | 110

High Priority Market | Aerospace & Defencecommunication systems, and airborne ATLAS ELEKTRONIK GmbH, BAE Systems facilitate services almost equivalent to thedetection systems. In addition to this, themarket of the airborne detection systems plc., ECA Group, General Dynamics, Harris traditional big satellites that serve governmentalis expected to have the highest growth rateduring the forecast period 2017-2021 due to Corporation, Kongsberg Gruppen, Leonardo, agencies or public sector industries. Thethe high demand across Asia-Pacific region. Byanalysis, the global undersea warfare systems Lockheed Martin, Northrop Grumman, market of small satellites is expected to showmarket generated revenue approximately$8,257.9 million, in 2016 and is estimated to Raytheon Company, S.A. de Electronica robust growth rate due to increasing rategrow at a CAGR of 6.6% during 2017-2021.North America is expected to acquire the most Submarina (SAES), Saab AB, Thales Group, of investments in the space industry by therevenue in the global undersea warfare systemsmarket by 2021 with the U.S. acquiring the most Boeing and Ultra Electronics, among others government organizations. A major advantagemarket share, globally. However, Asia-Pacific isexpected to have the highest growth rate during are the major players of the global undersea with small satellites is that they allow businessthe forecast period 2017-2021. warfare systems market. & scientific establishments, educational Global Undersea Warfare Systems Market Global Small Satellites Market institutions, non-spacefaring states, non-profitVarious nations are procuring submarines and organizations, and even individuals an easyanti-submarine warfare frigates which further The small satellites market reported a revenue access to space. However, there are severalincreases the demand for undersea warfare of $2,528.1 million in 2016, and the government market factors that will define the dynamics ofsystems which are required for these platforms end user is expected to generate the highest the small satellites industry in the next five years.in support of carrying out their operations. revenue by 2021.Therefore, the rising defense spending is one of Advancements in satellite miniaturization,the biggest driver that is impacting the growth The small satellites market has witnessed a increasing capability of electronic technology,of the global undersea warfare systems market. high growth rate owing to the advancements ascending demand for small satelliteThe global undersea warfare systems market in satellite miniaturization, increasing capability constellations, and increase in the deploymentis expected to reach over $11,393.6 million by of electronic technology, ascending demand of small satellites for commercial end users are2021. Owing to the rising defense spending for small satellite constellations, and increase driving the growth of the market. In additionto strengthen the country’s military capabilities in the deployment of small satellites for to this, developing safe, low-cost, and smallfor encountering any kind of enemy attacks, commercial end users. Recent innovations payload satellite to launch beyond low-earthincluding the threats from underwater attacks, in small satellite subsystems have enabled orbit, clean-up and removal of space debristhe global undersea warfare systems market them to reach a wider segment of consumers act as the major challenges to the market.is expected to grow significantly at a CAGR of in the satellite industry. The companies are Furthermore, increasing market penetration of6.6% during the forecast period 2017-2021. developing relatively low-cost small satellites, small satellites into disaster management - anThe global undersea warfare systems market i.e., small satellites, which facilitate services emerging small satellite application, nationsmajorly focuses on the types that include almost equivalent to the traditional big satellites developing their own Global Navigation Satelliteweapons & countermeasures, unmanned that serve government agencies or public System (GNSS), advancements in small satelliteunderwater systems, sensors & sonars, sector industries. This, in effect, is expectedcommunication systems, and airbornedetection systems. The weapons and counter to increase competition inmeasures acquired the highest marketshare, in 2017 and is estimated to continue the near future as well asits dominance till 2021. The reason for suchstrong market share is attributed to the high facilitate the utilization of smallcost of weapon and countermeasure systemsas compared with the other undersea warfare satellites for varied applications.systems. However, the market of the unmannedunderwater systems is estimated to grow with Increasing market penetrationthe highest CAGR, during the forecast period2017-2021 due to the advancements in the of small satellites into disasterunderwater technologies.North America is expected to dominate the management - an emergingglobal undersea warfare systems market,however, Asia-Pacific is expected to grow with small satellite application,the highest CAGR, during 2016-2021. nations developing their own Global Navigation Satellite System (GNSS), advancements Global Small Satellites Market analysis by end user in small satellite structure, and rise in the requirement of cost effective structure, and increase in the requirement of low launching sites for small launch vehicles are cost launching sites for small launch vehicles the major factors which are expected to create are expected to create lucrative opportunities for lucrative opportunities for the market in the the market in the coming years. Each of these next five years. In terms of revenue, the small factors has a definite impact on the growth of satellites market generated $2,528.1 million in the market. The small satellites market reported the year 2016. a revenue of $2,528.1 million in 2016, and the government end user is expected to generate Over the last few years, large number of the highest revenue by 2021. companies have entered the satellite industry, Clyde Space Ltd., Space Systems/Loral, motivated by the significant reduction of LLC, Surrey Satellite Technology Ltd., Tyvak manufacturing cost due to invention of small Nano-Satellite Systems, Inc., Israel Aerospace satellites. Globally, companies are developing Industries Ltd., Lockheed Martin Corporation, relatively inexpensive small satellites, which OHB SE, and Orbital ATK, Inc. are some of the major players of the small satellites market. Global Small Satellites Market As represented by the preceding figure, government end user had the highest market penetration rate in the overall small satellites market in 2016, followed by commercial, academic, and defense. The commercial end user is expected to witness a high growth rate owing to increasing research and development (R&D) activities to develop small satellite constellation for varied applications such as navigation, provision of global wireless internet Spotlight on Indian Electronics 2018-19 | 111

High Priority Market | Aerospace & Defencesystem, and telecommunication, among others. detection systems, is providing the opportunity vessels. However, there are certain restraining for the growth of the global airborne detection factors such as the rigorous development ofThe demand for small satellites across different systems for submarines market. There are extremely silent submarines that are becominggeographies in the near future is expected to mainly four types of airborne detection systems difficult to detect the underwater environmentalbe promising, with North America having the for submarines that include sonobuoys, threats due to use of sonars in most of thehighest market share during the period 2016- dipping sonars, radars, and magnetic anomaly sensitive areas of the sea.2021, followed by Asia-Pacific, Europe, and detection systems. In addition to this, dippingRest of the World. sonars segment is expected to have the highest The global airborne detection systems for growth rate during the forecast period 2017- submarines market is expected to reachIn addition to this, the emerging start-ups in the 2026 due to the higher chances of submarine $1,157.6 million by 2026. Owing to theregion are also keen to develop small satellites detection as compared with other detection increasing demand for submarines as wellfor the emerging applications for varied end systems. By analysis, global airborne detection as the development of advanced airborneusers, thus, boosting the utilization of small systems for submarines market generated detection systems, the market of global airbornesatellites for commercial and academic. a revenue of $560.0 million in 2016 and is detection systems for submarines is expectedMoreover, Europe is expected to witness the estimated to grow at a CAGR of 7.5% during to show moderate growth rate and is estimatedhighest growth rate in the market, mainly driven 2016-2026. North America generated most to grow at a CAGR of 7.5% during 2016-2026.because of heavy ongoing investments by of the revenue in airborne detection systems The global airborne detection systems forgovernment in the region to develop enhanced for submarines market in 2016 with the U.S. submarines market majorly focuses on thesmall satellite subsystems, such as solar acquiring most of the market share, globally. types that include sonobuoys, dipping sonars,electric propulsion system, laser communication However, Asia-Pacific is expected to have the radars and magnetic anomaly detectionsystem, and many more, for safety & security, highest growth rate including India, growing at systems. The sonobuoys acquired the highestnavigation, and communication applications. the highest CAGR during the forecast period market value in 2016 and is growing at a CAGR 2017-2026. of 7.9%. The reason for such strong marketGlobal Airborne Detection Systems Submarines are the most powerful and share is attributed to the advantages of itsfor Submarines Market high-technology underwater vessels in better cost efficiency as compared to the other the world. These vessels are used for airborne detection systems for submarines andThe global airborne detection systems for performing undersea stealth operations such higher volume demand from the end-userssubmarines market is expected to reach as intelligence, surveillance and launching as these systems can’t be recovered post$1,157.6 million by 2026. Owing to the completion of the operation. Moreover, dippingincreasing demand for submarines as well as Global Airborne Detection Systems for Submarines sonars segment is estimated to grow with thedevelopment of advanced airborne detection highest CAGR of 8.3% during 2016-2026 due tosystems, the market of global airborne detection torpedoes to attack other underwater objects. advancements in the sonar technology.systems for submarines is expected to show Moreover, submarines are quiet whilemoderate growth rate and is estimated to grow performing such operations and pose threats North America dominated the market in 2016at the CAGR of 7.5% during 2016-2026. to the naval forces of other countries. Thus and is growing at a CAGR of 6.9% during the arises the need for the systems that can detect forecast period. Asia-Pacific is expected to growSubmarines are one of the most powerful the presence of submarines through multiple at the highest CAGR of 9.5% during 2016-2026.underwater systems that have been used by platforms. Airborne platforms proved to be the Kongsberg Gruppen, L3 Ocean systems, BAEthe naval forces in order to carry out distinct most beneficial way of detecting and tracking Systems, Lockheed Martin Corporation, Saab,stealth operations. These vessels can be submerged submarines. Airborne detection Atlas Elektronik Gmbh, Northrop Grummanused against the forces of the other nations to systems could cover a larger area as compared Corporation, Ultra Electronics, Thales Group,perform sensitive missions quietly that pose to other platforms and thus, enhance the Raytheon Inc. and General Dynamics, amongnumerous undersea threats. Therefore, it chances of submarine detection. others, are some of the major players ofbecomes necessary for the countries to protect There have been numerous developments by the global airborne detection systems fortheir nations from such underwater threats. the submarine manufacturers in the field of submarines market.This gives rise to the development of systems airborne detection systems for submarines.that can detect and track enemy submarines Manufacturers are also collaborating with other The Asia-Pacific region is expected to growthrough airborne platforms. Airborne detection companies in order to geographically expand at the highest CAGR during the forecastsystems for submarines have better advantages their product offerings across different regions period 2017-2026. India is expected to showover other platform detection systems. of the globe. Furthermore, manufacturers have the highest growth rate in airborne detectionDetecting submarine through airborne platforms received various contracts from naval forces of systems for submarines market, globally. Thesuch as helicopters and fixed-wings is highly different nations for the procurement of specific Asia-Pacific region could provide a lot moreefficient as it enables wider coverage area for airborne detection systems for submarines. opportunities to the new entrants in the market.submarine detection. Moreover, it also offers The global airborne detection systems forbetter safety while performing such operations. submarines market is growing moderately Global Air-Independent Propulsion (AIP) with the increasing defense budget of various Systems for Submarines MarketThis high scale growth of airborne detection nations as well as rising threats from underwatersystems for submarines industry is The market of AIP systems is expected to showsubsequently influencing the market, wherein robust growth due to increasing need for safenew technologies of airborne detection and secure underwater military operations andsystems for submarines are being developed. demand for submarine modernization plans byThe increasing defense budget of several the naval forces.countries across the globe and underwaterthreats due to growing wars and conflicts Submarines are the most powerful vesselamong the neighboring nations are the key for performing underwater stealth operationsdrivers for its increased adoption by the naval such as anti-submarine warfare. During suchforces. Globally, the defense spending of all the secretive activities, submarines need to be silentcountries is increasing annually which is a part in order to remain undetected from the enemyof defense modernization program adopted for forces. Propulsion system plays an extremelystrengthening their military forces. important role in the functioning of a submarine for the completion of its desired operations.Moreover, growing submarine fleet, as well Majorly nuclear submarines are used dueas the development of advanced airborne Spotlight on Indian Electronics 2018-19 | 112

High Priority Market | Aerospace & Defenceto their capability of performing extended need to get back to the water surface to get submarines, globally.operations. These propulsion system equipped fresh oxygen in order to run their engines.submarines are expensive and generate a Once the batteries are recharged, submarines Europe is another leading region forhigh level of noise which becomes a major dive into the ocean and silently perform the implementing AIP technology into conventionalthreat. Therefore, diesel-electric submarines operations on battery power independent of submarines. The European region majorlyare used by several countries as they are silent the diesel generators. This whole process consists of Germany, Sweden, Greece, Italy,and suitable for performing activities in littoral of recharging submarine batteries exposes Russia, Spain and Portugal in the AIP systemssurfaces. Diesel-electric submarines have to them to the enemy forces and increases the market. Moreover, there are ample opportunitiesget back on the surface to get fresh oxygen in chances of being detected. Therefore, there for the new entrants in this region, as theorder to recharge their batteries through diesel has been a continuous development towards demand for AIP technology is increasingengines. This exposes such conventional increasing underwater endurance of diesel- for conventional submarines to enhancesubmarines to the enemy radars and increases electric submarines. As a result of which, their endurance. Furthermore, Middle-Eastthe chances of getting attacked. air-independent propulsion systems have been has recently showed its interest towards theAir-independent Propulsion systems have developed. These propulsion systems help procurement of AIP systems for submarines.been developed to solve the problem of submarines to remain submerged without the Turkey is the most prominent nation in Middle-getting the fresh oxygen from atmosphere. need for fresh oxygen, thus, increasing their East that is keen to adopt the technology inThe AIP systems installed in the conventional endurance. With various forms of innovations in submarines during the forecast period.submarines increases their underwater the field of AIP technology, advanced systemsendurance and help them to avoid the need are being developed that are extremely efficient Mobile User Objective System for Militaryfor resurfacing frequently. AIP systems permit and are cost-effective as well. Communication Satellitediesel-electric submarines to recharge theirbatteries independent of their engines. Based on the on-going developments in the Military satellites have gained significance dueAlso, it helps to reduce the noise without field of different AIP technologies, the total to the rise in terrorist attacks and unconventionalcompromising the submarine performance. AIP market size of AIP systems for submarines was warfare. MUOS is the U.S.’s next generationsystems have been in high demand due to their valued at $174.1 million in 2016. The market of communication satellite constellation. It hasincreasing advantages in performing stealth AIP systems is expected to show robust growth been primarily developed by Lockheed Martinunderwater operations. This high scale of due to increasing need for safe and secure for the U.S. military forces to provide improvedgrowth of AIP systems industry is subsequently underwater military operations and demand for and secured communication capabilities.influencing the market, wherein a new range of submarine modernization plans by the navalprograms are being carried out to develop the forces. Space Industry is experiencing a vigorous ratelatest AIP technologies. Globally, technology is of growth over few years due to a rising demandone of the key drivers for its increased adoption Saab, DCNS, ThyssenKrupp Marine Systems, of satellites usage in diverse applications. Thisby the government and the naval forces. There Howaldtswerke-Deutsche Werft (HDW), high scale of growth of the space industry isare mainly four AIP systems that have been Siemens and United Technologies Corporation, subsequently influencing the satellite market,developed including closed cycle engine, among others, are some of the major players of wherein new programs are being carried outclosed cycle steam turbines (MESMA), stirling the AIP systems market. to improve secure communication capabilitiesengines and fuel cells. Out of all the developed particularly for defense agencies. Mobile UserAIP systems, stirling engines and fuel cells There are mainly four AIP systems that have Objective System (MUOS) is one such programAIP systems are expected to grow during the been developed namely: closed cycle diesel started by the U.S. to provide improved andforecast period. By analysis, global AIP systems engine (CCD), autonomous submarine energy secured communication capabilities to itsmarket generated a revenue of $174.1 million module (MESMA), stirling engine and fuel cells. armed forces. An impending need of thein 2016. Out of all the AIP systems, stirling engine and safe, secure and large coverage are someSubmarines have become the major weapon fuel cell AIP modules are the most prominent of the major drivers for MUOS. MUOS alsofor naval warfare for carrying out sensitive systems that have been used in 2016 and is help in tracking the movement of soldiers asundersea operations. There have been multiple estimated to witness the higher demand during well as enemies. The information gatheredefforts towards the development of more the forecast period 2017-2026. The fuel cell by the soldiers can be sent anywhere in thepowerful and quieter submarines that could module market for AIP systems is estimated world using military satellite communications.help in eliminating the risk of being tracked to generate the highest revenue during the There are different types of satellites and eachby the enemy radars. Conventional diesel- forecast period. satellite is equipped with different payloads to perform various missions. MUOS satelliteGlobal Air-Independent Propulsion (AIP) Systems Market The AIP systems can be installed in submarines system consists of space segment and ground by two ways namely, line fit and retro fit. Retro segment. The space segment of MUOS iselectric submarines produce lesser noise as fitting an AIP system into an old conventional composed of satellites in space, while thecompared to the nuclear submarines as they submarine is a complex task as compared ground segment includes ground stations,run on battery charge through electric engines. to equipping AIP systems into the submarine communication devices, and control facilities.However, these submarines face some of the during its construction. Therefore, line fit AIPchallenges related to the storage of batteries. systems into submarines is expected to have Space industry has been rapidly growingFor recharging their batteries, submarines the highest demand as compared to retro fit owing to its increased utilization in military and during the forecast period 2017-2026. non-military applications. The investments in space arena has increased over the years that Asia-Pacific is expected to have the highest is significantly contributing to the growth of the market during the forecast period (2017-2026), space industry. Satellites are also increasingly followed by Europe and Middle-East. The being adopted by the military forces, and increase in the demand for AIP systems in governments are extensively investing in space- Asia-Pacific is due to the adoption of military based systems for military applications. The modernization by various naval forces and the U.S. is one of the leading countries that invested need for underwater security. Japan, China, $7 billion in the space-based systems in 2016, India, Australia, Thailand, Singapore and South and it is expected to reach $8 billion by 2020 Korea are some of the prominent nations for due to the emerging threats from Russia and the development of AIP systems. Moreover, China. Mobile User Objective System (MUOS) China holds the largest fleet of AIP equipped is one such satellite constellation that provides Spotlight on Indian Electronics 2018-19 | 113

High Priority Market | Aerospace & Defencecommunication facilities to the U.S forces and industry is subsequently influencing the small in the market, lack of dedicated launch sites,its allies. It is a narrowband military satellite launch vehicle market, wherein a new range and high ground operational costs. However,communication network that is designed to of programs are being carried out to develop major space faring organizations are aiming toprovide increased levels of systems availability latest small launch vehicle technologies. The build their own launch sites, and to provide costin comparison with existing growing demand of small satellite constellations effective solutions to major SLV manufacturers. for satellite applications, such as remote Furthermore, technological advancementsUltra High Frequency (UHF) Follow- sensing, navigation, communication, and in propulsion system and structure as wellOn satellite constellation. earth observation is the major factor driving the growth of small launch vehicle Global Small Launch Vehicle Market by Payload RangeFrom 2010-2014, there was a considerable market. Moreover, significant increase inincrease in spacecraft launches and the trend investment of large space organization as integral parts of SLVs, is expected tois likely to continue in the coming years. This in developing small launch vehicles is significantly reduce manufacturing cost, size,increase is the result of rising demand for expected to boost the growth of the market and complexity. EUROCKOT Launch Servicesmobile satellite services, emergence of new during the forecast period, 2017-2026. GmbH, IHI Corporation, Israel Aerospacesatellite operators, and the growing number of Furthermore, companies and space Industries Ltd., Lockheed Martin Corporation,commercial satellite orders. organizations are conducting research Rocket Lab USA, Inc., and Orbital ATK, Inc. activities to develop reusable small launch are some of the major players of small launchThere are different types of satellites and each vehicles. This will significantly increase vehicle market.satellite is equipped with different payloads the frequency of launches and reduce The small launch vehicle market is witnessingto perform various missions. MUOS satellite the launch price, thus, creating a lucrative a high growth rate owing to increase insystem consists of space segment and ground opportunity for the market in coming years. In deployment of small satellites for commercialsegment. The space segment of MUOS is terms of revenue, small launch vehicle market end users, surge in demand for small satellitecomposed of satellites in space, while the generated $166.3 million in the year 2016. constellations, and significant increase inground segment includes ground stations, Small launch vehicles market is witnessing investment of large space organization incommunication devices, and control facilities. a high rate of demand in the space industry developing small launch vehicles. RecentSpace segment of MUOS includes the bus and owing to increase in the capabilities of small innovations in launch vehicle componentsa communication payload. A modern satellite satellites, specifically for commercial and and services has enabled the small launchbus includes thermal, structural, attitude control, academic end users. The space industry is vehicle technology to reach a wider segment ofpower, propulsion and telemetry, tracking and gradually developing their strategic utility, thus, consumers in the industry. However, reductioncommand subsystems (TT&C). There is a wide motivating various stakeholders including in the selling price of small launch vehicles andrange of opportunities for the number of the governments, space agencies, and private developing a dedicated and low cost launchingplayers in the space segment as the U.S. allies companies to develop dedicated and next- site for small launch vehicles, contribute asare working on the development of sixth MUOS generation small satellite launch vehicles. major challenges for the market. Companiessatellite. This development is likely to create Presently, small satellites are being increasingly are developing various forms of emergingopportunities for the payload, subsystems technologies such as 3D printed electronicmanufacturers as well as the for the system Global Small Launch Vehicle Market components and structure, air breathingintegrator. propulsion system, electronic propulsion used for weather forecast, surveillance, earth system, and reusable launch vehicles, amongMUOS constellation also provides a observation, navigation, communication, others, to develop cost effective SLVs. This, inwide range of opportunities for other meteorology, and other purposes. Of late, effect, is expected to increase competition incountries. The allied nations who share other missions like human space exploration the near future as well as facilitate the utilizationintelligence and satellite services with activities or development of new space of small launch vehicle for small satellite spacethe US and also that are into agreement stations have also created a demand for high missions. The small launch vehicle marketwith the U.S. to purchase Joint Strike frequency of launches. Hence, there has been reported a revenue of $166.3 million in 2016,Fighter will be the first ones to access a growing interest among researchers and the with 200 kg – 500 kg payload range segmentMUOS WCDMA capability. Australia, scientific community to design and develop accommodating for the highest revenue byCanada, Denmark, Italy, Japan, the launch vehicles capable of multiple launches 2026.Netherlands, Norway, South Korea, and positioning small satellites into different The 500 kg – 1,200 kg payload rangeTurkey and the United Kingdom are the orbits at low cost. Furthermore, the challenges contributed the largest share to the smallallied nations that will take benefit of faced by small satellite manufacturers during launch vehicle market, owing to substantialimproved and secured communication launch through heavy vehicles is escalating number of companies in space industry.capabilities. the demand for development of small launch Some of the active players offering SLVs in this vehicles dedicated for launching small satellites. payload range are IHI Corporation, The BoeingLockheed Martin, General Dynamics, Harris Currently, the launching price of SLVs is higher Company, Lockheed Martin Corporation, OrbitalCorporation, Boeing Satellite Systems, Northrop as compared to conventional launch vehicles, ATK, Inc., and Mitsubishi Heavy Industries,Grumman and Ericsson are some of the mainly due to low rate of availability of SLVs Ltd. However, 50 kg – 200 kg payload rangeprominent players of MUOS. is expected to witness highest growth rate inGlobal Small Launch Vehicle MarketThe small launch vehicle market is witnessinga high growth rate owing to increase indeployment of small satellites for commercialend users, surge in demand for small satelliteconstellations, and significant increase ininvestment of large space organization indeveloping small launch vehicles.The small launch vehicle market is experiencingan advanced rate of growth over the pastcouple of years due to the increasing demandof small satellite applications in commercial,defense & military, and government endusers. This high scale of growth of the space Spotlight on Indian Electronics 2018-19 | 114

High Priority Market | Aerospace & Defencethe market. The growth of the payload range is satellite constellations for satellite applications, for the market is the next five years. Majormainly driven by rise in launch of small satellites such as remote sensing, navigation, government space organizations worldwide, arefor the development of distributed systems communication, and earth observation is the continuously increasing their funding in spaceor constellations of small satellites for varied major factor driving the growth of nano satellite industry to develop efficient and cost effectivecommercial applications. market. Moreover, continuous advancements satellite solution. The satellite industry isThe future demand for small launch vehicles in electronic satellite equipment, for instance, witnessing rapid growth in the number of smallacross different geographies is expected to 3D printed electronic circuitry for nano satellite satellites, specifically nano satellites, for hugebe promising, with Asia-Pacific having the equipment, is expected to boost the growth of satellite constellations consisting of hundreds ofhighest market share during the forecast period the market during the forecast period, 2017- satellites for applications like earth observation(2016-2026), followed by Rest of the World 2021. In terms of revenue, nano satellite market and telecommunications.(RoW), North America, and Europe. Increased generated $127.20 million in the year 2016.spending in the small launch industry by Nano satellite have emerged to be a powerful As the figure shows, the market for governmentgovernment space organizations in the region tool for commercial, defense, government, and end user is expected to consume the highestsuch as Japan Aerospace Exploration Agency, academic end users for satellite applications share of the market, through the forecastKorean Committee of Space Technology, China such as remote sensing, communication, period, 2017-2021. However, commercial endAcademy of Launch Vehicle Technology, and earth observation, surveillance, scientific user is expected to foster the highest growthIndian Space Research Organization (ISRO), research, and navigation, among other. The in the market, owing to the the increase inis expected to maintain the Asia-Pacific’s satellite market has been constantly evolving development and utilization of nano satellitedominance in the market throughout the at a rapid pace, with an impending need for constellations for satellite applications suchforecast period. North America is expected satellite miniaturization and cost effectiveness, as communication, remote sensing, earthto foster high growth rate in the market with sustained capabilities, as conventional observation, and navigation by commercialduring the forecast period, owing to constant industries like IT & telecommunication,developments in launch vehicle technologies Global Nano Satellite Market agriculture, mining, and oil & gas, amongby the government space organizations and others.companies, which are focusing on developing big satellites. Nano satellite, in particular, isinnovation in space technology to transform emerging as a promising market in the small The demand for nano satellites acrosscommercial space missions. Furthermore, there satellite industry. The term Nano Satellite, different geographies is expected to be veryare several prominent start-up manufacturers also known as NanoSat, was introduced by promising, with North America having thethat are engaging in the development of new National Aeronautics and Space Administration highest market share during the forecastsystem technologies to expand the capabilities (NASA) in 2004. The invention was to facilitate period (2016-2021), followed by Europe,of space mission, thus, contributing to the development of small satellites for academic Asia-Pacific, Europe, and the Rest of thegrowth of the market in the region. research and space science by universities World (RoW). Investment and developmentGlobal Nano Satellite Market and educational institutes. The market of nano by government as well as companies inThe demand for nano satellites is globally satellite is expected to show robust growth developing countries enhanced nano satelliteexpected to increase during the forecast period due to increasing rate of investments in space subsystems, such as solar electric propulsiondue to advancements in satellite miniaturization, industry by the government organizations. system, laser communication system, andincreasing capability of electronic technology, Israel Aerospace Industries Ltd., Lockheed many more, is expected to boost the growth ofand ascending demand for small satellite Martin Corporation, NanoAvionika, LLC, North America nano satellite market in the nextconstellations. Northrop Grumman Corporation, OHB SE, five years. The U.S. is expected to dominateThe nano satellite market reported a revenue of Orbital ATK, Inc., and Planet Labs, Inc. are the market during the forecast period (2017-$127.20 million in 2016, with government end some of the major players of nano satellite 2021), owing to NASA pursuing developmentuser segment accommodating for the highest market. of new subsystem technologies to expandrevenue by 2021. The nano satellite market is The demand for nano satellites is globally the capabilities of small satellites. Germanyexperiencing an advanced rate of growth over expected to increase during the forecast period is one of the prominent countries in Europe,the past couple of years due to the increasing due to advancements in satellite miniaturization, which has been significantly involved in spacedemand of satellite applications in commercial, increasing capability of electronic technology, missions, enabled through uninterrupteddefense & military, and government end users. and ascending demand for small satellite development and growing importance, forThis high scale of growth of the space industry constellations. Furthermore, developing safe, varied satellite applications such as weatheris subsequently influencing nano satellite low-cost, & small payload nano satellite to forecasting, communications, TV transmissionmarket, wherein a new range of programs are launch beyond low-earth orbit and clean- and navigation. The Asia-Pacific region majorlybeing carried out to develop latest nano satellite up & removal of space debris, are biggest consists of China, Japan, India, and South challenges currently faced by the market. Korea, among others in the nano satellite Global Nano Satellite Market Moreover, nano satellites being deployed for market. The countries in the region are emerging satellite application like disaster experiencing a trend of extensive investmenttechnologies. The growing demand of small management and nations developing their in all forms of advanced space technologies. own global navigation satellite system (GNSS), China’s keenness in developing their own are expected to create lucrative opportunities space station and efforts in building space based global navigational system, Beidou, is expected to foster high growth of nano satellite market in the Asia-Pacific region. Spotlight on Indian Electronics 2018-19 | 115

AutomobileHighPriorityMarket|AutomobileIndustry in IndiaThe automobile industry in India is world’s fourth largest, with the country currently being the world’s seventh largest The government aims to develop India as a global manufacturing as commercial vehicle manufacturer. Indian automotive well as a research and development (R&D) hub. It has set up National industry (including component manufacturing) is expected Automotive Testing and R&D Infrastructure Project (NATRiP) centres as to reach Rs. 16.16 -18.18 trillion (US$ 251.4 - 282.8 billion) well as a National Automotive Board to act as facilitator between theby 2026. Two-wheelers dominate the industry and had a 79 per cent government and the industry. The Indian government has also set up anshare in the automobile production in FY17. Sales of cars, utility vehicles ambitious target of having only electric vehicles being sold in the country.and vans grew 8.85 per cent during calendar year 2017. Automobileexports from India increased 15.81 per cent year-on-year in April- Alternative fuel has the potential to provide for the country’s energyFebruary 2017-18. Indian automobile industry has received Foreign demand in the auto sector as the CNG distribution network in India isDirect Investments (FDI) worth US$ 18.41 billion between April 2000 and expected to rise to 250 cities in 2018 from 125 cities in 2014. Also, theDecember 2017. luxury car market could register high growth and is expected to reachThe passenger vehicle sales in India crossed the three million unit 150,000 units by 2020.milestone during FY 2016-17, and is further expected increase to 10million units by FY20.• The automotive manufacturing industrycomprises the production of commer-cial vehicles, passenger cars, and three &two-wheelers.• Two-wheelers are by far the most popularform of vehicle in India, taking an 80%share in 2015-16.• 25 million automobiles produced in FY17.• Total production volume grew at a CAGRof 5.56 per cent between FY12-17.Spotlight on Indian Electronics 2018-19 | 116

High Priority Market | AutomobileIntroduction India’s electric vehicle (EV) sales increased to 25,000 units during FY 2016-17 and are poised to rise further on the back of cheaper energyThe Indian auto industry is one of the largest in the world. The storage costs and the Government of India’s vision to see six millionindustry accounts for 7.1 per cent of the country’s Gross Domestic electric and hybrid vehicles in India by 2020.Product (GDP). The Two Wheelers segment with 80 per cent marketshare is the leader of the Indian Automobile market owing to a growing Investmentsmiddle class and a young population. Moreover, the growing interest ofthe companies in exploring the rural markets further aided the growth of In order to keep up with the growing demand, several auto makers havethe sector. The overall Passenger Vehicle (PV) segment has 14 per cent started investing heavily in various segments of the industry during themarket share. last few months. The industry has attracted Foreign Direct InvestmentIndia is also a prominent auto exporter and has strong export growth (FDI) worth US$ 18.413 billion during the period April 2000 to Decemberexpectations for the near future. Overall automobile exports grew 15.81 2017, according to data released by Department of Industrial Policy andper cent year-on-year between April-February 2017-18. In addition, several Promotion (DIPP).initiatives by the Government of India and the major automobile players inthe Indian market are expected to make India a leader in the 2W and Four Some of the recent/planned investments and developments in the automobile sector in India are as follows:Wheeler (4W) market in the world by 2020. • The only electric automaker in India, Mahindra and Mahindra Ltd,Market Size has partnered with Uber for deploying its electric sedan e-Verito and hatchback e2o Plus on Uber platforms in New Delhi and Hyderabad.Production of passenger vehicles, commercial vehicles, three wheelersand two wheelers grew at 14.41 per cent year-on-year between April- • Mahindra & Mahindra (M & M) is planning to make an additionalFebruary 2017-18 to 26,402,671 vehicles. investment of Rs 500 crore (US$ 77.23 million) for expanding the capacityThe auto industry is set to witness major changes in the form of electric for electric vehicles in its plant in Chakan.vehicles (EVs), shared mobility, Bharat Stage-VI emission and safetynorms. Electric cars in India are expected to get new green number plates Government Initiativesand may also get free parking for three years along with toll waivers. The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route. Some of the recent initiatives taken by the Government of India are -Spotlight on Indian Electronics 2018-19 | 117

High Priority Market | AutomobileFAME Scheme and set up charging infrastructure across Bengaluru. 2. Cumulative FDI inflow of around US$ 18.413 billion in automobiles sector between April 2000 – December 2017• The Ministry of Heavy Industries, Government of India has shortlisted 11 Innovation Opportunitiescities in the country for introduction of electric vehicles (EVs) in their public 1. Focus shifting on electric cars to reduce emissions.transport systems under the FAME (Faster Adoption and Manufacturing of 2. Innovation is likely to intensify among engine technology & alternative(Hybrid) and Electric Vehicles in India) scheme. fuels. 3. Government aims to build India into an R&D hub.• Energy Efficiency Services Limited (EESL), under Ministry for Power and Policy SupportNew and Renewable Energy, Government of India, is planning to procure 1. Automotive Mission Plan: 2016-26 shows clear vision of government.10,000 e-vehicles via demand aggregation, and has already awarded 2. The government aims to develop India as a global manufacturingcontracts to Tata Motors Ltd for 250 e-cars and to Mahindra and Mahindra centre.for 150 e-cars. 3. Reforms like GST to help boost the sector’s growth.• The government is planning to set up a committee to develop an Market Overviewinstitutional framework on large-scale adoption of electric vehicles in Indiaas a viable clean energy mode, especially for shared mass transport, to 1. Two-wheelers and passenger vehicles dominate Indian auto market .help bring down pollution level in major cities. Sales of two-wheelers are expected to grow 8-10 per cent in FY18The automobile industry is supported by various factors such as 2. Overall automobile sales increased 22.77 per cent year-on-year toavailability of skilled labour at low cost, robust R&D centres and low 2,111,383 units in February 2018.cost steel production. The industry also provides great opportunities for 3. Two-wheelers and passenger cars accounted for 79 per cent and 15investment and direct and indirect employment to skilled and unskilled per cent of production volume in FY17 respectively.labour. 4. Domestic passenger car sales are dominated by small and mid-size cars.The Indian automotive aftermarket is estimated to grow at around 10-15 5. Over 67 per cent of export volumes comprised of two-wheelers,per cent to reach US$ 16.5 billion by 2021 from around US$ 7 billion followed by 22 per cent for passenger cars.in 2016. It has the potential to generate up to US$ 300 billion in annual Recent Trendsrevenue by 2026, create 65 million additional jobs and contribute over 12 Luxury Carsper cent to India’s Gross Domestic Product. 1. With sales of around 40,000 luxury cars in 2017, India became the 27th most attractive luxury market in the world. Sale of luxury cars stood atAutomobiles Industry Market Report 33,279 units in 2016. The luxury car market in India is expected to grow at 25 per cent CAGR till 2020. Mercedes-Benz India and BMW Group IndiaIn Brief recorded their highest ever annual sales in 2017 at 15,330 units and 9,800 units respectively.4th largest automobile market 2. With 12th largest population of high net worth individuals (HNIs), India still has huge room for this segment.1. Presence of established domestic and international original equipment New Financing Optionsmanufacturers (OEMs). 1. Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen & Mercedes-Benz have started providing customised finance to customers2. Strong market in terms of both, the domestic demand and exports. through NBFCs 2. Major MNC & Indian corporate houses are moving towards taking cars3. 7th largest manufacturer of commercial vehicles on operating lease instead of buying them 3. New Financing Options4. Growth of 8.85 per cent in sales of cars, utility vehicles and vans during Electric Carscalendar year 2017. 1. The Indian government has shifted its focus on electric cars in order to meet the emission reduction targets.5. Automobile exports to grow at a CAGR of 3.05 per cent during 2016- 2. Mahindra has launched its new electric car and Tesla motors is also set2026. to enter the Indian market. Suzuki Motors is setting up a battery plant in Gujarat. Electric buses from Tata Motors are in testing phase.6. Indian automotive industry (including component manufacturing) is 3. India’s electric vehicle (EV) sales increased to 25,000 units during FYexpected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2016-17 and are poised to rise further on the back of cheaper energy2026. storage costs and the Government of India’s vision to see six million electric and hybrid vehicles in India by 2020.Segmented Market New Product Launches 1. Ashok Leyland is planning to launch couple of light commercial vehicle1. Automobile sector split into four segments , each having few market variants, in every quarter of FY18.leaders.2. Two-wheelers and passenger vehicles dominate the domestic demand.3. Two-wheelers account for 80 per cent of domestic demand.4. Commercial vehicle segment expected to grow at 11.07 per centbetween 2016-26.Positive growth prospects1. Exports grew at 4.3 per cent CAGR between FY12-17.2. Two-wheeler production estimated to grow at 16 per cent CAGRbetween FY17-20.3. Domestic sales of passenger vehicles expected to increase at a CAGRof 12.87 per cent between 2017-264. Strong policy support from governmentAdvantage IndiaGrowing Demand1. Strong growth in demand due to rising income, middle class, and ayoung population.2. Domestics ales of passenger vehicles expected to increase at a CAGRof 12.87 per cent between 2016-26.3. Utility vehicle sales increased 21.34 per cent year-on-year in April-February 2017-18.Rising Investment1. India has significant cost advantages; auto firms save 10-25 per centon operations vis-à-vis Europe & Latin America. Spotlight on Indian Electronics 2018-19 | 118

High Priority Market | Automobile2. In March 2017, Maruti Suzuki launched sector. by FY19Baleno RS, a high performance hatchback carin the hatchback. In September 2017, it brought Policy Support 3. To increase the Chennai Plant capacity toSuzuki’s lubricant and car care brand Ecstar toIndia. 1. Clear vision of Indian government to make 400,000 units a year in a few years time3. SAIC motors is planning to enter the Indian India an auto manufacturing hub. 4. The company plans to launch 8 new carmarket, the first Chinese automotive companyto do so. 2. Initiatives like ‘Make in India’, ‘Automotive models in India by 20214. Auto Expo 2018 witnessed 22 new product Mission Plan 2026’, and NEMMP 2020 to give a Toyota: Toyota is planning to invest US$ 165launches, 81 product unveilings and 18 conceptshowcases. huge boost to the sector. million on its new engine plants and projects.Recent Strategies adopted by companies in Support infrastructure and high investments Hyundai: Plans to invest US$ 1 billion in IndiaIndian Automobiles Sector 1. Improving road infrastructure. by 2020.Capacity Addition 2. Established auto ancillary industry giving the SAIC: Chinese state owned auto major, SAIC1. Considering low cost of production, required support to boost growth. Motor has announced investment of over US$prominent auto companies are increasingtheir production capacity in order to capture a 310 million in India. It isdominant share in Indian automobile industry. expected to start operations2. Most of the automobile companies areeyeing India as an outsourcing hub. in 2019.3. With the total investment of around US$ Mercedes-Benz: Increased163.7 million, Honda Motorcycle & ScooterIndia expanded its production of Activa in three the plant capacity of 20,000variants at Ahmedabad plant. units per year in Chakan4. Volvo has started local assembly of its cars inIndia from October 2017. Source: Society of Indian Automobile Manufacturers (SIAM) Plant, which is the largest for any luxury car manufacturer5. A new engine assembly line is being set upby the Volkswagen group in Aurangabad. 3. 5 per cent of total FDI inflows to India went in India, Expansion of MIDC and MoU, and to into the automobiles sector. invest US$ 244 million for capacity expansion in6. Mahindra & Mahindra (M & M) is planning to Chakan, Pune.make an additional investment of Rs 500 crore Opportunities(US$ 77.23 million) for expanding the capacity Policies and Initiativesfor electric vehicles in its plant in Chakan. India is fast emerging as a global R&D hub Support from the Indian government in theCatering Indian needs 1. Strong support from the government; setting form of new policies and initiatives has been up of NATRIP centres. crucial in development and growth of Indian1. Most of the firms including Ford & automobile sector.Volkswagen have adapted themselves to cater 2. Private players, such as Hyundai, Suzuki,to the large Indian middle class by dropping GM, keen to set up R&D base in India. NATRiPtheir traditional structure and designs. 3. Strong education base, large skilled English- 1. Setting up of R&D centres at a total cost of2. This allows them to compete directly with speaking manpower. US$ 388.5 million to enable the industry to bedomestic firms making the sector highly on par with global standards.competitive. 4. Comparative advantage in terms of cost. 2. Nine R&D centres of excellence with focus onLaunch of new models 5. Firms both national and foreign are low-cost manufacturing & product development increasing their footprints with over 1,165 R&D solutions.1. Honda is planning to launch three new car centres.models in India by 2020 and will localise the Department of Heavy Industries &engines to keep the prices low. Opportunities for creating sizeable Public Enterprises market segments through2. Fiat Chrysler Automobiles India, launched its innovations 1. Worked towards reduction of excise duty onnew Jeep brand Compass in February 2017, small cars and increase budgetary allocation forwhich is going to be produced indigenously in 1. Mahindra & Mahindra targeting on R&DRanjangaon,, Maharashtra. India will be the 4th implementing digital technology in the business.manufacturing hub, globally, for the brand. 2. Weighted increase in R&D expenditure to 200 2. Bajaj Auto, Hero Honda & M&M plan to jointly per cent from 150 per cent (in-house) & 175 per3. In March 2017, Tata Motors’ new sports car develop a technology for 2-wheelers to run on cent from 125 per cent (outsourced).was unveiled, under its new sub brand – TAMO, natural gas.at the Geneva International Motor Show. The The Automotive Mission Plan 2016-26show will displayed niche segment models with 3. Tata Motors to launch MiniCAT, a car running (AMP 2026)advanced technologies on compressed air, 1. AMP 2026 targets a 4-fold growth in the4. In January 2018, Ola announced plans to 4. By 2018, Hyundai is planning to enter the automobiles sector in India which includes thedevelop electric vehicles, including cars and hybrid vehicles segment, to explore alternative manufacturers of automobiles, auto componentsauto-rickshaws for the Indian market. fuel technology & to avail the government & tractor industry over the next 10 years. incentives.Growth Drivers and Opportunities FAME Small-car manufacturing hubGrowing demand 1. Planning to implement Faster Adoption & 1. General Motors, Nissan & Toyota announced Manufacturing Of Electric Hybrid Vehicles (FAME)1. Rising income and a large young population. plans to make India their global hub for small till 2020 which would cover all vehicle segments, cars. all forms of hybrid & pure electric vehicles. Under2 Greater availability of credit and financing the scheme, the Government of India is planningoptions. 2. Passenger vehicle market is expected to to provide grants of up to Rs 105 crore (US$ 16.33 touch 10 million units by 2020. Sales crossed million) to each of the selected city with population3. Demand for commercial vehicles increasing the three million milestone in FY17. of mor e than a million, for buying electric buses,due to high level of activity in infrastructure cars and three-wheelers in FY18. Additional funds 3. Strong export potential in ultra low-cost cars will be provided for charging infrastructure. segment (to developing & emerging markets). 2. The Government of India has shortlisted 11 4. Maruti Suzuki launched facelift version of Alto cities in December 2017 to have electric vehicle 800, after the success of earlier model based public transportation systems under this scheme. Investment Scenario Nissan 1. Planning to double its current investment level of about US$ 2.5 billion over the next five years 2. Aims to raise its market share to 10 per cent Spotlight on Indian Electronics 2018-19 | 119

High Priority Market | Power Sector Power Sector in IndiaRenewable energy is fast emerging as a major India has the fifth larg- source of power in India. Wind energy is the largest source of renewable energy in India, accounting for The Government of India est power generation 52.27 per cent of total installed capacity (62.85 GW). is planning to invite bids capacity in the world. There are plans to double wind power generation for the largest solar tender The country ranks third capacity to 60 GW by 2022. India has also raised the solar in the world, for installing globally in terms of power generation capacity addition target by five times to 100 20 gigawatts (GW) of solar electricity production. GW by 2022. The Union Government of India is preparing a power capacity, to give a Electricity production in ‘rent a roof’ policy for supporting its target of generating 40 gigawatts (GW) of power through solar rooftop projects by boost to manufacturing of India reached 1,003.525 2022. All the states and union territories of India are on board to fulfil the Government of India’s vision of ensuring 24x7 solar power equipment in Billion Units (BU) during affordable and quality power for all by March 2019. Over 280 million LED bulbs were distributed to consumers in India by India. Foreign participation April-January 2017. As Energy Efficiency Services Limited (EESL) under Unnati Jyoti by Affordable LEDs for All (UJALA). The Government of India in the development and per the 13th Five Year has been supportive to growth in the power sector. financing of generation Plan, India is targeting a and transmission assets, total of 100 GW of power The Cabinet Committee on Economic Affairs (CCEA) has engineering services, capacity addition by approved commercial coal mining for private sector and equipment supply and 2022. the methodology of allocating coal mines via auction and technology collaboration allotment, thereby prioritising transparency, ease of doing business and ensuring the use of natural resources for national in nuclear and clean coal development. technologies is also expected to increase. Introduction: Power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy.Spotlight on Indian Electronics 2018-19 | 120

High Priority Market | Power SectorIndia’s power sector is one of the most Power has set a target of 1,229.4 billion units 5. India added 467 MW of grid interactive winddiversified in the world. Sources of power (BU) of electricity to be generated in the power capacity between January-Novembergeneration range from conventional sources financial year 2017-18, which is 50 BU’s higher 2017, while wind power projects with cumulativesuch as coal, lignite, natural gas, oil, hydro than the target for 2016-17. The annual growth capacity of 9,500 MW are expected to be bidand nuclear power to viable non-conventional rate in renewable energy generation has been out by March 2018.sources such as wind, solar, and agricultural estimated to be 27 per cent and 18 per cent forand domestic waste. Electricity demand in the conventional energy. 6. A total of 26.3 million households which arecountry has increased rapidly and is expected below poverty line (BPL) have been electrifiedto rise further in the years to come. In order to The Indian solar industry has installed a total of under the Rural Electrification componentmeet the increasing demand for electricity in 2,247 megawatts (MW) in the third quarter of of Deen Dayal Upadhyay Gram Jyoti Yojanathe country, massive addition to the installed 2017, from 1,947 MW in the second quarter of (DDUGJY), according to the Ministry of Power,generating capacity is required. 2017. The cumulative installed capacity reached Government of India. 7,149 MW in the first nine months of 2017,India ranks third among 40 countries in EY’s covering more than one-third of total new power 7. Government InitiativesRenewable Energy Country Attractiveness capacity addition in 2017.Index, on back of strong focus by the 8. The Government of India has identified powergovernment on promoting renewable energy Two under-construction hydro projects of NHPC sector as a key sector of focus so as to promote in Himachal Pradesh and Jammu & Kashmir sustained industrial growth. Some initiatives and implementation (J&K), expected to be commissioned in 2018, by the Government of India to boost the Indian of projects in a time will produce 4,458.69 million units of additional power sector: bound manner. power, according to the Ministry of Power, Government of India. 9. “Saubhagya Yojana” programme was India has moved launched in Jharkhand to provide electricity to up 73 spots to The total estimated potential of tidal energy in all 29,376 villages. rank 26th in the India is about 8,000 megawatt (MW), of which World Bank’s 7,000 MW is in the Gulf of Kambhat, 1,200 10. The companies within the solar power list of electricity MW is in the Gulf of Kutch and 100 MW in the industry in India, specifically the ones involved in accessibility in 2017. Gangetic Delta. the operation and maintenance (O&M) of solar power plants have welcomed the Government In September 2017, The number of small hydro power projects set of India’s move to introduce regulations for the Government of up in India stood at 1,085 with total installed operating drones by February 2017. India launched the capacity of 4,399.355 megawatt (MW) as of Saubhagya scheme November 30, 2017. 11. Over 280 million LED bulbs were distributed to provide electricity to consumers in India by Energy Efficiency connections to over Investment Scenario Services Limited (EESL) under Unnati Jyoti 40 million families by Affordable LEDs for All (UJALA) as on in rural and urban Around 293 global and domestic companies December 19, 2017 and 524.3 million LED areas by December have committed to generate 266 GW of solar, bulbs were sold by private players till October 2018 at a cost of wind, mini-hydel and biomass-based power 2017. US$ 2.5 billion. in India over the next 5–10 years. The initiative would entail an investment of about US$ 12. In order to lower India’s crude oil imports, Market Size 310–350 billion. the Government of India is going to promote coal gasification to convert high ash coal into Indian power sector Between April 2000 and September 2017, the methanol that can be used as cooking gas and is undergoing a industry attracted US$ 12.3 billion in Foreign transportation fuels. significant change Direct Investment (FDI), accounting for 3.44 per that has redefined cent of total FDI inflows in India. 13. Initiatives taken by the Energy Efficiency the industry outlook. Services (EESL) have resulted in energy savings Sustained economic Some major investments and developments in of 37 billion kWh and reduction in greenhouse growth continues the Indian power sector are as follows: gas (GHG) emissions by 30 million tonnes. to drive electricity demand in India. 1. Energy Efficiency Services Ltd (EESL) has 14. The Union and state governments have The Government raised US$ 454 million from Global Environment agreed to implement the Direct Benefit Transfer of India’s focus on Facility (GEF) for its energy-efficiency projects (DBT) scheme in the electricity sector for better attaining ‘Power for in an attempt to boost India’s move towards targeting of subsidies. all’ has accelerated becoming a low carbon economy. capacity addition 15. All the states and union territories of India in the country. At 2. IL&FS Financial Services Ltd has partnered are on board to fulfil the Government of India’s the same time, the with Jammu and Kashmir (J&K) Bank Ltd to vision of ensuring 24x7 affordable and quality competitive intensity finance nine hydropower projects in J&K with power for all by March 2019. is increasing at both a total capacity of 2,000 MW, which require the market and financing of around Rs 20,000 crore (US$ 3.12 16. Uttar Pradesh Electricity Regulatory supply sides (fuel, billion). Commission, regulator of power sector in logistics, finances, Uttar Pradesh, has approved several steps to and manpower). 3. Sterlite Power has won one of the largest strengthen the financial position of state utilities 1,800 km power transmission project worth US$ and increase opportunities for companies in Total installed 800 million in Brazil, the company’s third project the transmission and distribution (T&D) EPC capacity of power in Brazil and the largest ever project won by an business. stations in India Indian company in Latin America. stood at 330,860.58 17. The Department of Economic Affairs, Megawatt (MW) as 4. With the aim of giving a boost to renewable Government of India, signed a guarantee on December, 2017. energy, the State Bank of India (SBI) and the agreement for IBRD/CTF loan worth US$ 98 World Bank have decided to sanction credit million and grant agreement for US$ 2 million The Ministry of worth Rs 2,317 crore (US$ 356.82 million) to with the World Bank for ‘shared infrastructure for seven corporates towards solar rooftop projects solar parks project’. to generate a total of 575 megawatt (MW) of solar energy. 18. The Road Ahead 19. The Government of India has released Spotlight on Indian Electronics 2018-19 | 121

High Priority Market | Power Sectorits roadmap to achieve 175 GW capacity in increased to 175 GW by 2022. energy companies making it to the list and RILrenewable energy by 2022, which includes 100 and IOC ranking third and seventh respectively.GW of solar power and 60 GW of wind power. 4. Favourable policyThe Union Government of India is preparing a environment: 100 per cent FDI is allowed Power generation has grown‘rent a roof’ policy for supporting its target of rapidly over the yearsgenerating 40 gigawatts (GW) of power through under the automatic route in the power segmentsolar rooftop projects by 2022. and renewable energy. 1. With electricity production of 1,160.1 BU in India in FY17, the country witnessed growth of20. Coal-based power generation capacity Advantage around 4.72 per cent over the previous fiscalin India, which currently stands at 192 GW is 1. Growing Demand: Expansion in year. Electricity production stood at 1,003.525expected to reach 330-441 GW by 2040. BU between April-January 2018. industrial activity to boost demand for electricity, 2. Over FY10–FY17, electricity production in21. The 2026 forecast for India’s non-hydro Growing population and increasing penetration India grew at a CAGR of 7.03 per cent.renewable energy capacity has been increased and per-capita usage to provide furtherto 155 GW from 130 GW on the back of more impetus, Power consumption is estimated to 3. In March 2017, the Power Ministry hasthan expected solar installation rates and increase from 1160.1 TWh in 2016 to 1,894.7 launched an application named - GARV-successful wind energy auctions. TWh in 2022. II, to provide real time data related to rural electrification regarding all un-electrified villages22. India could become the world’s first country 2. Attractive Opportunities: in India. A total of 16,385 villages out of 18,452to use LEDs for all lighting needs by 2019, un-electrified villages in India have beenthereby saving Rs 40,000 crore (US$ 6.23 Ambitious projects and increasing investments electrified up to February 2018 as part of thebillion) on an annual basis. across the value chain, Diversification into target to electrify all villages by May 1, 2018. renewable sources increasing growth avenues.23. India’s installed solar power capacity Sources of power with shares inreached 14,771.69 as of September 2017. 3. Higher Investment: Total FDI total installed capacity24. The government’s immediate goal is to inflows in the power sector reached US$ 12.97 1. Thermal: Coal and Gas 65.73%: India hasgenerate two trillion units (kilowatt hours) billion during April 2000 to December 2017, large reserves of coal. By the end of Januaryof energy by 2019. This means doubling accounting for 3.52 per cent of total FDI inflows 2018, total installed coal capacity in India stoodthe current production capacity to provide in India, Investment for 7 new transmission at 193,821.5 MW.24x7electricity for residential, industrial, systems that includes strengthening of national 2. Hydro: 2.03%: With a large swathe of riverscommercial and agriculture use. A total of grid have been sanctioned and water bodies, India has enormous potential16,064 villages out of 18,452 un-electrified for hydropower. As of January 2018, India hasvillages in India have been electrified up to 4. Policy Support: 100 per cent FDI 44.96 GW of hydro power generating capacityDecember 2017 as part of the target to electrify 3. Renewable 13.45%: Wind energy is theall villages by May 1, 2018. allowed in the power sector has boosted FDI inflows in this sector, Schemes like Deen Dayal25. The Government of India is taking a Upadhyay Gram Jyoti Yojana (DDUGJY) andnumber of steps and initiatives like 10-year tax Integrated Power Development Scheme (IPDS)exemption for solar energy projects, etc., in have already been implemented for rural andorder to achieve India’s ambitious renewable urban areas respectively.energy targets of adding 175 GW of renewableenergy, including addition of 100 GW of solar India among top four powerpower, by the year 2022. The government producers and consumershas also sought to restart the stalled hydropower projects and increase the wind energy 1. With a production of 1,423 TWh, India isproduction target to 60 GW by 2022 from the the third largest producer and the third largestcurrent 20 GW. consumer of electricity in the world. 2. Although power generation has grown moreSummary: than 100-fold since independence, growth in demand has been even higher due to1. Third largest producer and accelerating economic activity.fourth largest consumer globally: 3. India to become the world’s first country to use LEDs for all lighting needs by 2019, therebyIndia is the third largest producer and fourth saving Rs 40,000 crore (US$ 6.23 billion) on anlargest consumer of electricity in the world, with annual basis.the installed power capacity reaching 334.4 GW 4. India’s energy firms have made significantas of January 2018. The country also has the progress in the global energy sector, accordingfifth largest installed capacity in the world. to the latest S&P Global Platts Top 250 Global Energy Rankings, with 10 out of 14 Indian2. Large-scale governmentinitiated expansion plans: Thegovernment targets capacity addition of around100 GW under the 13th Five-Year Plan (2017–22). In June 2017, the government announcedintentions to set up an asset reconstructioncompany for handling the stressed assetsin power sector. This would also help in thetransfer of stressed power generation assetsof stalled power projects, which would then beauctioned.3. Robust growth in renewables:Wind energy is estimated to contribute 60 GW,followed by solar power at 100 GW by 2022.The target for renewable energy has been Spotlight on Indian Electronics 2018-19 | 122

High Priority Market | Power Sectorlargest renewable energy source in India; approved schemes for green corridor, CPSU, Strategies adoptedprojects like the Jawaharlal Nehru National defence solar projects, solar parks, generation-Solar Mission (aims to generate 20,000 MW of based incentives for wind projects, etc. 1. Control generation costs:solar power by 2022) are creating a positiveenvironment among investors keen to exploit Generation capacity has Companies are developing captive coal fields toIndia’s potential. There are plans to set up four increased at a healthy pace reduce price volatility and ensure uninterruptedsolar power plants of 1GW each. As of January supply of fuel to control generation cost, Most2018, India has 62.85 GW of renewable energy 1. Installed capacity increased steadily over of the power companies are now located nearcapacity. the years, posting a CAGR of 10.57 per cent in energy source. This helps minimise costs of fuel FY09–17 transport.4. Nuclear 18.79%: As of January 2018, Indiahas 67.80 GW of net electricity generation 2. Energy generation from conventional sources 2. Acquiring sources of fuelcapacity using nuclear fuels (across 20 stood at 893.81 billion units (BU) between April- supply: Power companies are now lookingreactors) and aims to increase it to 45 GW by January 2018.2020; with one of the world’s largest reserves at securing adequate supplies of fuel byof thorium, India has a huge potential in nuclear 3. Coal-based power generation capacity in targeting not only domestic but also overseasenergy. India’s proven natural gas capacity India, which currently stands at 194 GW is resources, Reliance Power already has coalmeasures about 25,150.38 MW as on January expected to reach 330-441 GW by 2040. reserves in Indonesia, Essar Power have captive2018 coal mines in Indonesia from which it extracts 4. Initiatives taken by the Energy Efficiency coal for power plants in India, Government hasSources of power with shares in Services (EESL) have resulted in energy savings enabled the power utilities for swapping theirtotal installed capacity of 37 billion kWh and reduction in greenhouse coal supplies with the nearest sources so as to gas (GHG) emissions by 30 million tonnes. save miscellaneous costs and decongest the1. As of January 2018, total thermal installed rail network.capacity in the country stood at 219.81 GW, Generation capacity haswhile hydro and renewable energy installed increased at a healthy pace 3. Diversifying generationcapacity totalled to 44.96 GW and 62.85 GW, technologies: Companies are usingrespectively 1. Among the different sources of power in India, the CAGR in installed capacity over multiple-generation technologies based on2. For the 12th Five-Year Plan, a total of 88.5 FY07–FY17 was - 10.57 per cent for thermal a project’s requirement, Companies such asGW of power capacity addition was targeted; power, 22.06 per cent for renewable energy, NTPC and Reliance Power already have coal-of which, 72.3 GW constitutes thermal power, the fastest among all sources of power, 2.51 fired, gas-fired and hydroelectric capacity, This10.8GW hydro power and 5.3 GW nuclear per cent for hydro power and 5.68 per cent for helps them diversify, reduces dependence on apower. As of March 2017, 99.21 GW of installed nuclear power. single source.power capacity was achieved, of which 91.73GW is thermal, 5.48 GW is hydro and 2 GW is 2. India is expected to become the third biggest 4. Additional revenue streams:nuclear. solar market across the globe in 2017, with 8.8 Gigawatt (GW) of capacity addition projected Most of the companies are now looking to3. As a part of the green corridor project, the for the year ahead.* Moreover, the country’s sell their carbon credits to generate additionalpower lines would transmit 20 gigawatts of solar capacity is expected to reach 18.7GW bypower capacity from 34 solar parks across 21 2017, which is about 5 per cent of global solarstates.4. In January 2017, the 2nd unit ofKundankulam Nuclear Power Project, attaineda capacity of 1000 Mwe and this is anticipated capacity. revenue by employing supercritical technology.to strengthen the overall power generationcapacity in India. 3. In August 2017, Bridge to India (BTI) has 5. Digital India: Launch of smart grid mission increased its forecast for India’s solar power with 14 DISCOMS as a pilot, Smart metering for5. In May 2017, the government approved capacity addition to 9.4 Gigawatts (GW) in high – end users of electricity.the raising of bonds worth US$ 351.03 million 2017 from the previous 8.8 GW as solar powerfor renewable energy through the Indian is becoming a more attractive new source of Growth driversRenewable Energy Development Agency power with decreasing costs. Industrial expansion and strong(IREDA). The funds will be then used by the GDP growth driving powerMinistry of New and Renewable Energy for the 4. The 2026 forecast for India’s non-hydro demand renewable energy capacity has been increased to 155 GW from 130 GW on the back of more 1. Multiple drivers (industrial expansion, growing than expected solar installation rates and per-capita incomes) are leading to growth in successful wind energy auctions, according to power demand; this is set to continue in the a statement by BMI Research. coming years 2. India is set to become a global manufacturing hub with investments across the value chain 3. India’s power demand is expected to rise up to 1,905 TWh by FY22 Spotlight on Indian Electronics 2018-19 | 123

High Priority Market | Power SectorIndustrial expansion and strong GDP growth 2018, Under the Union Budget 2018-19, the Integrated Power Development Scheme (IPDS).driving power demand Government of India has allocated Rs 16,000 crore (US$2.47 billion) towards this scheme. 15. Ujwal Discoms Assurance1. 98 GW of generation capacity was added Yojana (UDAY): In February 2017,during FY11-16; future investments will benefit 6. UJALA Scheme: Over 280 million LEDfrom strong demand fundamentals, policy India Ratings and Research (Ind-Ra) assignedsupport and increasing government focus on bulbs were distributed to consumers in India UP Power Corporation (UPPCL)’s proposedinfrastructure. Around 21.67 GW of generation by Energy Efficiency Services Limited (EESL) US$ 1.48 billion bond a provisional ‘INDcapacity was added during 2016-17. under Unnati Jyoti by Affordable LEDs for All AA(SO)’ rating. This makes it India’s 1st (UJALA) as on December 19, 2017 and 524.3 state government revenue-supported bond,2. The Government of India had targeted million LED bulbs were sold by private players The Government of India has signed fourpower capacity addition of 88,537 MW by FY17 till October 2017. Memorandum of Understanding (MoU) withduring the 12th five year plan. India exceeded the state of Nagaland and Union Territoriesthe target and achieved capacity addition of 7. National Electricity Policy: (UTs) of Andaman & Nicobar Islands, Dadra &99,209.47 MW by March 2017. Nagar Haveli & Daman & Diu under the Ujwal Provide electricity to all areas, Prepared in DISCOM Assurance Yojana (UDAY) to improve3. Per capita electricity consumption in the consultation with state governments, CEA, operational efficiency of electricity departmentscountry grew at a CAGR of 9.63 per cent, and other stakeholders, Supply of reliable in these places.during FY06-FY16, reaching 1075 KWh in FY16 and quality power in an efficient manner and reasonable rates. 16. National Tariff Policy (2016):Policy support and initiatives 8. Feed – in Tariff: This Scheme used The National Tariff Policy for Electricity was1. Electricity Act, 2003: Elimination amended by the Union Government on for promoting generation of electricity from 20 January, 2016, and aims to achieve theof licensing for electricity generation projects, renewable energy sources, Allows Power objectives of UDAY scheme, Special focusIncreased competition through international Producers to sell renewable energy generated on renewable energy has been laid. In ordercompetitive bidding, Demarcation of electricity to an off – taker at a pre – determined to promote use of renewable energy, solartransmission as a separate activity. tariff for a given period of time. Renewable Purchase Obligation (RPO) is proposed to increase to 8 per cent by 2022.2. National Tariff Policy, 2006: 9. National Tariff Policy (2016): 17. Coal Mining Auction: The CabinetAdequate return on investment to companies The National Tariff Policy for Electricity wasengaged in power generation, transmission and amended by the Union Government on 20 Committee on Economic Affairs (CCEA) hasdistribution, Uniform guidelines to SERCs for January, 2016, The policy aims to achieve the approved commercial coal mining for privatefixing tariffs, Assured electricity to consumers at objectives of UDAY scheme, Special focus sector and the methodology of allocatingreasonable and competitive rates. on renewable energy has been laid. In order coal mines via auction and allotment, thereby to promote use of renewable energy, solar prioritising transparency, ease of doing business3. Ultra Mega Power Projects Renewable Purchase Obligation (RPO) is and ensuring the use of natural resources for(UMPPs): Launch of the UMPP scheme proposed to increase to 8 per cent by 2022. national development.through tariff-based competitive bidding, Ease 10. BIMSTEC Trans-Power 18. Rent a roof policy: The Unionof land possession, provision of fuel, water and Exchange and Developmentnecessary clearances for enhancing investor Project: In April 2017, the Indian Government Government of India is preparing a ‘rent a roof’confidence. policy for supporting its target of generating 40 approved the proposal of the Ministry of Power gigawatts (GW) of power through solar rooftop4. R-APDRP: R-APDRP was launched by for signing of an MoU for establishment of projects by 2022. the BIMSTEC Grid Interconnection. The MoUMinistry of Power with the purpose of reducing will be signed at the upcoming 3rd BIMSTEC 19. National Mission on EnhancedAT&T losses up to 15 per cent by upgradation Energy Ministers’ Meeting, The BIMSTEC is Energy Efficiency: In August 2014,of transmission and distribution network, Linking an international organisation involving a groupdisbursement of central government funds (to of South Asia and South-East Asia countries, Government had launched the policy with anstates), with actual reduction in transmission namely, Bangladesh, India, Myanmar, Sri Lanka, investment of US$ 128 million, Funds energyand distribution losses. Sanctioned projects of Thailand, Bhutan and Nepal. efficient electrical appliances.more than US$ 5.8 billion. 11. Fuel Supply Agreement: Fuel 20. Direct Benefit Transfer (DBT)5. Saubhagya Scheme: The ‘Pradhan Scheme: The Union and state governments supply agreement with Coal India Ltd will ensureMantri Sahaj Bijli Har Ghar Yojana’, with an the availability of coal for power companies over have agreed to implement the Direct Benefitoutlay of Rs 16,320 crore (US$ 2.51 billion), has the long term Transfer (DBT) scheme in the electricity sectorbeen launched by the Government of India withthe aim of providing electricity access to over 12. Spinning Reserve: In order to meet40 million families in the country by December the peak load shortages and grid stability, spinning reserves have been created. 13. Energy Conservation Campaign: Replacing nationwide street lights with LED lights, Plan to save 10 per cent energy that would light up 11 crore lives, Replacing 1 crore bulbs in Delhi within one year. 14. Power to the people: Implementation of a new scheme – Ujwal DISCOM Assurance Yojana (UDAY) which would enable electrification for all villages by reducing losses through programmes that involve public participation, The Union Budget 2018-19 has allocated Rs 3,800 crore (US$ 586.96 million) towards the Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Rs 4,900 crores (756.87 million) towards the Spotlight on Indian Electronics 2018-19 | 124

High Priority Market | Power Sectorfor better targeting of subsidies. a CAGR of 7 per cent to 1,894.7 TWh over FY07–22 projects.21. Vision ‘24x7’ Power for All’: 2. Current production levels are not enough to meet 3. Biomass is the 2nd largest source of demand; annual demand outstrips supply by about renewable energy, accounting for ~12 per centAll the states and union territories of India are 7.5 per cent of total installed capacity in renewable energy.on board to fulfil the Government of India’s There is a strong upside potential in biomass invision of ensuring 24x7 affordable and quality 3. All India per capita consumption of electricity is the coming years.power for all by March 2019, as per the Ministry estimated to reach 1348 TWh by FY17of Power and New & Renewable Energy, 4. In May 2017, India’s solar power tariffs fellGovernment of India. 4. Various reforms being undertaken by the to a new low of US$ 0.038 per unit during the government are positively impacting India’s power auction of a 250 megawatt capacity at Bhadla in22. Boost to manufacturing: The sector. In wake of the surging domestic coal Rajasthan. This bid was placed by South Africa’s production, the country’s power sector is becoming Phelan Energy Group and Avaada Power toGovernment of India is planning to invite bids increasingly stable. win contracts to build capacities of 50MW andfor the largest solar tender in the world, for 100MW, respectively, at Adani Renewable Energyinstalling 20 gigawatts (GW) of solar power Power generation: overall Park Rajasthan Ltd.capacity, to give a boost to manufacturing of fundamentals will remain strongsolar power equipment in India. 5. Declining solar power prices as compared to 1. The government is targeting capacity addition of thermal power has prompted the government23. No environment clearance around 100 GW under the 13th (2017–22) Five-Year to switch to the renewable energy resources.required for solar projects: The Ministry Plan Three coal power projects have been shelved in Odisha, Gujarat and Uttar Pradesh due to lowof Environment, Forest and Climate Change, 2. There is a tangible shift in policy focus on the rate of renewable solar energy at US$0.038 /Government of India has clarified that solar PV sources of power. The government is keen on kWh.(photovoltaic) power, solar thermal power projects, promotion of hydro, renewable and gas-basedand solar parks will not require the environment projects, as well as adoption of clean coal Strong upward momentum inclearance which was mandatory under the technology nuclear energy likely in mediumprovisions of Environment Impact Assessment to long term(EIA) notification, 2006. 3. In March 2017, Bhoruka Power Corp. announced its plans to raise US$ 120 million, to increase their 1. Currently, the country has net installed capacity24. Green Energy Corridor Project: hydro and wind renewable energy capacity to 1 of 6.78 GW, using nuclear fuels, across 20 Gigawatt by 2020. reactors. Of the 20 reactors, 18 are PressurisedUnder the Union Budget 2018-19, the Government Heavy Water Reactors (PHWR) and 2 are Boilingof India has allocated Rs 4,200 crore (US$ 648.75 4. The total estimated potential of tidal energy in Water Reactors (BWR)billion). India is about 8,000 megawatt (MW). 2. The government aims to quadruple India’sOpportunities Indian power sector: market with enormous growth nuclear power generation capacity to 20 GW byPower generation: overall potential 2020;fundamentals will remain strong 1. The peak power requirement by the country in 3. Nuclear Power Corporation of India Limited1. Demand for electricity is expected to increase at FY17 stood at 159.54GW. (NPCIL) plans to construct 5 nuclear energy parks with a capacity of 10,000 MW. 2. The peak power demand in the country stood at 164.066 GW between April-January 2018. 4. Both the units of the Kudankulam nuclear power plant, Tamil Nadu, by NPCIL attained full 3. To meet the rising electricity demand, the Central generation capacity of 1,000 MW each as of Government plans to expedite market op portunity December 2017. of US$ 14.94 billion for power transmission. Industry associations Renewable energy is fast emerging as a major source of power Council of Power Utilities: A-2/158, Janakpuri, New Delhi-110058, India Tel: 91 11 25618472, 1. Wind energy is the largest source of renewable 45652708 Fax: 25611622 E-mail: cvjvarma@ energy in India; it accounts for an estimated 52.27 gmail.com, [email protected] Web site: per cent of total installed capacity (62.85 GW). www.indiapower.org There are plans to double wind power generation capacity to 60 GW by 2022. Bureau of Energy Efficiency (BEE): Ministry of Power, 4th Floor, SEWA Bhawan, R. K. Puram, 2. The Ministry of New and Renewable Energy New Delhi – 110066, India (MNRE) is looking to auction around 3 GW of wind power projects by the end of FY 2017-18 Tel: 91 11 26179699 , Fax: 91 11 26178352, and is also in the final stages of drafting separate E-mail: [email protected], Website: bidding guidelines for auctioning wind power http://www.beeindia.in/ Hydro Power Association (India): Flat no 6, Green Park Apartment, Shriram Society, Warje, Pune - 411058, Maharashtra, India Tel: 91 20 25233338, E-mail: hypaindia@gmail. com, [email protected], secretary@ hpaindia.org, Website: http://hpaindia.org/ Indian Wind Energy Association (INWEA): PHD House, 3rd Floor, Opp. Asian Games Village, August Kranti Marg, New Delhi-110016, India Tel: 91 11 26523042 E-mail: [email protected] Web site: http://www.inwea.org/ Spotlight on Indian Electronics 2018-19 | 125

RenewableEinnIenrdgiyaIndustry • India accounts for approximately 4% of the total global electricity generation and contributes 4.43 per cent to the global renewable generation capacity amounting to 2,011 GW in 2016 • The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis. • As of July 2017, total renewable power generation installed capacity in the country stood at 103.92 GW, which is 31.2 per cent of the total installed capacity • Hydro power forms the largest source of energy constituting over 43 per cent of the total renewable power generation installed capacity • A hydro power revival policy is in underway which amongst others is likely to include the classification of all hydro power projects as renewable energy Spotlight on Indian Electronics 2018-19 | 126

High Priority Market | Renewable Energy he Indian renewable energy sector is the second most to clean energy after it ratified the Paris Agreement. With the increased attractive renewable energy market in the world as per support of government and improved economics, the sector has the Renewable Energy Attractiveness Index 2017. India’s become attractive from investors perspective and India ranked second in installed renewable power generation capacity (including Renewable Energy Attractive Index 2017. As India looks to meet its energy hydropower) increased at a Compound Annual Growth demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.T Rate (CAGR) of 8.39 per cent from 42.4 gigawatts (GW) in FY2006-07 to 107.81 GW in FY18 (as of January 2018), Market Sizewhich is 31.77 per cent of the total installed capacity. Total installed renewable energy capacity in India touched 62.846 GW asIndia has the fourth largest installed capacity of wind power and the third of December 2017, which is around 18.8 per cent of total energy capacitylargest installed capacity of concentrated solar power (CSP). India added of the country (333.5 GW).record 11.0 GW of combined wind and solar capacity in 2016-17. Hydropower forms the largest source of energy constituting over 43 per cent of During December 2017, total installed wind power capacity in thethe total renewable power generation installed capacity. India witnessed renewables mix stood at 32.85 GW (52.27 per cent), while solar powerhighest ever solar power capacity addition of 5,525.98 MW and 467.11 capacity was 17.05 GW (27.13 per cent). Total solar capacity in India isMW of wind power capacity addition in 2017-18 (up to November 2017). expected to be 8 per cent of global solar capacity by 2035.15,000 biogas plants were installed during the same time period. Off-gridpower equivalent to 168.87 MW was added in the country during January With a potential capacity of 363 gigawatts (GW) and with policies focused– November 2017. on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.The Ministry of New and Renewable Energy, Government of India, hasformulated an action plan to achieve a total capacity of 60 GW from hydro Investments/ Developmentspower and 175 GW from other RES by March, 2022, which includes100 GW of Solar power, 60 GW from wind power, 10 GW from biomass According to data released by the Department of Industrial Policy andpower and 5 GW from small hydro power. This has been proving to be the Promotion (DIPP), FDI inflows in the Indian non-conventional energymajor thrust for the sector in India as the market players have sufficient sector between April 2000 and September 2017 stood at US$ 6.01 billion.incentives to move to clean source. Under Union Budget 2018-19, Rs3,762 crore (US$ 581.09 million) has been allocated for grid-interactive The Central Electricity Authority (CEA) expects investment in India’s powerrenewable energy schemes and projects. transmission sector to reach Rs 2.6 trillion (US$ 40.3 billion) during the 13th plan (2017-22), and to enhance the transmission capacity of theAs India looks to meet its energy demand on its own, which is expected to inter-regional links by 45,700 megawatt (MW).reach 15,820 TWh by 2040, renewable energy is set to play an importantrole. By 2030, renewable sources are expected to help meet 40 per cent Some major investments and developments in the Indian renewableof India’s power needs. The non-conventional energy sector has received energy sector are as follows:a total FDI equity inflow of US$ 6.26 billion during April 2000 to December2017. • Private Equity (PE) investments in India’s wind and solar power have increased by 47 per cent in 2017 (January 1 to September 25) to US$ 920The Indian renewable energy sector is the second most attractive million, across nine deals, as compared to US$ 630 million coming fromrenewable energy market in the world. The country ranks fourth in the 10 deals during the corresponding period in 2016.world in terms of total installed wind power capacity. India added 11.788GW of power generation capacity from renewable sources between • Adani Group from India was ranked as the 12th largest utility solarJanuary – November 2017. The focus of Government of India has shifted power developer in the world in January 2018. • NLC India Ltd commissioned its 130 MW solar power project in Tamil Nadu in January 2018. • In December 2017, IL&FS Financial Services Ltd partnered with Jammu and Kashmir (J&K) Bank Ltd to finance nine hydropower projects in J&KSpotlight on Indian Electronics 2018-19 | 127

High Priority Market | Renewable Energywith a total capacity of 2,000 MW, which require • The Department of Solar Energy Corporation capita energy and electricity consumption. Itfinancing of around Rs 20,000 crore (US$ 3.12 of India (SECI), outlined Government of India’s was one-third of the world average in 2015-billion). plan to tender 750 MW of solar capacity, along 16; As the economy grows the electricity with offering deals covering four GW of wind consumption is projected to reach 15,280 TWh• The Asian Development Bank (ADB) and capacity during FY 2017-18. in 2040 from the 4926 TWh in 2012. Most of thisthe Punjab National Bank (PNB) have signed demand would come from the growth in thea financing loan worth US$ 100 million, which Road Ahead buildings, industry and transport sectors.will be used to support solar rooftop projectson commercial and industrial buildings across The Government of India is committed to Increasing Investment: Non-India. increased use of clean energy sources and conventional energy received FDI inflow of is already undertaking various large-scale US$ 6.26 billion between April 2000 and• The Government of India and the Asian sustainable power projects and promoting December 2017; With government’s ambitiousDevelopment Bank (ADB) have signed a loan green energy heavily. In addition, renewable green energy targets, the sector has becomeagreement for US$ 175 million to be provided to energy has the potential to create many quite attractive for both foreign and domesticPower Grid Corporation of India Limited (PGCIL) employment opportunities at all levels, investors.for construction of interstate transmission especially in rural areas. The Ministry of Newsystems for solar power projects which will and Renewable Energy (MNRE) has set an Competitive Advantage: India receivesenable the transfer of surplus solar energy to ambitious target to set up renewable energy about 300 days of sunshine in an year. Thispower-deficit states. capacities to the tune of 175 GW by 2022 of makes it a perfect candidate to harness the which about 100 GW is planned for solar, 60 for solar power available. India also has a largeGovernment initiatives wind and other for hydro, bio among other. India hydro power potential which is being explored in will need investments of around US$ 125 billion the north-eastern states of the country; CoupledSome initiatives by the Government of India to to reach this target. with regular solar auctions and new governmentboost the Indian renewable energy sector are mega projects like solar parks, the setup andas follows: It is expected that by the year 2040, around 49 financing costs have come down significantly in per cent of the total electricity will be generated the past two years.• In December 2017, a new policy was released by the renewable energy, as more efficientfor testing, standardisation and certification batteries will be used to store electricity which Policy Support: Indian government aimsof products used in the renewable energy will further cut the solar energy cost by 66 per to achieve 175 GW of renewable energy bysector to address quality issues and develop cent as compared to the current cost. Use of 2022; Because of the immense support fromstandards as per international practices. renewables in place of coal will save India Rs government, India has ranked 2nd in the 54,000 crore (US$ 8.43 billion) annually. ‘Renewable Energy Country Attractiveness• Around 4.96 million household size biogas Index 2017’; The aim of the government toplants were installed in the country under the Ambitious Targets: As a part of its Paris electrify all villages by 2018, also a boon forNational Biogas and Manure Management Agreement commitments, the Government of the power sector. India also had highest everProgramme (NBMMP) by 2016-17 end. India has set an ambitious target of achieving capacity addition in renewable energy in 2016- 175 GW of renewable energy capacity by 2022. 17.• The Maharashtra State Government plans to With this the market players in India now haveset up a 500 MW capacity solar park in its Dhule enough incentive to move to clean sources Market overview and trendsdistrict with private bids planned in FY18 and of energy; 60 solar cities will be developed inhas already selected 1,000 acres of land for the India as part of Ministry of New and Renewable • India accounts for approximately 4 perfirst phase of the project. Energy’s Solar Cities program. cent of the total global electricity generation and contributes 4.43 per cent to the global• The Government of India has announced Immense Growth Potential: India has very low renewable generation capacity.plans to implement a US$ 238 million National conventional energy resources compared to theMission on advanced ultra-supercritical required energy needs of its huge population • The International Energy Agency’s Worldtechnologies for cleaner coal utilisation. and rapidly increasing economy. But India can Energy Outlook projects a growth of renewable harness the huge potential of solar energy as energy supply to 4,550 GW in 2040 on a global• The Ministry of New and Renewable Energy it receives sunshine most of the year. It also basis.(MNRE) has decided to provide custom and has vast potential in hydro power sector whichexcise duty benefits to the solar rooftop sector, is being explored in the north-eastern states • As of January 2018, total renewable powerwhich in turn will lower the cost of setting up as of the country; India added record 11.0 GW of generation installed capacity in the countrywell as generate power, thus boosting growth. combined wind and solar capacity in 2016-17. stood at 107.81 GW, which is 32.24 per cent of It is expected that India will overachieve its the total installed capacity.• The Indian Railways is taking increased efforts Paris Agreement goals; Renewable sources arethrough sustained energy efficient measures expected to help meet 40 per cent of India’s • A hydro power revival policy is underwayand maximum use of clean fuel to cut down power needs by 2030. which amongst others is likely to include theemission level by 33 per cent by 2030. classification of all hydro power projects as Competition: The competition in the sector renewable energy• The Union Cabinet has approved raising of has risen recently, especially in the solar powerbonds worth Rs 2,360 crore (US$ 366.2 million) segment, where tariffs reached record low in Generation capacity has increasedby the Indian Renewable Energy Development May 2017. The large integrated players are in a at a healthy paceAgency (IREDA), which will be used in various better position with higher returns compared torenewable energy projects in FY 2017-18. the smaller contractors. • Installed renewable power generation capacity has increased steadily over the years,• The Union Cabinet has approved construction Increasing Investments: The renewable energy posting a CAGR of 8.39 per cent in FY07–17.of 10 units of indigenous Pressurized Heavy space in India has become very attractiveWater Reactors (PHWR), with a nuclear capacity from investors’ perspective and has received • India has the fourth largest installed capacityof 700 MW each, which is expected to bring FDI inflow of more than US$ 6.26 billion up to of wind power and the third largest installedsubstantial economies of scale and maximise December 2017. capacity of concentrated solar power (CSP).cost and time efficiencies, and thereby boostIndia’s nuclear industry. Advantage India • The Government of India has formulated an action plan to achieve a total capacity of 60• Centre Government has proposed building Robust Demand: India has relatively low per GW from hydro power and 175 GW from othermodel cities where power demand is met only RES (excluding large hydro projects) by March,by solar energy and further stated that bio- 2022, which includes 100 GW of Solar power,ethanol refinery projects should be accelerated 60 GW from wind power, 10 GW from biomassto control India’s dependency on fossil fuels. Spotlight on Indian Electronics 2018-19 | 128

High Priority Market | Renewable Energy • Under Union Budget 2018-19, Rs 3,762 crore (US$ 581.09 million) has been allocated for grid-interactive renewable energy schemes and projects which includes Rs 2,045 crore (US$ 315.88 million) for solar power. • Green energy corridors project has been allocated Rs 600 crore (US$ 92.68 million) under Union Budget 2018-19. Solar Power Generation growth likely to outweigh other sources by 2022power and 5 GW from small hydro power. • Growth in solar power installed capacity is mitigation potential makes it a viable alternative• Solar installation in India is expected to expected to surpass the installed capacity of for power generation among the available cleanincrease 360 per cent by 2020. wind power, reaching 100 GW by 2022 from its energy sources.• India witnessed highest ever solar power current levels of 17.05 GW as of January 2018.capacity addition of 5,525.98 MW and 467.11 • Under Union Budget 2018-19, zero importMW of wind power capacity addition in 2017- • Three new solar parks have been approved in duty on components used in making solar181. 15,000 biogas plants were installed during 2017-18 with a total capacity of 1,523 MW. panel was announced to give a boost tothe same time period. • Rapidly falling costs has made Solar PV the domestic solar panel manufacturers.• About 4.96 million household size biogas largest market for new investment.plants have been installed in India since the • Further, the scaling up of the target of National Strategies adoptedinception of National Biogas and Manure Solar Mission to 100 GW from 20 GW of gridManagement Programme (NBMMP). connected solar power by 2022, creates a Full Integration: Suzlon, a key player• Among the different sources of renewable positive environment for investors keen to tap in the wind power segment, is a verticallypower in India, the CAGR in installed capacity into India’s renewable energy potential. integrated company. It has been producing allover FY07–FY17 was - 2.32 per cent for • In November 2017, Government of India the wind turbines and installing them coupledhydro power and 20.12 per cent for other signed a US$ 100 million agreement with the with the maintenance. It has service supportrenewable energy sources, supported by the World Bank for ‘Shared Infrastructure for Solar centres across the globe. Adani Power alsocommencement of solar capacity addition Parks Project’. aims to become a fully-integrated solar PVsince 2012 • As of November 2017, Government of manufacturer. The returns of fully integrated• The Government of India is projecting a rapid India is also planning ‘Rent a Roof’ policy to players exceed those of Engineering,17.04 per cent CAGR increase in other RES push adoption of solar energy while giving Procurement and Construction (EPC)installed capacity to 275 GW by 2027 supported the households a chance to become energy contractors.by a surge in solar power capacity addition. independent.• Off-grid power equivalent to 168.87 MW Solar Power Generation growth Decentralised Solar Power: Electricitywas added in the country during January – likely to outweigh other sources by to all has become a major thrust area forNovember 2017. 2022 Government of India. This includes households • Due to its favourable location in the solar and villages and slums which are not currently a• Record capacity renewable projects are belt (400 S to 400 N), India is one of the part of the grid or centralised distribution. Selcoexpected to be offered by the government by best recipients of solar energy with relatively Solar Pvt Ltd started installing solar panels inthe end of 2017-18, exceeding a combined abundant availability slums which were not connected to the grid ascapacity of 10,000 MW. • India has a vast potential for solar power a pilot project in 2008 and has since expanded generation with about 58 per cent of the total into other states as well. They have also used land area (1.89 million km2) receiving above 5 standardized financial packages to get the slum kWh/m2/day annual average global insolation people move from kerosene to solar power. • This coupled with its highest global warming PPA & Lower Tariffs: With the increasing competition and increasing FDI, players in the solar sector have started bidding at lower prices with solar tariffs reaching record low of Rs 2.44 (US$ 0.04) per unit in May 2017. Power Purchase Agreements with states have become important part of the project cycle for Indian companies. Wind power tariff reached record low of Rs 2.43 (US$ 0.038) in 500 mw reverse auctions by Gujarat Urja Vikas Nigam Limited (GUVNL) in December 2017. Growth Drivers Government Policies National offshore wind energy policy, 2015: Promotes deployment of Offshore Wind Farms up to 12 nautical miles from coast. Research and Development activities to take place up to Spotlight on Indian Electronics 2018-19 | 129

High Priority Market | Renewable EnergyExclusive Economic Zone (EEZ) of 200 nautical 40 per cent of Intra state and 70 per cent of supply will be required if India is to grow at eightmiles. Under the policy single window clearance inter-state transmission schemes will be funded per cent. This shows that electricity will continueis offered. Tax holiday of 10 years for offshore through the soft loan. to remain a key input in India’s GDP growth.wind energy generation. • Wind Bidding Scheme: Scheme for setting up 1000 MW Inter State Transmission Move towards Renewable SourcesRepowering Policy: Promotes optimum Systems (ISTS) connecting wind power • It has been estimated that renewablesutilisation of wind energy resources by creating projects; Projects of 50MW and above will be will comprise 49 per cent of India’s powerfacilitative framework for repowering. An interest connected to ISTS point; The scheme also generation by 2040.rebate of 0.25 per cent over the interest rebate provides for 25 years of PPA and PSA; The first • Over the last few years there has beenoffered to new wind energy projects will be round of auction was completed in February an increase in percentage contribution ofprovided. All fiscal and financial benefits offered 2017 and another round of auction was renewable energy to total installed capacity.to new wind power projects will be extended to announced in May 2017; Wind power projects In 2013-14 the contribution was 12.92 perrepowering projects with the capacity of 3 GW will be auctioned by cent which has increased to 18.79 per cent by FY18 end. January 2018.Wind-Solar Hybrid Policy: Aims • Skill Development: As of January • India aims to achieve a total of 175 GW ofto achieve a hybrid wind-solar 2017, there were about 100,000 people working installed renewable energy capacity by 2022.capacity of 10GW by 2022. in four major areas of renewable energy sector It is estimated that India will become the thirdHybridization of the two technologies will help viz. Solar, Wind, Biomass and Small Hydroin: Minimizing Variability and Optimal utilization Power; To meet the rising demand of trained largest solar market in 2017 while India alreadyof infrastructure including land and transmission manpower, a target of achieving 50,000 “Surya has the fourth largest wind power installedsystems. Mitras” of skilled manpower in solar energy capacity globally. sector by 2019-20 has been set. • India has moved from the seventh positionRenewable Purchase Obligations Opportunities in 2014 to second position in 2017 in the(RPO’s): RPO’s are a mechanism by which Huge Untapped Potential: India is estimated Renewable Energy Attractiveness Index.1State Electricity commissions are obliged to to have renewable energy potential of 900GW • Replacing coal plants with renewable sourcespurchase certain percentage of power from from commercially exploitable sources viz. Solar is expected to save India Rs 54,000 crore (US$renewable energy sources. Also, floor prices of energy- 750 GW, Wind power1 - 102 GW, Bio- 8.4 billion) annually due to reduced powerthe RPO have been set to provide certainty to energy – 25 GW and Small Hydro – 20 GW. As costs.companies. The floor price has been set at US$ of November 2017, the installed power capacity144 per Megawatt. of renewable energy sources (other than hydro) in the country is 60.16 GW. Out of the totalScheme for Development of Solar Parks and installed capacity, 32.7 GW is contributed byUltra Mega Solar Power Projects: Aims to wind power, 14.8 GW by solar energy, 8.30set up 25 Solar Parks and Ultra Mega Solar GW by bio-power and 4.39 GW by small hydroPower Projects targeting 20,000MW of solar power. Recognizing this potential, a target ofpower installed capacity by 2019-20. US 83.78 175 GW of renewable energy capacity by 2022million have already been sanctioned under the has been fixed. In India, there is an estimatedscheme. As of November 2017, the Ministry ofNew and Renewable Energy is conceptualising potential of about 8000MV of tidal energy.world’s biggest solar tender and will invite bids Rising Power Demand: India’s power demandfor setting up of 20 GW of solar capacity. has been rising at a fast pace. It is estimated that India will require an additional power supplyIncreasing Investments: FDI inflows and key capacity of 450 GW by 2034. The peak powerdeals demand of the country was 160 GW in July 2017. It is estimated that this demand will rise to• 100 per cent FDI is allowed under automatic 295 GW by 2021-22 and 690 GW by 2035-36.route for projects of renewable power Also, India has an electricity-GDP elasticitygeneration and distribution subject to provisions ratio of 0.8. A seven per cent growth in energyof The Electricity Act, 2003.• The non-conventional energy sector hasreceived a total FDI equity inflow of US$ 6.26billion during April 2000 to December 2017.Government InitiativesBudget 2017-18 - Ministry for New andRenewable Energy Allocation is US$ 849 .46million• National Solar Mission: Targets deploymentof 100 GW of solar power by 2022; Variousincentives are being offered under the scheme;Zero import duty on capital equipment, rawmaterials; Low interest rates and Priority SectorLending; Single window mechanism for allrelated permissions; Tax exemption and capitalsubsidies available.• Green Energy Corridor: Projectfor evacuation of renewable energy fromgeneration points to the load centres bycreating intra-state and inter-state transmissioninfrastructure; India received a US$ 1.15 billionsoft loan from German development bank KfWfor implementation of green corridors project. Spotlight on Indian Electronics 2018-19 | 130

IndianMSemairckonedtuctorIndia Electronics and Semiconductor Association (IESA) reveals that the Design & Manufacturing) Indian semiconductor component sector to look at India as their market is expected to be worth USD next destination to cater to the32.35 billion by 2025, growing at a CAGR of domestic Indian demand as well as act10.1 percent between 2018 and 2025. The as an exports hub.report reveals that India is a highly attractivedestination for global R&D centers owing Accordingly, the Government has initiated severalto the availability of talent, as well as lower initiatives for the development of electronics sectorcost, compared with the US and Western in the country. The Government has approved NationalEurope. Policy on Electronics (NPE). One of the important objectives of the NPE is to achieve a turnover of about USD 400 Billion byThe Government of India projected in 2012 2020 involving investment of about USD 100 Billion and employment tothat its ESDM (Electronics System Design around 28 million by 2020. This inter alia, includes achieving a turnover ofand Manufacturing) market value would USD 55 Billion of chip design and embedded software industry, USD 80reach USD 400 billion by 2020. The market Billion of exports in the sector. Moreover, the policy also proposes settingis expected to be driven by the growth of up of over 200 Electronic Manufacturing Clusters. Another importantmobile phones, TV, STB (Set Top Box), LED objective of the policy is to significantly upscale high-end human resourcelighting, automotive electronics, and power creation to 2500 PhDs annually by 2020 in the sector.sector/renewable energy. As part of the efforts to promote the electronics sector, India is settingIndia is the world’s second largest mobile up a semiconductor wafer fab in the country. India has become the hubphone market and boasts 7.6% of the for semiconductor design with nearly 2000 chips being designed perglobal smartphone market. The report year and more than 20,000 engineers are working in various aspects ofdiscusses that more than USD 15 billion chip design and verification. Annually India is generating nearly USD 2worth of components will be sourced Billion in revenues for the chip design services. This provides an enablinglocally by 2020. Therefore, the reportpinpoints possible short, mid, and longterm business opportunities for key playerswho are interested to enter the smartphonesupply chain in India. Electronic System Design & ManufacturingOver the last couple of decades India has been the epicenter ofconsumer demand fuelled by a phenomenal GDP growth. While demandincreased across all sectors, demand for high technology products,specifically electronic products has registered significant growth andgoing by current estimates, the demand for electronics hardware in thecountry is projected to increase from USD 45 billion in 2009 to USD400billion by 2020.The estimated production will reach USD 104 billion by the year 2020,creating a gap of USD 296 billion in demand and production. This createsa unique opportunity for companies in the ESDM (Electronic System Spotlight on Indian Electronics 2018-19 | 131

High Priority Market | Semiconductorenvironment for the semiconductor wafer fab which will come up in India. SWOT of ESDM IndustrySeveral other policy initiatives have been approved. These include Advantagesproviding very attractive financial investment in electronics manufacturingand providing preference to domestically manufactured electronic • Huge demand potential in the countrygoods in all Government procurement as well as all those electronicgoods whose use has security implications for the country. The financial • Strong design and R&D capability in select product markets; residentincentives are available not only for new units but also for units relocating design talentfrom abroad. Besides, when we speak of electronics, apart from coveringelectronic hardware products relating to IT and office automation, • Government schemes such as NKN, NOFN, and Digital India initiativetelecom, consumer electronics, electronic components, etc., India coversa wide range of products relating to verticals like solar photovoltaic, • Adequately developed EMS industry to be a significant enablerautomotive electronics, medical electronics, avionics, LED etc. To addressthe issue of infrastructure, a scheme for Electronics Manufacturing Cluster Opportunitiesprovides 50% of the cost of upgrading infrastructure and logistics as grantin aid from Government. • Huge local demand to be an influencer in attracting investmentIndia has a vast pool of innovative and talented human resource. The • Rising manufacturing costs in China leads to search for alternatehuman resource is India’s strength which India offers to an investor from manufacturing hubsabroad. India produce over 200,000 engineers every year. The countryalso proposes to enhance the number of post graduates and PhDs • Significant export potential in neighboring markets such as the MENAin Electronics so that abundant manpower is available for Electronics regionindustry to grow and flourish. • “Make in India” initiative to accelerate investment activity in core andSemiconductors demand in India is over USD 10 Billion. India also has a allied sectorsvibrant chip design industry in the country. R&D capabilities in VLSI andchip design are also exemplified by the Centre of Excellence in Nano Weaknesseselectronics at Indian Institute of Science, Bangalore and Indian Institute ofTechnology, Bombay. Electronics Segment Key Products to Drive Manufacturing till 2020 and Beyond Automotive HVAC, ECU, Airbags, ABS, AMT Consumer FPD TVs, Washing Machines, Set Top Boxes Industrial Process Machinery, Boilers, Printing Machinery, Machine Tools IT/ OA Notebooks, Desktops, Servers Mobile Phones Feature Phones, Smart Phones Telecom Media Gateways, BTS, Enterprise Routers, IP PBX Lighting LED Lighting Other Electronics Smart Cards, PoS Terminals, Medical Devices, ATMElectronics Manufacturing Industry in India • Reliance on imports for critical electronic componentsIndian Electronics System Design Manufacturing (ESDM) • Convoluted duty structure; imports cheaper locally manufactured products in select casesMarket Overview • Inadequate testing facilities and standards implementation leading toConsistent local demand for electronic products, along with increasingmanufacturing investment, is anticipated to catapult the industry into Program/Policies Impact on Electronics Manufacturinga high growth phase. Overall industry growth is also a reflection of theecosystem development. Make-in-India Investment in downstream segments creating de- Digital India mand Industry 4.0/ Smart manufacturing practices• In comparison to the global ESDM industry that exhibits below 5% year- and greater usage of electronic systems Demand for desktops, notebooks, mobile phones, telecom products Jan Dhan Yojana Boost to smart cards, ATMs, PoS terminals Swachh Bharat Automation systems, instrumentation for water and Abhiyan waste managementon-year growth trends, the Indian ESDM industry is expected to have one Domestic Efficient LED lightingof the highest growth rates, representing a CAGR of 17.5% from 2014 to Lighting Programme2020. Smart Cities and trans- IT/ OA products, automation systems, power man- portation systems agement products, automotive• The Indian ESDM industry currently characterized by the low value Modified Special To bridge the viable gap in manufacturing invest-addition is expected to witness investment in manufacturing and thereby Incentive ment levelsis likely transform to a high value-adding sector by 2020. Package SchemeIndian ESDM Industry Segments Higher Customs Duty To encourage local sourcing and ecosystem devel- on Key Products/ opment Components presence of low quality grey market goods • Debilitating Free Trade Agreements with Thailand and Japan Spotlight on Indian Electronics 2018-19 | 132

High Priority Market | SemiconductorThreats together created a conducive investment climate in India, further boosting the domestic manufacturing.• Emergence of robust manufacturing ecosystems in East Asiancountries and Mexico Electronics Manufacturing Value Chain and Role of EMS• Inadequate local manufacturing ecosystems for components and other Favourable government policies, Make-in-India initiative, and rising costsraw materials in China are the key factors for rise in local outsourced manufacturing, especially in the consumer electronics segment.• Infrastructure inadequacy for industries; lack of access to reliable powerand clean water• Depreciation of the Indian Rupee as a short term threatIndian Electronics Product MarketOriginal Equipment production (OEP) expected to grow at 1.6X theOriginal Equipment Market (OEM). Effective implementation of policymeasures is expected to be a crucial element defining the electronicproduct manufacturing market’s growth.PicIndian Consumer Electronics IndustryThe TV market represents the biggest category in the consumerelectronics market with overall penetration of 60% in the country. The India Versus ChinaManufacturing Competitiveness in China Manufacturing Competitiveness in India• Stable and substantial supply chain • On the other hand, India’s India gaining traction as a competitive alternate to China for electronicsin China with large economies of scale helped manufacturing competitiveness is set manufacturingChina maintain low costs and high margins to soar further as the economy is onproduction of electronic goods in the last two growth trajectory. Distinct Advantages Give India an Upper Handdecades. New National Policy on Electronics (NPE)• Its dominance in electronic man- • Huge electronics domesticufacturing arises from incredible government demand will be a key driver necessitat- Background – National Policy on Electronics (NPE) 2012support the stakeholders receive primarily in ing the development of local ecosystem.the form of capital subsidy and relaxation of 1. National Policy on Electronics (NPE-2012) was Notified on 19thtaxes. November, 2012.• The economy transformed into an • Growing investment and 2. Vision of NPE 2012: To create a globally competitive ESDM industry toexport destination for global electronic giants as increasing local value addition levels meet the country’s needs and serve the international market.the country supplied large qualified workers at will also see manifold jump as morelow wages. OEMs look toward localization of their 3. Under the aegis of NPE-2012, several schemes have been formulated products from India. and initiatives taken to promote entire value chain in ESDM.• As China’s economy slows down, it • Regulatory framework 4. India is a signatory to the Information Technology Agreement (ITA-1) ofstruggles with currency devaluation and rising made more investment and business WTO - Electronics is the first sector to face zero duty regimelabor wages, the ‘low-cost manufacturing’ tag friendly to attract investment throughhas started to loose its sheen, making other foreign and domestic investors. 1) BCD on the specified 217 tariff lines is zero%emerging economies, such as India, Vietnam, • India possesses superiorand Malaysia, more attractive for invest- design capabilities and availability of 2) Main categories covered: computers and peripherals, telecomment. talented workforce at approximately products, electronic ecomponents, semiconductors, semiconductor 150% lower wages than China, which manufacturing equipment and scientific instruments strengthens its position as a futuristic domestic-cum-export-oriented manu- 3) India has not signed ITA-2 facturing destination for the globe. 5. Further, India has entered into Free Trade Agreements (FTA) withappliances market is a mix of high-volume, low-value products that have Thailand, ASEAN, Korea, Japan, etc., wherein import of electronicdifferent levels of adoption across the country. hardware from these countries is at preferential duty, lower than normal tariff ratePic 6. Domestic electronics hardware manufacturing industry faces severalGrowth of Domestic Manufacturing in India disability factors:Business-friendly policies of the Government of India, stable political • high cost of power, finance and freightleadership, and turmoil in certain economies around the globe have • inadequate infrastructure • lack of supply chain • high transaction cost Spotlight on Indian Electronics 2018-19 | 133

High Priority Market | Semiconductor• inverted tariff structure, etc. Year Sub-Assembly 2016-17 (i) Charger/ Adapter, (ii) Battery Pack, (iii) Wired Headset (Implemented)These render the indigenous manufacturing 2017-18 (iv) Mechanics, (v) Die Cut Parts, (vi) Microphone and Receiver, (vii) Key Pad, (viii) USB Cableuncompetitive. (Implemented) 2018-19 (ix) Printed Circuit Board Assembly (PCBA), (x) Camera Module, (xi) ConnectorsMeasures Taken – National Policy on 2019-20 (xii) Display Assembly, (xiii) Touch Panel/ Cover Glass Assembly, (xiv) Vibrator Motor / RingerElectronics (NPE) 2012 National Policy on Electronics (NPE) 2012 Background Demand, Production, Import & Export in ElectronicsInfrastructure Production 2014-15 2015-16 % growth (YoY) 2016-17 % growth (YoY)• Modified Special Incentive Package Import 29.2 value 28 value 32 Export 37.5 37.4 9 49.5 4.6• Electronics Manufacturing Clusters & Demand 6.2 40.9 - 42.8 -Common Facility Centres 60.5 5.9 19.6 5.9 19 72.4 86.4• Semiconductor FABs Projected Demand of Electronics (Source :IESA- EY Report)• Centres of Excellence • USD 171 - 228 Billion by 2020 • USD 400 Billion by 2023-2024• Incubators 16 and Phased Manufacturing Programme entire value-chain of ESDMMarket (PMP) gave impetus to manufacturing of cellular mobile phones and its components/ 2. Improve Ease-of-doing-business for Indian• Preference to DMEPs in Government accessories. ESDM enterprisesprocurement 2. Differential duty substituted with Basic 3. Encourage Industry-led R&D and Innovation• Rationalization of Tariff Structure Customs Duty after GST vide Department of in all sub-sectors of Electronics Revenue notification dated 30.06.2017• Export Promotion 4. Support a comprehensive Start-up 3. 115 new mobile phone manufacturing ecosystem in emerging technology areas NPE• Safety Standards units and mobile components/ accessory 2018 Focus manufacturing units started during the last two• PMP for promotion of mobile and its years, resulting in employment for more than 4 5. Enhance significantly availability of skilledcomponent manufacturing ecosystem lakh persons manpowerInnovation 4. Production Growth: 6. Provide support for export -led growth• Electronics Development Fund • 2014-15 : 6 crore units valued at Rs.18,900 7. Develop core competencies in identified sub- crore sectors of Electronics sector• Technology Incubation and Development ofEntrepreneurs (TIDE) • 2015-16 : 11 crore units valued at Rs.54,000 8. Take lead in the Electronics Manufacturing crore Services (EMS) segment 9. Provide support for• Multiplier Grant Scheme (MGS) highly capital intensive projects • 2016-17 : 17.5 crore units valued at Rs.90,000• Product Specific Initiatives - India crore Aiming for 50 crore units valued at Rs. 9. Drive indigenization in the microchipsMicroprocessor, IndianCAS, NavIC, LINAC, and 300,000 crore by 2019-20. (strategic & critical infrastructure sectors)other R&D initiatives Focus Areas identified for National Policy 10. Encourage the State Governments to adopt• IPR initiatives on Electronics (NPE) 2018 the PMA policyHr Initiatives 1. Promote indigenous manufacturing in the 11. Promote research, innovation and industry for safe disposal of e-Waste• Skill Development Participation of States – National Policy• SMDP - C2SD on Electronics (NPE) 2018 - Expectations from States• PhD Scheme 1. Proactive participation from States• Electronics & ICT Academies 2. State level incentives for promotion of• Sector Skill Councils Electronics Manufacturing - Many States have already come up with their respective PoliciesNew National Policy on Electronics (NPE)2018 3. At least one flagship Technology Park in each StatePromotion of Robust Cellular mobilehandsets Manufacturing Eco-system in 4. Each State to identify Single Point of ContactIndia for Investment Promotion in Electronics1. Differential Excise Duty of 11.5% in 2015- States Partnership and way forward 1. Since it is proposed to do away with Capex Subsidy being provided under M-SIPS, suggestions are sought regarding other incentive mechanisms such as interest subsidy, credit default guarantee, etc., to encourage new units and expansion of existing units. 2. State Governments are requested to adopt the Public Procurement (Preference to Make in India) Order 2017, issued by DIPP, in Spotlight on Indian Electronics 2018-19 | 134

High Priority Market | Semiconductorprocurement of electronic goods. Electronics Manufacturing Clusters (EMC) based economies that offer promising export scheme, for supporting both Greenfield and markets for Indian electronic goods.3. Encourage domestic manufacturing of Brownfield manufacturing Clusters.electronic products and their inputs for III. Provide support for Brand-building throughsignificantly increasing value addition ix. Create institutional mechanism for Market Development Fund to promote exports implementation of various schemes/ of electronic goods.4. Provide support for infrastructure programmes under the Policydevelopment through formulation of a new Cyber Security, Mega Projects &scheme or suitable modifications in the existing Ease-of-doing-business Developing core competenciesElectronics Manufacturing Clusters (EMC)scheme, for both Greenfield and Brownfield 2. Improve ease-of-doing-business by 6. Promote the use of Secure Chips andmanufacturing clusters. streamlining the processes for ESDM Systems to reduce Cyber Security risks. enterprises in the country:5. Promote Eco-park in each State for 7. Provide special packages for Megaprocessing e-Waste in environmental friendly I. Establish Standards setting body in MeitY to Projects such as Fabrication (FAB) unitsmanner in PPP mode to integrate formal and develop standards for Electronics (including (Semiconductors, Display, LED, Solar),informal operators. Fabless Industry), IT, e-Governance, etc. including infrastructure status for FAB units.6. Development of an index for indicating II. Create/ upgrade Lab Infrastructure/ Capacity 8. Develop core competencies in the sub-status and growth of electronics manufacturing for testing of electronics and IT goods including sectors of Electronics viz., Fabless Chip Design,industry in the States and bring out a periodic Cyber Security. Medical Electronics, Automotive Electronics,report indicating ranking of States. Power Electronics, Telecommunication III. Put in place simplified clearance procedure Electronics, Surveillance Electronics andSalient Features – National Policy on for import of goods required for R&D and Strategic Electronics, etc.Electronics (NPE) 2018 design activity, including Start-ups and in emerging technology sectors. 9. Become a global leader in the ElectronicsCreating eco-system for globally competitive Manufacturing Services (EMS) segment byESDM sector: R&D and Innovation promoting progressively higher value addition in manufacturing of electronic products.1. Creating eco-system for globally competitive 3. Encouraging Industry-led R&D andESDM sector by incentivizing domestic Innovation in all sub-sectors of Electronics: Microchips Indigenization and adoption ofmanufacturing and compensating disabilities: preferential market access policy by States I. Promote path-breaking research, grass rooti. Encourage domestic manufacturing of level innovations and early stage Start-ups in 10. Drive indigenization in the microchips usedelectronic products and their inputs for emerging technology areas such as 5G, IoT/ by strategic and critical infrastructure sectorssignificantly increasing value addition by Sensors, Drones, Artificial Intelligence (AI), viz., Defence, Space, Atomic Energy, Aviation,building a comprehensive ecosystem, covering Machine Learning, Augmented Reality (AR) and Power, etc., for design/ production of suchthe entire supply chain, through suitable Phased Virtual Reality (VR), Gaming and Entertainment, microchips.Manufacturing Programme (PMP) and/or fiscal having major economic potential, with a specialinterventions. focus on applying the outcomes, including 11. Encourage the State Governments to adopt frugal solutions, to solve real-life problems. the Public Procurement (Preference to Make inii. Devise suitable methods for promotion of India) Order 2017 (PPO 2017), in procurementmanufacturing of electronic goods covered II. Provide support for setting up of Incubation of electronic goods.under the Information Technology Agreement Centres/ Centres of Excellence (CoE) in the(ITA-1) of WTO. aforesaid areas. e-Waste Managementiii. Provide support to Industry through incentive III. Provide support for Start-ups in these 12. Promote research, innovation and supportmechanisms such as interest subsidy, credit emerging areas/ technologies, from supporting to industry for green processes and sustainabledefault guarantee, etc., in order to encourage the concept to development/ prototyping of e-waste management, including safe disposalnew units and expansion of existing units. products, including the complete value chain. of e-Waste in an environment friendly manner, development of e-waste recycling industryiv. Exempt the import duty on capital equipment, Human Resource Development and adoption of best practices in e-wasteto reduce capital expenditure for setting up/ management.expansion of existing units and address 4. Provide support for significantly enhancingdisabilities to a certain extent. availability of skilled manpower in the ESDM 13. Promote Eco-park in each State for sector: processing e-Waste in environmental friendlyv. Promote a forward looking and stable tax manner in PPP mode to integrate formal andregime, including: Advance intimation to the I. Set up a National Institute of Design and informal operators.Industry to plan their investments in the form of Innovation in Electronicsphased manufacturing programmes in various Other Measuressegments of electronics. • Income Tax Holiday II. Work closely with Private Sector, Universitiesfor 10 years in a block of 15 years, including and other Institutions of learning and to design 14. Facilitate warehousing of componentsexemption from Minimum Alternate Tax (MAT). programmes to ensure availability of adequate and raw materials to reduce the lead time and• Retention/ refund of Central Goods and skilled manpower to the industry make them available just-in-time for electronicsServices Tax (CGST). manufacturing/ fabless chip design units, III. Provide support for skill development for including Start-ups.vi. Provide support for Assembly, Testing, emerging areas such as 5G, IoT/ Sensors,Marking and Packaging (ATMP) lines for Drones, Artificial Intelligence (AI), Machine 15. Develop an index for indicating status andidentified electronic components/ products. Learning, Augmented Reality (AR) and Virtual growth of electronics manufacturing industry Reality (VR), Gaming and Entertainment, at the in the States and bring out a periodic reportvii. Impose of Cess on identified electronic faculty and student levels. indicating ranking of States.goods to be considered to generate resourcesfor promotion of certain critical sub-sectors of Export Promotion 16. Develop a mechanism for National-levelelectronics manufacturing like Semiconductors/ Market Research reports on performance,Display Fabrication units. 5. Empower Indian ESDM exporters, by impact assessment of Policy interventions removing regulatory barriers and facilitating for their continuation and/or mid-courseviii. Provide support for infrastructure global market access and positioning: correction, trends, emerging areas, etc., on adevelopment through formulation of a new periodic basis, including models for successfulscheme or suitable modifications in the existing I. Improve export incentive under the innovation for all sub-sectors of Electronics. Merchandize Export from India Scheme (MEIS) of Foreign Trade Policy. II. Establish Free Trade Agreements (FTAs) for electronic goods with emerging/ consumption Spotlight on Indian Electronics 2018-19 | 135

Test and MeasurementEQUIPMENT MARKETThe Test and Measurement One key trend in the market grown over time, in tandem with the growth in the telecom sector. The Equipment market in is the need for compatibility demand for communication test and measurement solutions is on a India to grow at a CAGR of test equipment. The need rise on account of growing bandwidth demand and introduction of next of 13.24 percent over the for compatibility of test generation cellular and wireless technologies. In addition, increased R&Dperiod 2015-2019. equipment is the main focus spending in telecommunication sector coupled with growth in mobileTest and measurement equipment of T&M equipment vendors phone market have fueled market momentum. Vendors in the market areare devices used for testing and when developing new facing challenges in upgrading their integrated equipment to comply withmeasuring various electronic and products. The continuously the industry standards.mechanical products throughout evolving technology hastheir lifecycle. These devices are made the product lifecycle Key growth drivers for T&M in Indiaused in the initial design, develop- of T&M equipment short,ment, verification, maintenance, thereby requiring new T&M requirements have changed over time with the evolving standardsand repair of various electronic T&M equipment to test in the telecom industry and are always driven by two considerationsand mechanical products. Test and new technology. This has – performance and conformance of the equipment and systems tomeasurement equipment are used created a need for T&M industry standards. Performance specifications are tested as perfor testing and measuring in elec- vendors to develop new the manufacturer’s references and conformance parameters by thetronic devices such as cellphones, equipment capable of concerned standards. The industry has witnessed unprecedented growthdigital cameras, MP3 players, and testing new technologies in the past two decades and with an increasing subscriber base, thesolar inverters. and also compatible with old deployment of next-generation technologies and unprecedented data technologies. traffic, network complexity has also increased. One of the main drivers in The key growth drivers of the T&M industry are the introduction of new this market is the increase in telecom technologies, explosion of data/video services, roll-out of 4G R&D investment. Advantages services, new quality of service (QoS) demands resulting from thesuch as high growth potential and relatively low manufacturing costs help increase in call drops, conformity to radiation specifications, spectrumto bring more technological innovations through continuous R&D. management, etc.Challenges in Telecom Test & Measurement Market- As the Indian telecom T&M industry is largely global in nature and localIndia manufacturing of both terminal and network equipment is undertaken based on acquired technology, reference selling with big telecomIntroduction manufacturers determines the local revenues.The market for telecom test and measurement (T&M) equipment has The market is increasingly adopting a software-defined approach towards instrumentation, which allows expeditious upgradation of solutions as Spotlight on Indian Electronics 2018-19 | 136

High Priority Market | T&Mper changing network expected to be offloaded on to Wi-Fi networks. segregate pure-play hardware and T&M systemand technology companies.requirements. The large-scale roll-out of LTE technology has renewed interest in the T&M space with It is necessary to have efficient T&M systemsWireless equipment and operators increasingly looking to deploy capable of integrating data with different formatsnetwork testing continue advanced solutions for assessing and because without them, testing costs will remainto dominate the space addressing the complexities associated with the almost as high as equipment manufacturingwith long term evolution network. costs.(LTE), voice-over-LTE(VoLTE), QoS, scalability The demand for LTE and VoLTE testing With the introduction of next-generationand smart devices being equipment is set to grow. This has created technologies and the need for service providersthe key growth drivers. multiple opportunities for small T&M vendors to ensure superior QoS, the segment willOn the other hand, the and has helped generate rural employment. increasingly gain significance. Also there aregrowth in the optic fibre tremendous opportunities for test equipmentcable (OFC) testing The rapid evolution towards higher frequencies vendors as we are now shifting to IP/Ethernetinstruments market has and wider modulation bandwidth, coupled technologies.largely been driven by with the advent of technologies such as 5G,the increasing demand is creating growth opportunities for advanced With the introduction of next-generationfor splicing machines. T&M equipment. 5G has the potential technologies and the need for service providers to revolutionise many industries such as to ensure superior QoS, the segment willLatest trends in telecommunications, automotives, energy, increasingly gain significance.the Telecom T&M health care and more. The technology issegment in India expected to be several times faster than 4G Government has planning to set up labs and and would provide a backdrop for the billions testing centres which will go a long way inThe latest trends of devices to be connected to the internet as addressing the problems faced by operatorswitnessed in the it would boost M2M communication and the while simultaneously opening up newtelecom T&M segment internet of things (IoT) market. opportunities for T&M players in the country.are high bandwidthmeasurements, multiple- Major issues telecom T&M players Global Test and Measurementinput, multiple-output face in India Equipment Market worth 28.98testing and special Billion USD by 2023tests on LTE-advanced The T&M market is extremely price sensitive.technology. There is Test equipment companies have faced Test and Measurement Equipment Market isalso protocol testing challenges in attempting to improve test expected to grow from USD 23.51 Billion byand wide area network capabilities and reducing testing time because 2017 to USD 28.98 Billion by 2023, at a CAGR(WAN) optimisation of the excessive pricing pressure exerted by of 3.55% between 2017 and 2023. The markettesting. In addition, operators. has a huge potential for growth in variousquality tests that are end-use applications such as healthcare, ITrequired by the operator Telecom T&M players in India are and telecommunications, and automotive.before accepting mainly local subsidiaries of top The growth of the test and measurementsystems supplied by the MNCs. equipment market is driven by the increasingmanufacturer are being technological advancement toward networkingdeveloped. While we have very qualified techno-managers and communication, increased R&D spending, and industry professionals, managing a and increased penetration of modularThe inherent specialised skill-based workforce is challenging instrumentation. Moreover, the development ofcharacteristic of the in India. Further, growth in telecom following the 5G mobile network and rapid penetration of IoTT&M market is such that surge in mobile subscriptions will be dependent devices are some of the opportunities for thethe evolving telecom on innovations and disruptions. growth of the test and measurement equipmentstandards render T&M market players.equipment obsolete Another challenge that test equipment vendorsquickly. usually face is the successful provision of a Healthcare application to witness testing solution that is suited to the skills and highest CAGR between 2017 andHence, the rental market capabilities of end-users. Most companies lack 2023has gained traction as the specialised labour needed to achieve thisit allows the customer objective. Devices that can remotely monitor the criticalflexibility to switch to the health parameters at home have uplifted thelatest equipment without Compared to the legacy networks, LTE growth of patient-home-monitoring systems.incurring significant technology offers greater speeds and higher Thus, with the development of new healthcareinvestment. spectral efficiency. Consequently, testing equipment, patient-monitoring systems, and the components of a 4G network requires personal emergency reporting systems, thereImpact of 4G, Wi-Fi more comprehensive test coverage of radio is a significant growth potential for the testand fibre roll-outs frequency, protocol and system-level elements, and measurement equipment market for the& 5G promise including base stations, handsets and network healthcare or medical application. infrastructure.Globally, telecom Repair services/after sales service toservice providers are Outlook on Indian Telecom T&M grow at highest CAGR between 2017focusing on mobile industry and 2023traffic Wi-Fi offloadstrategies. It is important The growing demand for bandwidth, multiple The market for repair services is driven byto ensure that the devices and increasingly complex network a large number of innovative electronicsquality of Wi-Fi networks architecture will continue fuelling growth in the equipment reaching the commercial markets.becomes carrier-grade T&M market. The key driving factors would be Moreover, the scope of equipment repair serviceas a lot of mobile data is the explosion in telecom and data services in refurbishing electronics is further expected to in the aerospace/defence sector. The sector drive the market for repair services. may witness the emergence of specialised companies and also consolidation. This will APAC to dominate market between 2017 and Spotlight on Indian Electronics 2018-19 | 137

High Priority Market | T&M2023 Vendors are offering application-specific test increasing sale of test equipment driven by the and measurement equipment for different end- commercial deployment of the technology.APAC is a major market for various end-use users. Technological innovations and M&A willapplications, such as automotive, process further intensify the competitive environment in There will be high demand for R&D andindustries, healthcare, and consumer goods. the electronic test equipment market. monitoring solutions for LTE-U technologies.India and China are considered as huge Driven by the impact of the Industrial Internet ofmarkets for test and measurement equipment The wireless test equipment segment is Things (IIoT), LTE Cat M1 is expected to witnessowing to their growing economy. APAC is home growing steadily influenced by the evolving constant demand. Megatrend IIOT will have ato a number of OEMs as well as semiconductor telecommunication industry and the huge positive impact on this market.device and product manufacturers. The growing development of 5G technologies. Additionally,demand for test and measurement equipment smartphone manufacturers use this test Technology change is one of the challenges foris attributed to the increasing number of equipment to test their devices based on the test equipment vendors. The technologysmartphones, continuous upgrading of next- various technology formats. keeps on evolving. They have to use thegeneration telecommunication standards, technology of today to design test equipmentand so on. Moreover, the increasing demand The growing security concerns are influencing for the needs of tomorrow. For example, overfor automated electronic products acts as countries such as the US, UK, China, India, the years transition happened from 3G to 4G toan opportunity for the growth of the test and and Russia, and many more to increase LTE to LTE-Advanced and more. Test equipmentmeasurement equipment market in APAC. their investments in the defense sector. The manufacturers have to design the equipment to increasing air traffic is contributing towards the be able to test both previous and latest versionsThe major players in the test and measurement growing aerospace sector and construction of enabled with a software update. LTE-Unlicensedequipment market include Fortive (US), Rohde airports to accommodate the rising number of technologies driven by high speed access& Schwarz (Germany), Anritsu (Japan), Keysight passengers. Consequently, air carriers will also and LTE-M driven by the volume of connected(US), Yokogawa Electric (Japan), National improve their fleet and this will drive traction devices will primarily drive the communicationsInstruments (US), EXFO (Canada), Advantest to the electronic test equipment market in the test equipment market.(Japan), Viavi (US), and Cobham (UK), Teledyne aerospace and defense segment.(US), and Texas Instruments (US). Monitoring applications will face positive growth LTE, LTE-U, LTE-M Test Equipment in the forecasted years as LTE technology isOverview of the global test and Market becoming mature. North America and Asia-measurement market Pacific will face decline while rest of the world LTE-Unlicensed Technologies and and Europe will face growth in the comingThe growth in the aerospace and defense Industrial Internet of Things (IIOT) years.sector to be one of the primary factors driving will Drive Market Growththe growth of the test and measurement Global Market for Embeddedmarket in the coming years. Regions such as The global LTE, LTE-U, LTE-M test equipment Instrumentation, Forecast to 2023the US, UK, and China are facing increasing market is estimated to reach $2974 millionsecurity concerns and this results in an increase from 2017 to 2022, due to adoption of LTE-M, Internet of Things and Industry 4.0in their annual defense budget. Equipping LTE-LAA technologies. The LTE test equipment will Create Huge Market Opportunitydefense forces with advanced technologies application is segmented into four: Research for Embedded Instrumentation in thesuch as precision strike application, defense and Development, Manufacturing, Installation Futureelectronics, and cyber and intelligence and Maintenance, Monitoring. Servicegathering, drives the need for highly advanced providers, network equipment manufacturers, The demand for test & measurement equipmenttest equipment. Test equipment are required enterprises are the end users. if persistent for any type of electronic systemsto check the performance of command manufactured across industry verticals such asexecution, communication network, surveillance Consumer adoption of smartphones drives the automotive, telecommunications, aerospace,application, and computer intelligence. demand for LTE test equipment. Consumer military, consumer electronics, industrial, andThe US and UK will be the major end users desire to surf the Web on their mobile device, medical. With the exponentially increasingto the market in this sector since they are make payments via their smartphone, and use demand for reducing the size of electronicconstantly making huge investments towards mobile entertainment services, as well as the devices and increasing their functionality, intechnological advancements. concept of bring your own device (BYOD), bring hand with the semiconductor and printed circuit up the problem of limited speed and bandwidth boards (PCB) technology advancements. TheseFactors such as the rising number of mobile that service providers (SPs) are struggling factors have also increased the complexity ofusers, increasing IP traffic, and the evolution of to solve. The number of Internet-connected testing electronic devices. Traditionally, theseIoT are providing traction to the evolution of 5G devices is expected to reach 33 billion, and types of testing are done using bench-topnetworks. Several telecom operators in Europe each household will have 15 connected devices and PC-based T&M equipment via probes.and Americas are investing significantly in the by 2020. Nowadays, a large number of people Over time, the limitations of these technologiesgrowth of the 5G network. North America has have 2 or 3 mobile phones. have made intrusive testing incapable ofthe highest number of 5G subscriptions as they assessing complex PCBs, chips, chip-to-are already leading with long term evolution According to CISCO, the global network data chip interconnects, input/output (I/O) buses,(LTE) technologies that are lacking and are traffic reached 7.2 exabytes per month at the and integrated circuits (IC). Moreover, thecomplex to work with these high bandwidths. end of 2016, up from 4.4 exabytes per month at present-day chips house billions of transistorThe emergence of 5G networks will be one of the end of 2015. 4G connections accounted for gates, which have vastly increased devicethe key trends that will gain traction in the test 69 percent of the mobile data traffic. End users’ complexities, and lead to the developmentand measurement market during the next few desire to access to high speed internet will of multi-core chips, multiple dies with newyears. increase the demand for test equipment. Carrier complex packaging, and 3D ICs, making the aggregation is used to increase the bandwidth design, testing, validation, and debuggingCompetitive landscape and key vendors of the network and therefore it increases the bit process more complicated. Embedded rate. It allows the devices to receive multiple instrumentation is a non-intrusive testingThe test and measurement market is different 4G signals at once and they don’t have technology which overcomes all the limitationssignificantly fragmented owing to the presence to be on the same frequency. This is driving of traditional test equipment for testing complexof several international, regional, and local demand for LTE test equipment globally in order PCBs, chips, chip-to-chip interconnects, I/Ovendors. International vendors dominate the to ensure interoperability, mobility and high buses, and ICs. Embedded instrumentation iscompetition in terms of quality, durability, service quality. LTE-Licensed Assisted Access a concept of entrenching and enhancing thereliability, and technological innovations. (LAA) technology hit its peak in 2017 with Spotlight on Indian Electronics 2018-19 | 138

High Priority Market | T&Mcapabilities of traditional from the miniaturization of electronic devices, of these technologies than North America,external test equipment which renders testing by probes practically because it is expected to witness a hugeas an additional impossible. The evolution of chip technology in number of smart cities. The main benefits ofresource on the chip terms of miniaturization, speed and complexity these technologies are low power consumption,and/or on dedicated has also escalated geometrically. Chip-to-chip excellent penetration coverage, and lowerinstrumentation chips interconnects and I/O buses have high-speed component costs.on a circuit board for data transfer rates in term of Gbps.performing boundary LTE Cat M1 is similar to NB-IOT, but therescan test, process Radio Frequency (RF) Test and are some differences: the Cat M1 is easier tocontrol test, I/O Measurement Market implement and it offers a data rate of at leastinstrumentation test, 150 kbps, whereas NB1 offers 50 kbps. WithFPGA assisted test, and Automotive and 5G Fuel Market the expected volume of connected devices,embedded diagnostic Growth machine-to-machine communication willtest. continue to demand testing. Used for the development and manufacturingThen, through industry of products across industries, deployment of LTE-M functions on a 1.4 MHz spectrum, hasstandard access networks, and maintenance of communications a much lower bandwidth than cellular services,mechanisms, software services, radio frequency (RF) test and and enables applications in smart homes,is used to run the measurement equipment is witnessing industrial monitoring, asset tracking, healthcare,instrument and collect increasing demand due to the proliferation retail, smart cities, wearables, and muchdata for analysis. of RF technology and the emergence of more. Driven by the impact of IIoT, LTE CatBoundary scan test disruptive concepts such as the connected M1 is expected to witness constant demandhas been used since car in the automotive industry and 5G. With the throughout the forecast period.the early 1990s, and smart mobility concept, and new cellular andis accepted as a Wi-Fi standards including 4.5G, 4.9G, 5G and LTE-U Spectrum Fuels Market Growth Due tofundamental embedded 802.11ax, RF test equipment will be in high High Spectral Efficiencyinstrumentation demand over the next 5 to 7 years. This will betechnology and as a compounded by increasing demand from the Unlicensed technologies consist of LTE-U,very effective tool for medical devices industry. Internet of Things Licensed Assisted Access (LAA), LTE WLANcovering structural (IoT) standards, including NB-IOT, BLE, LTE-M, Aggregation (LWA), and MulteFire technologies.faults. The IEEE and LoRa, will also offer revenue opportunities LTE-LAA combines LTE in unlicensed spectrum1149.1 Boundary Scan for highly cost-effective solutions to test IoT with LTE in the licensed band by using carrierStandard was initially devices. aggregation. This aggregation of spectrumdeveloped to test the provides faster data rates and a moreelectrical continuity LTE-Unlicensed Technologies and responsive user experience. LAA is key toof interconnections Industrial Internet of Things (IIoT) to deploying 5G and leveraging a combination ofbetween ICs on boards, Drive Market Growth both licensed and unlicensed spectrum, whichmodules, and other uses higher frequency bands on small cellsubstrates. The global Long Term Evolution (LTE), LTE- architecture. This technology will play a vital role Unlicensed (LTE-U), and LTE Machine-to- in 5G, and will strongly drive the test equipmentEmbedded Machine (LTE-M) test equipment market market for LTE.instrumentation is a includes test equipment used throughoutsoftware-based testing the lifecycle of LTE technologies’ research & LAA technology hit its peak in 2017, withsolution, with very less development (R&D), manufacturing, installation increasing sales of test equipment, driven byhardware intervention. and maintenance (I&M), and monitoring the commercial deployment of the technology.The embedded applications. LTE technology has reached its LAA is preferred to licensed spectrum, astesting architecture mature stage, resulting in a declining market licensed spectrum is expensive and limited andis also embedded since 2014’ a high single-digit decline can be LAA offers the benefit of throughput boost inwith the system expected in the coming years. There will be unlicensed spectrum while supporting gigabitarchitecture at the chip adoption of LTE in Latin American and African LTE. There will be high demand for R&D andlevel and accessed countries. LTE-U technology will be in demand, monitoring solutions for LTE-U technologies, asthrough software for as cellular networks are trying to offload traffic there is a high requirement for protocol testing.performing tests. On from their networks by making use of thethe technology front, bandwidth available from unlicensed networks. Commercial deployment of LTE-LAA isit has been observed happening in the United States, which isthat test solutions have Key growth drivers: NarrowBand Internet driving demand for conformance and networkwitnessed a shift from of Things (NB-IoT) and LTE Cat M1 Enabling performance testing. With 1-GB phones allhardware- to software- Machine-to-Machine Communication will Drive over the world using multiple technologies,based strategies. LTE Test Equipment Market Growth. such as carrier aggregation, multiple input multiple output (MIMO), high-speed modulation,The most important NB-IoT or LTE Cat NB1 and LTE Cat M1 are and 1-GB devices with the latest technologyadvantage is that used to accommodate IoT-enabled devices employing a carrier in the licensed band andsoftware-based with low data requirements. These technologies multiple carriers in the unlicensed band tosolutions are far are expected to dominate the Low-power achieve a high throughput, there will be amore flexible. The WAN (LPWAN). The big advantage of these significant drive for unlicensed technologies inmajor initiative for technologies is that deployment does not the next 3–5 years.the paradigm shift require any installation of new equipment.toward a probe-less It simply needs a hardware and software Key Conclusionstesting solution stems upgrade to existing technology. Demand for these technologies has been ramping up since Demand from R&D and manufacturing 2017, and is expected to continue for the next applications in the LTE test equipment market 5–6 years, driven by technology demand. is expected to significantly reduce over time, as Asia-Pacific is expected to see more adoption LTE technology is mature; however, monitoring applications are expected to significantly Spotlight on Indian Electronics 2018-19 | 139

High Priority Market | T&Mincrease in the next 6 years. There will be the regulatory issues against performing which specializes in Asset Reliability consultingmore decline in the North American LTE test inspections directly on the airport apron area. provides an integrated suite of services toequipment market, as demand is shifting to 5G raise the asset management capability of theand customers have been using LTE since the • Another area where drones find application customer. It helps in supporting productionadvent of the technology. Europe is a significant is the inspection of wind turbine rotor blades processes, quality control, regulatoryregion of LTE-M market, as the technology at offshore locations in the power generation compliance, as well as plant maintenance anddominates in this region. Market demand in plants. As their operation and maintenance co scheduled shutdown inspection.Asia-Pacific will reduce for LTE technology, while sts can account for approximately 26.6% ofit will increase for LTE-M, as the technology is the total cost of power generation, an increase • From the perspective of the big players in thesupposed to root strongly in the region. in their O&M efficiency through condition NDT Equipment industry, companies such as monitoring is expected to have a significant GE are investing in corrosion management asKey demand drivers for the LTE test equipment positive impact on the revenue. a part of top asset management focal area formarket are technologies such as LTE-U the oil and gas sector. As a part of GE’s Predixspectrum, carrier aggregation, MIMO, NB-IoT, • Currently drones are being used for visual and platform, it released PCM software to manageand LTE Cat M1. LTE-U and LTE-M technologies thermo graphic inspections of the wind turbines corrosion of pipes and vessels predicatively.will face high demand in the next 6 years. for structural condition monitoring of the internalChallenges faced by the test equipment blades built from the glass fibre laminates. There are clearly interesting times ahead forvendors include constant technology change Drones are also used for radiation monitoring in the global NDT equipment industry, despiteand demand for lower test costs from users. Nuclear plants. the challenges, there are many exciting opportunities. The upward growth trends andLatest Technology Trends in the Non- Interface of NDT Equipment with rapidly evolving technologies are expected toDestructive Test Equipment Market asset reliability and eventually asset benefit both the equipment manufacturers and performance management software suppliers along with the end-users.Drones and Crawling Robots The non-destructive testing is used for Global Used, Rental, and LeasingCLAWAR also known as walking or crawling ensuring asset reliability and integrity for Analytical Equipment Marketrobots are used for corrosion inspection controlling the manufacturing process, asof the above-ground storage tanks (ASTs) asset reliability coupled with user friendly Though R&D Cost Efficiency willand different off-shore locations where it is software, performance, quality control, Sustain Demand, Rent-a-lab willnearly impossible for any human intervention. robotics and automation is one of the major Prove a Challenging AlternativeThese fast and cost effective robots which factors responsible for driving the market. Business Modelare equipped with NDT sensors such as Currently, there is a rising need for extendingImpedance tomographic and thermographic the life of aging assets and running them at End-user verticals have traditionally used thesensors, use permanent magnets as an high capacities, as the combination of asset outright purchase model to purchase analyticaladhesion mechanism for crawling over the performance management software and Non- instruments. As analytical instruments find long-steel tanks. They are used for remote visual destructive testing has helped companies in term use in research applications, the purchaseinspection in oil and gas pipelines, nuclear, achieving various goals such as: option can be justified. This option also holdmining, aerospace and defence, and power well for companies with large a CAPEX. But howgenerator sectors. The global drone and robotic 1. Maximization of plant life and availability will small and midsize companies or companiesmarket has tremendous growth potential, with with either a low CAPEX or delayed fundan estimated market size of $81.4 billion by 2. Cost optimization of the inspection, allotment for an urgent project procure analytical2022. maintenance and repair instruments? This is where used, rental, and leased analytical instruments lend a hand. The• Oil and gas industry is planning to increase 3. Meeting the safety, environmental and used, rental and leasing market’s offering ofthe investment in drones and robotics to reliability requirements analytical instruments improves customers’approximately 28% from the current 15%, in next productivity and offers the advantages of third-4-5 years. In the oil and gas industry, drones are 4. Training of the equipment owners and the party analytical services.used to detect structural weakness and heat operatorsloss to identify a potential leak in the pipeline. The used, rental and leasing analyticalThey find a wider range of applications in the 5. Undertaking the design reviews instruments market generated $1,649.3 millionupstream part in comparison to midstream and in 2017, with the base year growth rate of 6.8%.downstream. 6. Assessing the in-service damage The market is set to grow further, as various verticals are grappling with funding issues,• One of the key challenges faced by the oil • With the asset performance software, users in addition to regulatory factors pertaining toand gas industry is cost savings, as most of can collect data from various assets using environmental and food safety. However, newthe inspections are carried out whilst the asset sensors and take and use the data analytics business models (e.g., virtual R&D) could haveis stationary, for example live flare. The cost of platforms to compile this data from different a negative impact on market growth.shutting down a plant for the sake of inspection sources. They can also apply analytical modelscan run to million dollars per day. Thus with the to this data for failure prediction of criticalhelp of robots and drones, the plant is required equipment components and use the informationto shut down only in case of an abnormality to prioritize maintenance activities.found in the data collected by the robots ordrones. • While many end users realize the benefits of digitization, they may not have the personnel• Some of the top players in drone services to make meaningful analyses. They need helpfor oil and gas industry are Airware, SkyX, ING and are turning to asset integrity managementRobotic Aviations, Cyberhawk, Terra Drone, and suppliers to accelerate their digitization efforts.liquid robotics. This trend for more end users to “digitize” operations is driving growth in the market.• In the Air-force and Defence sector theMROs such as AFI KLM E&M are starting to • Companies such as Intertek, Applus RTD,deploy robots and drones for final inspection Mistras, Oceaneering International Inc. andof aircraft engines post overhauling. However, Force Technology are providing Asset Integritytheir widespread adoption is hampered by Management and lifecycle management support to different end-user verticals through various activities such as conception, design, construction, commissioning, operations, and decommissioning phases. Bureau Veritas Spotlight on Indian Electronics 2018-19 | 140

ArtificialIMnaterklliegtenceThe artificial intelligence market is expected to reach USD 190.61 and NLP technologies in finance, agriculture, marketing, and law Billion by 2025 from USD 21.46 Billion in 2018, at a CAGR of applications in APAC. Moreover, the presence of major players in 36.62%. The market growth is mainly driven by factors such the artificial intelligence ecosystem results in the increasing adoption as the increasing adoption of cloud-based applications and of these systems in APAC.However, the limited number of industryservices, growing big data, and increasing demand for intelligent virtual experts for artificial intelligence is a major restraint for the market.assistants. The major restraint for the market is the limited number of AItechnology experts. The key players in this market focus on organic growth strategies, such as product launches, to expand their business and relatedOn the basis of technologies, the artificial intelligence market has been offerings. Some of the players in this market are Intel (US), NVIDIAsegmented into machine learning (ML), natural language processing (US), Xilinx (US), Samsung (South Korea), Facebook (US), Micron(NLP), context-aware computing, and computer vision. The market for Technology (US), IBM (US), Google (US), Microsoft (US), and AWS (US).computer vision is expected to grow at the highest CAGR. The growingadoption of computer vision in autonomous and semiautonomous AI Technologies Will Be in Almost Every New Softwareapplications in various industries, such as manufacturing and automotive, Product by 2020is propelling the growth of this technology in the AI market. Market hype and growing interest in artificial intelligence (AI) are pushingThe market has been segmented on the basis of end-user industries established software vendors to introduce AI into their product strategy,into healthcare, manufacturing, automotive, agriculture, retail, security, creating considerable confusion in the process. Analysts predict thatmarketing, human resources, law, and fintech. Of all the end-user by 2020, AI technologies will be virtually pervasive in almost every newindustries, the market for manufacturing is expected to grow at the highest software product and service.CAGR during the forecast period. Increasing data volume derived fromthe manufacturing value chain has led to the involvement of AI-enabled In January 2016, the term “artificial intelligence” was not in the top 100data analytics in the manufacturing sector. search. By May 2017, the term ranked at No. 7, indicating the popularity of the topic and interest from Gartner clients in understanding how AIOn the basis of geography, the artificial intelligence market has been can and should be used as part of their digital business strategy. Gartnersegmented into North America, Europe, APAC, and RoW. The artificial predicts that by 2020, AI will be a top five investment priority for more thanintelligence market in APAC is expected to grow at the highest CAGR. 30 percent of CIOs.This growth can be attributed to the increasing adoption of deep learning “As AI accelerates up the Hype Cycle, many software providers are looking to stake their claim in the biggest gold rush in recent years,” said Jim Hare, at Gartner. “AI offers exciting possibilities, but unfortunately, most vendors are focused on the goal of simply building and marketing an AI-based product rather than first identifying needs, potential uses and the business value to customers.” AI refers to systems that change behaviors without being explicitly programmed, based on data collected, usage analysis and other observations. While there is a widely held fear that AI will replace humans,Spotlight on Indian Electronics 2018-19 | 141

High Priority Market | AIthe reality is that today’s AI and machine learning technologies can and India with revenue of over $500 million, found that around 58 percent havedo greatly augment human capabilities. Machines can actually do some gone beyond pilot and test projects and are adopting the technology atthings better and faster than humans, once trained; the combination of a larger scale. The number of Internet users in India is expected to reachmachines and humans can accomplish more together than separately. 500 million by June 2018, it’s the second largest online market in the world.To successfully exploit the AI opportunity, technology providers need tounderstand how to respond to three key issues: At 160 million WhatsApp users, we having a generation of people who skipped any computer learning and straightaway became mobile1. Lack of differentiation is creating confusion and consumers of the internet.delaying purchase decisions Let’s begin with data. AI functions are directly proportional to the amountThe huge increase in startups and established vendors all claiming to of data and the kind of data fed into the system. In the case of India, theoffer AI products without any real differentiation is confusing buyers. More largest database is built with Aadhaar - 99 percent of India’s population -than 1,000 vendors with applications and platforms describe themselves a staggering 1.19 billion records. Aadhaar is the world’s largest biometricas AI vendors, or say they employ AI in their products. ID system and India’s first foray into scaled up technology has no precedent. And this is precisely why the Aadhaar comes with its own setSimilar to green washing, in which companies exaggerate the of unique challenges.environmental-friendliness of their products or practices for businessbenefit, many technology vendors are now “AI washing” by applying the The first challenge is how much of the data is personal? Does a collectionAI label a little too indiscriminately. This widespread use of “AI washing” is of retinal scans and finger print breach the right of privacy? Aadhaar isalready having real consequences for investment in the technology. mandatory for one service after another - phone numbers, ration cards, bank accounts, income tax filing. All of the interlinked data will be availableTo build trust with end-user organizations vendors should focus on to government to garner insights using AI. In the larger scheme of things,building a collection of case studies with quantifiable results achieved this data will be linked to hospital records, land records, purchases, thisusing AI. “Use the term ‘AI’ wisely in your sales and marketing materials,” could be made visible or sold to interested parties, legally or illegally.Mr. Hare said. “Be clear what differentiates your AI offering and whatproblem it solves.” The second challenge is of course, security. It is impossible to create a non-hackable system. Aadhaar opens up a minefield of security lapses,2. Proven, less complex machine-learning capabilities where the hacked data can be used to cause harm to a person or society.can address many end-user needs As pointed out by media, there have been lapses in the past wherein the data has been leaked or sold or hacked into. The government needs toAdvancements in AI, such as deep learning, are getting a lot of buzz but make stricter laws and plug in loopholes when it comes to Aadhaar data.are obfuscating the value of more straightforward, proven approaches.Gartner recommends that vendors use the simplest approach that can do The third and yet unseen challenge is the moral implications of usingthe job over cutting-edge AI techniques. AI, because there is no universal right or absolute wrong in this case. Every case differs from the other. This is the most difficult challenge of3. Organizations lack the skills to evaluate, build and all, because there is limited data to study the new scenarios that willdeploy AI solutions be originating when AI will be using countrywide data to garner insights.More than half the respondents to Gartner’s 2017 AI developmentstrategies survey indicated that the lack of necessary staff skills was the Let’s take the case of linking Aadhaar to medical records. Intop challenge to adopting AI in their organization. times of disasters, floods, fires, train accidents - fingerprint identification and medical history of a patient available to aThe survey found organizations are currently seeking AI solutions that can medical profession will be the factor determining life andimprove decision making and process automation. If they had a choice, death. Analyzing the cases of particular diseases in amost organizations would prefer to buy embedded or packaged AI specific region, could help predict epidemics before theysolutions rather than trying to build a custom solution. break out.“Software vendors need to focus on offering solutions to business Websites and apps query people if they are willing to shareproblems rather than just cutting-edge technology,” said Mr. Hare. crash data with developers to better the systems over a period“Highlight how your AI solution helps address the skills shortage and of time. Will hospitals give out similar consent forms to peoplehow it can deliver value faster than trying to build a custom AI solution if they are willing for their data to be used in analyzing patientin-house.” records by AI to look for insights that have escaped the human eye.Gartner Personal data is a double-edged sword.How ready is India for artificial intelligence? Enterprises and governments can make use of data for a variety of scenarios when itThe allocated Rs 3,073 crore will spearhead work on fifth generation helps people, but cases of blatanttechnology startups like Artificial Intelligence, Machine Learning (ML), misuses will also be flaringInternet of Things (IoT), 3D printing and Block chain. The magnanimity of up in huge numbers.effort can be gauged by the near doubling of the fund for the programme. Medical records ofAtal Innovation Mission can give Rs 10 crore to start-ups that fit the employees help ancriteria. In all, Rs 200 crore has been allocated in 2017-18. India is ready organisation in timesto take the AI-assisted leap of faith, with pre-meditated outcomes for of emergency carebefore, during and after the leap. for employees with medical histories,The oncoming revolution has to go through mountains of paperwork, like heart conditionmaze of data silos, and murky data lakes before any form of AI can begin or diabetes. Butto make sense of the haphazardness that is India. Let’s tackle some the same dataimportant questions when it comes to these futuristic technologies. can be used for discriminating againstWhere do we stand now? employees that have aThe next generation of technology is seeing exponential growth. Theoverall picture is blurry though, due to the extremes we need to benavigating. To crunch some numbers, according to reports, there aremore than 200 AI-based start-ups in India.In a March-June 2017, a Capgemini survey of nearly 1,000 companies in Spotlight on Indian Electronics 2018-19 | 142

High Priority Market | AImedical condition like mental health issues or in-house talent to cater to the exceeding AI is throwing up opportunity for entrepreneurs.HIV-AIDS. demand for skilled professionals. India could have a very large role to play, all theWhat needs to be done for Start-ups can provide better pieces are in place, it has a great opportunity,enterprises to adopt AI solutions? solutions for AI projects and is up to India to either succeed or fail.Create secure, usable, scalable data India has a great scope for start-ups that work Recognising the potential and the fact that in the AI space. Due to the small size of a India doesn’t want to miss the bus on AI, theData is the smallest and most important unit team of dedicated resources involved with a government has beginning to take steps.of an AI system. AI is all set to revolutionise project, there is better coordination betweenmanufacturing, transport, healthcare, finance the UI/UX designers, architects, developers, Finance minister Arun Jaitley announced aand retail to name a few. But, the biggest data scientists and the client. A smaller team national programme on AI to be spearheadedproblem in India, across industry verticals, is also means shorter turn-around time for by Niti Aayog. A high-level committee headedthe severe paucity of usable data. We need to agile requirements of the client. Feedback by Niti Aayog vice chairman Rajiv Kumar hascreate a system to convert records on paper can be incorporated faster into the solution. been formed to lay out a roadmap for India’sto create data lakes for Machine Learning Smaller teams lead to ownership among team research and development on AI and its(ML) to take over from humans. ML will start to members who are aware of the bigger picture applications with the idea to counter China’sanalyse data, and then an AI-enabled system and their contribution to it. The absence of a commitment towards AI. China has alreadylearns by itself and provides actionable insights. defined protocol and time-taking processes prepared a three step roadmap to become theThe mindset needs to shift from find and fix leads to a fluid work environment where the world leader in AI by 2030.mentality to that of a preventive maintenance. client can work closely with the team working on the AI solution. Separately, the ministry of electronics and ITThe major barriers to storing data digitally is has also set up four sub-committees on AIlack of trust, time, and the inertia to shift from Innovate to study aspects such as legal, regulatoryexisting systems. Digital data is not considered and Cyber security. A Ministry of Commercetamper-proof. Take real estate for example. You There are many start-ups in India creating commissioned task force on AI for India’shave to get a stamp paper to a registrar, and chat-bots, financial solutions and medical economic transformation, headed by Vget the documents in your name. For smaller scan solutions. But what will really give Indian Kamakoti, a professor of computer science attransactions too, a paper bill is preferred over companies an edge is their ability to find out AI IIT Madras, has made its recommendationsan email. solutions specifically suited to solve in-house to the government. Soumitra Dutta, till recently problems. the Dean of the Cornell SC Johnson College ofA majority of all our transactions are physical. Business said that AI presents an opportunityWe need a simplified, encrypted digital A NLP chatbot can bridge the language gap for India to establish a leadership in the world oftransaction system that is easy to adopt. between the English knowing and non-English technology, which it has lost today adding thatGovernment departments - legal, transport, knowing population of India by having multi- the digital economy globally is dominated bymedical, educational - carry majority on their language support. Using AI to recognise American and Chinese companies. handwriting across different languages in India transactions on paper, creating silos will simplify data entry and help in creating “If you go back 25 years, India disrupted the after silos of static, non-usable a clean data lake. Currently, most websites software model, and created big companies data. The existing data is support the Roman keyboard, alienating such as, Infosys and Wipro. But India missed not centralised, creating a millions of Indians from using the internet. the Internet and mobile disruption. AI provides disorganised data maze that Native language support on the rail bookings the next disruption for India to create the global is impossible to navigate. app will save the time and energy wasted in giants,” he said. The digital revolution traveling to a railway station to book tickets. needs to first start creating A study by Accenture says AI could add $ 957 organised, usable, AI can create a transparent system and bring billion to the Indian economy or increase the accessible data. on a revolution in agriculture. Providing real time country’s income by 15% in 2035 by changing selling price of crop across nearest markets, the nature of work to create better outcomes. Create the ecosystem cost-analysis of transport to farther markets, to train AI professionals prediction for market rates in coming weeks and months, route-map for nearby storage units Around 4,000 positions in can all be fed into a centralised system and the field of AI are vacant in provided to farmers. Peer to peer discussions, India due to the insufficiency best practices, weather updates, tractor rentals of talent. Kelly OCG India - there is a lot that an AI enabled solution made reported that India would see a for India can achieve. The start-ups in India are 60 percent rise in demand for AI fully aware of the shortcomings and work with it and ML professionals by 2018. It’s to evolve AI solutions that are India ready. difficult for Indian companies to attract talent from outside the country. Opportunity for India to leap ahead of others in AI capabilities Educational institutes need to scale up and be better equipped for India has an opportunity to create a locally the changing demand for designed Artificial Intelligence plan that would new technologies. A change work for its needs and help nurture world- in curriculum as well as dominating companies specialising in this opening new colleges, emerging field. So far, the country is seen as specifically dedicated to lagging behind the US and China in building higher studies in the fields capabilities in AI due to the lack of large internet of Machine learning, Big companies that harness data of users. However, data, Cloud computing, growing investments across sectors in building Blockchain and AI is the data-based businesses and the recognition by need of the day. We the government to create enabling policies for need to start to develop Spotlight on Indian Electronics 2018-19 | 143

IACnuodtmuosptornyentsIn Brief 3. Reduction in excise duties in motor vehicles sector to spur the demand 1. Robust growth: Over the last decade, the automotive for auto components components industry has registered a CAGR of 14 per cent and Export Opportunities has scaled three times to US$ 43.5 billion in 2016-17 while exports 1. India is emerging as global hub for auto component sourcinghave grown at a CAGR of 14 per cent to US$ 10.9 billion. 2. Relative to competitors, India is geographically closer to key automotive markets like the Middle East & Europe2. Rising indigenization: The growth of global OEM sourcing from Competitive AdvantageIndia & the increased indigenisation of global OEMs is turning the country 1. A cost-effective manufacturing base keeps costs lower by 10-25 perinto a preferable designing and manufacturing base. cent relative to operations in Europe & Latin America 2. Presence of a large pool of skilled & semi-skilled workforce amidst a3. Increasing turnover: The Indian auto-components industry is strong educational systemexpected to register a turnover of US$ 100 billion by 2020 backed bystrong exports ranging between US$ 80-100 billion by 2026. 3. 3rd largest steel producer globally hence a cost advantage Policy Support4. Contribution to GDP and employment: The auto- 1. In September 2015, Automotive Mission Plan 2016-26 was unveiledcomponents industry accounts for almost seven which targets a fourfold growth for the sectorper cent of India’s Gross Domestic Product 2. Strong support for R&D & product development by establishing(GDP) and employs as many as 19 millionpeople.5. Growing automobile industry: India isexpected to become the 4th largest automobilesproducer globally by 2020 after China, US &Japan. The auto components industry is alsoexpected to become the 3rd largest in the worldby 2025.6. Electric vehicles push: The auto-components industry is expected to follow OEMsin adoption of electric vehicle technologies.The global move towards electric vehicles willgenerate new opportunities for automotivesuppliers. The mass conversion to electricvehicles may generate a US$ 300 billiondomestic market for EV batteries in India by2030.*Advantage IndiaRobust Demand1. Growing working population & expanding middle class are expected toremain key demand drivers2. India is set to break into the league of top 5 vehicle producing nationsSpotlight on Indian Electronics 2018-19 | 144

High Priority Market | AutocomponentNATRiP centres 2026.3. 100 per cent FDI allowed under automatic route for auto componentsector 4. Growth of the domestic auto components industry is expected to reach 9-11 per cent in FY18 on the back of high growth expectation in domesticMarket Overview passenger vehicles (PV) and two-wheelers (2W) segments.Product SegmentsOrganised and Unorganised Sector Export Growth1. The number of manufacturing units in the unorganised sector are farhigher than those in the organised one 1. India’s exports of auto components increased at a CAGR of 9.962. Although lesser in number, the organised sector accounts for 85 per per cent, during FY09-FY17, with the value of auto component exportscent of total industry turnover (FY17) increasing from US$ 5.1 billion in FY09 to US$ 10.9 billion in FY17.3. India auto component aftermarket is expected to grow at 10.5 per centto touch US$ 13 billion by 2019-20, as compared to US$ 8.4 billion in 2. Europe accounted for a volume share of 35 per cent during FY17 in Indian auto component exports followed by Asia and North America with 2016-17. 27 and 26 per cent respectively in the same year. Production 1. Engine parts Recent Trends and Strategies accounts for 31 per cent of the entire Trends product range of the auto components Global components sourcing hub sector followed by drive transmission & 1. Major global OEMs have made India a component sourcing hub for steering parts (19 per their global operations cent) 2. 2 wheelers is the 2. Several global Tier-I suppliers have also announced plans to increase largest domestic procurement from their Indian subsidiaries customer segment for the auto components 3. India is also emerging as a sourcing hub for engine components, with industry OEMs increasingly setting up engine manufacturing units in the country 3. Original Equipment Manufacturers (OEMs) 4. For companies like Ford, Fiat, Suzuki & General Motors, India has dominate production established itself as a global hub for small enginesvolumes by market range; encouragingly, exports account for around 28per cent. 5. Varroc Lighting Systems (VLS) is supplying the complete exteriorRobust Growth lighting solutions for Tesla Model S sedan and the Tesla Model X1. Revenues have risen from US$ 26.5 billion in FY08 to US$ 43.5 billion in crossover.FY17 at a CAGR of 5.66 per cent during FY08-17.2. The market size for auto component sector increased by 11.5 per cent Improving product-development capabilitiesreaching to US$ 43.5 billion in FY17 from US$ 39 billion in FY16.3. As per Automobile Component Manufacturers Association (ACMA) 1. Increased investments in R&D operations & laboratories, which are being set up to conduct activities such as analysis, simulation &forecasts, automobile component exports from India are expected to engineering animationsreach US$ 70-billion by 2026 from US$ 10.9 billion in FY17. The Indianauto component industry aims to achieve US$ 200 billion in revenues by 2. The growth of global OEM sourcing from India & the increased indigenisation of global OEMs is turning the country into a preferred designing & manufacturing base 3. ACT established to offer technical services to ACMA members for enhancing process & quality abilities through various cluster programmes 4. Faurecia, a global automotive equipment leader, has partnered with Indian Institute of Science (IISc) to develop new technologies and solutions in three areas viz. online air quality monitoring, data analysis and algorithms for driver behaviour and artificial intelligence for industrial design. Inorganic route to expansion 1. In September 2017, Auto component maker Spark Minda acquired EI Labs India at a cost of US$ 1.01 million to help integrate technology into its existing range of products. 2. Ansysco Anand collaborated with Japan’s Seiken Chemical to sell coolant & brake fluids in Japan 3. At a cost of US$14 million, Bharat Forge acquired US based - WFT & PMT Holding Inc., for expanding their product portfolio in automotive and other industrial segments 4. In May 2017, Pricol announced its plans to acquire PMP Auto Components as the brand is focusing on expanding in North American & European markets. Pricol has inked an exclusive agreement to acquire the entire ownership in wiping systems business, including PMP’s manufacturing facilities. 5. In October 2017, Precision Camshafts acquired precision component maker MEMCO Engineering to scale up its business and diversify into a new product range. 6. In January 2018, Samvardhana Motherson (SAMIL) acquired MS Global India, from MS Group of Korea. The acquisition will help SAMIL enter a new vertical and will create other synergies. Strategies Adopted New strategies 1. Auto component suppliers are focused on entering new vehicleSpotlight on Indian Electronics 2018-19 | 145

High Priority Market | Autocomponentsegments & manufacturing new products with higher margin 3. Policies such as Automotive Mission Plan 2016-26, Faster Adoption2. Both Indian & global manufacturers are investing in new capacities & & Manufacturing of Electric Hybrid Vehicles (FAME, April, 2015), NMEMnewer programmes, in order to get long term advantage 2020, likely to infuse growth in the auto component sector of the country.3. As markets in North, West & South are getting saturated, componentsmakers are now focusing on untapped market like the Northeast region of Growth in the Automobiles Sectorthe country.4. Mergers and acquisition activity and private equity investments in the Opportunitiesautomotive sector in the first quarter of FY18 stood at US$ 91.65 million.Diversification Domestic and Exports Markets hold huge potential1. Many Indian firms specialising in only one product market or segment& are looking forward to diversify horizontally in other segments like The domestic market is expected to account for 71 per cent of total sales2-wheelers, passenger cars or commercial vehicles. by 2021 with a total market size of US$115 billion.2. They are stepping up their product development capabilities in order tohave the best chance of capturing growth opportunity. Exports will account for as much as 26 per cent of the market by 2021.Capacity1. India’s projected production is around 8.7mn passenger vehicles per Market Potential Balanced across Product Typesyear by 2020 (with most of them being compact cars)2. Many MNC’s like Ford, Hyundai, Toyota & GM are launching new 1. Both domestic & export markets are almost similar in terms of potentialvehicle models due to their earlier success in the Indian market. share by different product types. For example, Engine & ExhaustR&D facilities components, along with Body & Structural parts, are expected to make1. Looking at the opportunity many global suppliers for example Bosch up 50 per cent potential domestic sales as well as exports in 2020Chassis Systems, Tenneco & Faurecia have established R&D facilities inIndia to adapt global designs & develop new products 2. Transmission, Steering components, Electronics & Electrical parts are2. Increasing investments in R&D also assists companies in setting up likely to be the other key products.laboratories, new facilities to conduct analysis, simulation & engineeringanimations. Opportunities in Engineering Products3. Global automotive seating leader Adient is planning to open India’slargest-ever auto seating prototyping and testing facility in Pune by 2018. Engine and engine parts4. Automotive component manufacturer Schaeffler AG has announcedsetting up of a manufacturing plant along with an R&D unit in Talegaon at 1. New technological changes in this segment include introduction ofan investment of US$ 31.1 million. turbochargers & common rail systems5. In January 2018, auto components manufacturer Spark Mindainaugurated a technical centre which will nurture innovation and help the 2. The trend of outsourcing may gain traction in this segment incompany move towards electrified mobility solutions. the short to medium termGrowth DriversDemand-side drivers Transmission and steering parts1. Robust growth in domestic automotive industry 1. Share of the replacement2. Increasing investment in road infrastructure market in sub-segments3. Growth in the working population & middle class income to drive the such as clutches is likelymarket to grow due to risingSupply-side drivers traffic density1. Competitive advantages facilitating emergence of outsourcing hub2. Technological shift; focus on R&D 2. The entry ofPolicy support global players1. Establishing special auto parks & virtual SEZs for auto components is expected2. Lower excise duty on specific parts of hybrid vehicles to intensify competition in sub-segments such as gears & clutches Suspension and braking parts 1. The segment is estimated to witness high Spotlight on Indian Electronics 2018-19 | 146

High Priority Market | Autocomponent replacement regulations. demand, with players maintaining 4. Schaeffler India, the Indian arm of Germany’s automotive and industrial a diversified parts maker, is planning to invest Rs 300 crore (US$ 46.66 million) per customer base in annum over FY18-19. the replacement & OEM segments 5. Major auto component firms such as Krishna Group, Minda Industries, besides the export Lumax Industries, Subros Ltd, etc are planning to invest over US$ 233.31 market million over the next 2-3 years. 2. The entry of 6. Exhaust system and ride control major, Tenneco Automotive India is global players is going to set up a greenfield facility in Gujarat by investing US$ 6-8 million likely to intensify in different phases. competition in sub- segments such as 7. American company Cummins is planning to manufacture automotive shock absorbers battery packs in India. The company has already made investments of over US$ 1 billion in India in the past five years. Equipment 8. Sixteen companies are going to set up auto component units in Andhra 1. Companies Pradesh with an investment of US$ 737 million which are expected to operating in the create over 6,500 jobs. replacement market are likely to focus Favourable Policy Measures Aiding Growth on establishing a distribution network, Auto Policy 2002 brand image, product portfolio & 1. Automatic approval for 100 per cent foreign equity investment in auto pricing policy component manufacturing facilities. Electrical 2. Manufacturing & imports are exempt from licensing & approvals. 1. Manufacturers NATRiP are expected to benefit from the 1. Set up at a total cost of US$ 388.5 million to enable the industry to growing demand adopt & implement global performance standards. for electric start mechanisms in the 2. Focus on providing low-cost manufacturing & product development 2 wheeler segment solutions. Others (Metal Dept. of Heavy Industries and Public Enterprises Parts) 1. Created a US$ 200 million fund to modernise the auto components 1. Metal part industry by providing an interest subsidy on loans & investment in new manufacturers plants and equipment.are likely to benefit from rising demand for body & chassis, pressure diecastings, sheet metal parts, fan belts, hydraulic pneumatic instruments, 2. Provided export benefits to intermediate suppliers of auto componentsmainly in 2 wheelers industry against the Duty Free Replenishment Certificate (DFRC).2. The prominent companies in this business are constantly working Automotive Mission Plan 2016-26 (AMP 2026)towards expanding their customer base 1. AMP 2026 targets a 4-fold growth in the automobiles sector in IndiaInvestments and Developments which includes the manufacturers of automobiles, auto components and tractor industry over the next 10 years. Investments Have Been Rising at a Fast Pace 2. It is expected to generate an additional employment of 65 million. 1. FDI Investments in the auto components sector reached US$ FAME Scheme 372.44 million in 2016-17. 1. The scheme is aimed at incentivising all vehicle segments i.e. 2 2. With the launch of Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial “Make in India” initiative, Vehicles and Buses. It covers hybrid & electric technologies like Mild the government is Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles. The expected to vitalise scheme has been extended to March 2018 from March 2017. a substantial investment in the Union Budget 2018–19 auto component sector. 1. Budget 2018-19 imposed a surcharge of 10 per cent on aggregate duties of customs on imports, replacing education and secondary 3. Auto and higher Education Cess, which is expected to boost domestic component manufacturing. sector is expected to 2. Reduction of tax to 25 per cent for companies with turnover up to Rs invest around 250 crore (US$ 38.62 million) was also announced in Union Budget. US$ 4.5 billion for upgradation of products & keeping up with the new industrySpotlight on Indian Electronics 2018-19 | 147

TIInneddleuiacsotrmy inIndia is the world’s second-largest telecommunications market, with over 1.18 billion subscribers as of November 2017. The wireless segment (98.03 per cent of total telephone subscriptions) dominates the market. It has also been growing at a brisk pace. During FY07-17, wireless subscriptions witnessed a CAGR of 21.64 per cent to reach1,170.2 million. India is also the second largest country in terms of inter-net subscribers. The country is now the world’s second largest smartphonemarket and will have almost one billion unique mobile subscribers by2020. Revenues from the telecom equipment sector are expected to growto US$ 26.38 billion by 2020.

High Priority Market | TelecomIndia’s telecommunications market is expected to experience US$ 103.9 billion by 2020.further growth, fuelled by increased non-voice revenues and higher Investment/Major developmentpenetration in rural market. Telecom penetration in the nation’s With daily increasing subscriber base, there have been a lot ofrural market increased to 56.94 per cent by November 2017. The investments and developments in the sector. The industry hasemergence of an affluent middle class is triggering demand for the attracted FDI worth US$ 30.03 billion during the period April 2000 tomobile and internet segments. September 2017, according to the data released by Department ofStrong policy support from the government has been crucial to the Industrial Policy and Promotion (DIPP).sector’s development. Foreign Direct Investment (FDI) cap in the Some of the developments in the recent past are:telecom sector has been increased to 100 per cent from 74 per cent. • Finnish telecommunication company Nokia, is going to collaborateIndia is currently the world’s second-largest telecommunications with Indian telecom companies Bharti Airtel and BSNL to work on themarket with a subscriber base of 1.05 billion and has registered roadmap for development of 5G technology and creating a conducivestrong growth in the past decade and half. The Indian mobile ecosystem for 5G in India.economy is growing rapidly and will contribute substantially to India’s • The Government of India is working to digitally connect the ruralGross Domestic Product (GDP), according to report prepared by and remote regions in the country and has decided a new affordableGSM Association (GSMA) in collaboration with the Boston Consulting tariff structure with the principle of more you use, less you pay. TheGroup (BCG). The country is the fourth largest app economy in the changes will soon be reflected in tariff changes by service providers inworld. the country.The liberal and reformist policies of the Government of India have • India telecommunication companies will be investing US$ 20 billionbeen instrumental along with strong consumer demand in the rapid over the next two years for expansion of network and operations.growth in the Indian telecom sector. The government has enabled Government Initiativeseasy market access to telecom equipment and a fair and proactiveregulatory framework that has ensured availability of telecom services The government has fast-tracked reforms in the telecom sectorto consumer at affordable prices. The deregulation of Foreign Direct and continues to be proactive in providing room for growth forInvestment (FDI) norms has made the sector one of the fastest telecom companies. Some of the other major initiatives taken by thegrowing and a top five employment opportunity generator in the government are as follows:country. • The Government of India is working to digitally connect the ruralThe Indian telecom sector is expected to generate four million direct and remote regions in the country and has decided a new affordableand indirect jobs over the next five years according to estimates tariff structure with the principle of more you use, less you pay. Theby Randstad India. The employment opportunities are expected to changes will soon be reflected in tariff changes by service providers inbe created due to combination of government’s efforts to increase the country.penetration in rural areas and the rapid increase in smartphone sales • The Government of Telangana is targeting to provide broadbandand rising internet usage. connection to every household in the state by 2018, which is expectedMarket Size to lead to revolutionary changes in the education and health sectors. Road AheadThe mobile industry is expected to create a total economic value of India will emerge as a leading player in the virtual world by havingRs 14 trillion (US$ 217.37 billion) by the year 2020. It would generate 700 million internet users of the 4.7 billion global users by 2025, asaround 3 million direct job opportunities and 2 million indirect jobs per a Microsoft report. Internet economy expected to touch Rs 10during this period. India has become the second largest smartphone trillion (US$ 155 billion) by 2018, contributing around 5 per cent to themarket in the world as shipments increased 23 per cent year-on-year country’s GDP. With the government’s favourable regulation policiesin Q3 2017, to reach more than 40 million units. and 4G services hitting the market, the Indian telecommunicationRise in mobile-phone penetration and decline in data costs will add sector is expected to witness fast growth in the next few years. The500 million new internet users in India over the next five years creating Government of India also plans to auction the 5G spectrum in bandsopportunities for new businesses. The monthly data usage per like 3,300 MHz and 3,400 MHz to promote initiatives like Internet ofsmartphone in India is expected to increase from 3.9 GB in 2017 to Things (IoT), machine-to-machine communications, instant high18 GB by 2023. definition video transfer as well as its Smart Cities initiative. TheData usage on Indian telecom operators’ networks (excluding Indian mobile phone industry expects that the Government of India’sReliance Jio), doubled in six months to 359 petabytes or 3.7 million boost to production of battery chargers will result in setting up of 365gigabytes per month as 4G data usage share increased to 34 per factories, thereby generating 800,000 jobs by 2025.cent by the end of June 2017. According to a report by leadingresearch firm Market Research Store, the Indian telecommunicationservices market will likely grow by 10.3 per cent year-on-year to reachSpotlight on Indian Electronics 2018-19 | 149

IEinn-cIdnomduiamsetrrcye The Indian e-commerce The number of internet users in India is have high aspirations. expected to increase from 481 million as of industry has been on December 2017 to 829 million by 2021. • With the increase in awareness about the benefits of online trading, there has been aT an upward growth A young demographic profile, rising internet significant rise in investment in E-commerce trajectory and is expected penetration and relative better economic business. Hand in hand with offline to surpass the US to performance are the key drivers of this trading, many established businesses, e.g. become the second sector. The Government of India’s policies Shoppers Stop or Lifestyle, have setup online largest e-commerce and regulatory frameworks such as 100 per transaction channels. cent foreign direct investment (FDI) in B2B market in the world by e-commerce and 100 per cent FDI under • Earlier food and grocery were never automatic route under the market place thought of as items for online trading. 2034. India’s e-commerce model of B2C e-commerce are expected to However, with the change of working habits, further propel growth in the sectors. and consumers opting for adaptability and industry is expected to convenience, there are now innumerable • Propelled by rising smartphone small and large E-commerce companiesgrow from US$ 38.5 billion as of 2017 to US$ penetration, the launch of 4G networks and selling provisions and food items like increasing consumer wealth, the Indian Grofers, BigBasket, etc.200 billion by 2026. India’s internet economy e-commerce market is expected to grow to US$ 188 billion by 2025. Introductionis expected to double from US$125 billion • E-commerce is increasingly attracting The e-commerce has transformed theas of April 2017 to US$ 250 billion by 2020, customers from Tier 2 and 3 cities, where way business is done in India. The Indian people have limited access to brands but e-commerce market is expected to grow tomajorly backed by ecommerce. US$ 200 billion by 2026 from US$ 38.5 billionMuch growth of the industry has beentriggered by increasing internet andsmartphone penetration. Internet penetrationin India grew from just 4 per cent in 2007 to35.03 per cent in 2017, registering a CAGRof 24.23 per cent between 2007 and 2017. Spotlight on Indian Electronics 2018-19 | 150

High Priority Market | E-Commerce as of 2017. The value of e-commerce The internet industry in India is likely to double market is expected to cross US$ 50 to reach US$ 250 billion by 2020, growing to 7.5 billion by 2018. per cent of Gross Domestic Product (GDP), with Much growth of the industry has the number of mobile internet users growing to been triggered by increasing internet about 650 million and that of high-speed internet and smartphone penetration. The users reaching 550 million. About 70 per cent of ongoing digital transformation in the total automobile sales in India, worth US$ 40 the country is expected to increase billion, are expected to be digitally influenced by India’s total internet user base to 829 2020 as against US$ 18 billion in 2016. million by 2021 (59 per cent of total population), from 373 million (28 per Investments/ Developments cent of population) in 2016, while total number of networked devices Some of the major developments in the Indian in the country are expected to grow e-commerce sector are as follows: to two billion by 2021, from 1.4 billion in 2016. • Amazon invested Rs 6,200 crore (US$ 1 billion) in e-commerce arm in Market Size India during calendar year 2017. Total online spending, inclusive of domestic and cross border • Venture Capital (VC)-backed firms in India raised a record US$ 9.6 shopping, is expected to increase by billion of fresh capital between January-September 2017, which is more 31 per cent year-on-year to Rs 8.76 than twice the amount of capital raised during the same period in the trillion (US$ 135.8 billion) by 2018. previous year. Cross border shopping by Indians touched Rs 58,370 crore (US$ 9.1 •Blackbuck, an online freight aggregator operated by Zinka Logistics billion) in 2016, and is expected to by Solutions Pvt Ltd, has raised Rs 50 crore (US$ 7.68 million) in venture 85 per cent year-on-year in 2017. The debt from InnoVen Capital.top 3 countries preferred by Indians for cross-border shopping in 2016 • Bank Bazaar, a financial marketplace start-up in India, raised US$ 30were USA (14%), UK (6%) and China (5%). million in a funding round led by Experian Plc, a credit rating agencyThe Indian consumer internet market is expected to grow by 44 per cent based in UK, taking the company’s total funding to US$ 110 million.year-on-year to touch US$ 65 billion in 2017, up from US$ 45 billion in2016. Online travel agents account for the largest market share (70 per • Gozefo.com, a Bengaluru based used furniture and appliancescent) in the internet consumer market, while the remaining 30 per cent platform, has raised Rs 60 crore (US$ 9 million) in Series B funding fromis occupied by horizontal e-tailing, fashion, furniture, grocery, hotel, food Sequoia Capital India, Helion Venture Partners and Beenext Pte. Ltd.tech, cab aggregators, education technology, and alternative lendingamong others. Government initiatives Since 2014, the Government of India has announced various initiatives namely, Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective implementation of such programs will likely support the e-commerce growth in the country. Road Ahead The e-commerce industry been directly impacting the micro, small and medium enterprises (MSME) in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well. The total size of e-Commerce industry (only B2C e-tail) in India is expected to reach US$ 101.9 billion by 2020. Technology enabled innovations like digital payments, hyper- local logistics, analytics driven customer engagement and digital advertisements will likely support the growth in the sector. With the increase in the number of electronic payment gateways and mobile wallets, it is expected that by the year 2020, cashless transaction will constitute 55 per cent of the online sales. The growth in e-commerce sector will also boost employment, increase revenues from export, increase tax collection by ex-chequers, and provide better products and services to customers in the long-term.Spotlight on Indian Electronics 2018-19 | 151

GDMElilaesorcpbktlaareloytnicGLOBAL ELECTRONIC DISPLAY MARKET WAS VALUED AT APPROXIMATELY USD 119.48 BILLIONIN 2017 AND IS EXPECTED TO REACH APPROXIMATELY USD 190.66 BILLION BY 2023, GROWINGAT A CAGR OF AROUND 8.1% BETWEEN 2018 AND 2023. Spotlight on Indian Electronics 2018-19 | 152

High Priority Market | Display MarketAn electronic display is a device which shows images, industrial growth in countries like India, China, and Japan texts or videos electronically without permanent is also expected to fuel the growth of electronic display storage. The electronic display acts as an output market in Asia Pacific. Increase in awareness of potentialdevice which projects data in visual form through electrical benefits of advanced electronic displays and relatedsignal as an input. Generating visuals in real time by applications across the countries in Asia Pacific, is alsoconverting electrical signals into images is the primary expected to fuel the demand for electronic display duringfunction of electronic display. There are different types of the forecast period.technologies being used in electronic displays such asLED, LCD, OLED, CCFL, CRT, and 5o thers. Due to its high High adoption of advanced technological displays suchpeak intensity characteristic, LCDs produce bright images as OLED and QDLED has been driving the growth ofand consume less than one-third of power as compared to electronic display market in North America. IncreasedCRT displays. While light emitting diode (LED) display has use of electronic displays in IT sector as well as businessa very simple electronic circuit and consumes around 70% organizations is expected to further fuel the growth ofless power as compared to a plasma display. electronic display market in North America. Moreover, increased adoption of smartphones and tablets in salesDue to less maintenance and comparatively lower cost and marketing activity is anticipated to spur the growththan traditional displays, electronic displays are prominent of electronic display market in North America. With thein everyday life and this factor is expected to drive the expansion of internet of things, flexible displays aregrowth of the global electronic display market. In addition, expected to be used more widely in auto interiors forpopulation growth and growing adoption of electronic wearable devices and other internet-ready gadgets.devices in almost every sector are considered to be oneof the major drivers of the electronic display market. Increasing adoption of advanced electronic gadgets inFurthermore, the emergence of consumer electronics automotive sector is anticipated to be the primary driver ofsuch as smartphones, laptops, smart televisions etc. is the electronic display market in Europe. The automotiveanticipated to fuel the growth of electronic display market sector is becoming one of the biggest markets for printedacross the globe. Traditionally, CRT displays have been electronics in Europe due to growing use of flexibleused as a standard display device in machines, but with liquid crystal displays and OLEDs in electric vehicles.high advantages of LCDs and other technologies, CRT According to the European trade group, Organic anddisplays are becoming more sophisticated and this factor Printed Electronics Association (O-EA), most of the autois further driving the growth of electronic display market manufacturers have a preference for the curves, decorativeworldwide. Moreover, high demand for OLED based effects, and variability in design of flexible electronicdevices, wearable devices, and flexible displays are displays.expected to fuel the growth of electronic display market.Growing use of flexible liquid crystal displays and OLEDs Latin America, Middle East, and Africa are likely to exhibitin electric vehicles is further propelling this market globally. moderate growth for electronic display market during theHowever, the high production cost of advanced display forecast period. Shifting technological preferences towardsmaterials has been restraining the growth of electronic high quality displays with increasing demand for OLED anddisplay market across the globe. LED display is expected to fuel the demand for electronic display market in the coming years. Increased adoptionThe Asia Pacific is expected to dominate the global of digital signage for business operations by manyelectronic display market over the forecast period. The organizations in Middle East and Africa is anticipated to fuellow manufacturing costs and advanced technological the growth of electronic display market in this region.developments in this region are expected to be the primarydrivers for the electronic display market in Asia Pacific. Key playersPresence of major electronics brands and large consumerpopulation in Asia Pacific is expected to further drive LG Electronics, ActiveLight Inc., AU Optronics, Cambridgethe growth of electronic display market. Moreover, rapid Display Technology, Acer Inc., Zenith Electronics Corp., Sharp Corporation, Toshiba Corp., Sony Corp., Casio Computer Co. Ltd.Spotlight on Indian Electronics 2018-19 | 153

IT & ITeS Industryin India• IT BPM industry revenues (excluding hardware) isestimated at around US$ 130 billion in FY 2015-16 andis estimated to be at US$ 154 billion in FY 2016-17.• The contribution of the IT sector to India’s GDPstood at 7.7 per cent in 2016.• TCS is the market leader, accounting for about 10.4per cent of India’s total IT & ITeS sector revenue inFY16• The top 5 IT firms contribute over 25 per cent to thetotal industry revenue, indicating the market is fairlycompetitive.• The domestic revenue of the IT industry is estimatedat US$ 38 billion and export revenue is estimated atUS$ 117 billion in FY17. Spotlight on Indian Electronics 2018-19 | 154

he global sourcing market in India continues High Priority Market | IT & ITeS to grow at a higher pace compared to the of volume of transactions.TIT-BPM industry. The global IT & ITeS market (excluding hardware) reached US$ 1.2 trillion in Employees from 12 Indian start-ups, such as Flipkart,2016-17, while the global sourcing market increased by Snapdeal, Makemytrip, Naukri, Ola, and others, have1.7 times to reach US$ 173-178 billion. India remained gone on to form 700 start-ups on their own, thusthe world’s top sourcing destination in 2016-17 with a expanding the Indian start-up ecosystem. India ranksshare of 55 per cent. Indian IT & ITeS companies have third among global start-up ecosystems with moreset up over 1,000 global delivery centres in over 200 than 4,200 start-ups.cities around the world. Total spending on IT by banking and security firms inMore importantly, the industry has led the economic India is expected to grow 8.6 per cent year-on-year totransformation of the country and altered the US$ 7.8 billion by 2017.perception of India in the global economy. India’scost competitiveness in providing IT services, which India’s Personal Computer (PC) shipment advancedis approximately 3-4 times cheaper than the US, 11.4 per cent year-on-year to 9.56 million units in 2017continues to be the mainstay of its Unique Selling on the back of rise in the quantum of large projects.Proposition (USP) in the global sourcing market.However, India is also gaining prominence in terms of The public cloud services market in India is slated tointellectual capital with several global IT firms setting up grow 35.9 per cent to reach US$ 1.3 billion accordingtheir innovation centres in India. to IT consultancy. Increased penetration of internet (including in rural areas) and rapid emergence ofThe IT industry has also created significant demand in e-commerce are the main drivers for continued growththe Indian education sector, especially for engineering of data centre co-location and hosting market inand computer science. The Indian IT and ITeS industry India. The Indian Healthcare Information Technologyis divided into four major segments – IT services, (IT) market is valued at US$ 1 billion currently and isBusiness Process Management (BPM), software expected to grow 1.5 times by 2020. India’s businessproducts and engineering services, and hardware. to business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020 whereas the businessIndia has come out on top with the highest proportion to consumer (B2C) e-commerce market is expected toof digital talent in the country at 76 per cent compared reach US$ 102 billion by 2020.to the global average of 56 per cent. Cross-border online shopping by Indians is expectedMarket Size to increase 85 per cent in 2017, and total online spending is projected to rise 31 per cent to Rs 8.75The internet industry in India is likely to double to reach lakh crore (US$ 128 billion) by 2018.US$ 250 billion by 2020, growing to 7.5 per cent ofgross domestic product (GDP). The number of internet Investments/ Developmentsusers in India is expected to reach 730 million by 2020,supported by fast adoption of digital technology. Indian IT’s core competencies and strengths have attracted significant investments from major countries.Indian IT exports are projected to grow at 7-8 per cent The computer software and hardware sector in Indiain 2017-18 to US$ 126 billion, in addition to adding attracted cumulative Foreign Direct Investment (FDI)130,000-150,000 new jobs during the same period. inflows US$ 29.825 billion from April 2000 to December 2017.Indian IT and BPM industry is expected to grow to US$350 billion by 2025 and BPM is expected to account for Leading Indian IT firms like Infosys, Wipro, TCSUS$ 50-55 billion out of the total revenue. and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain,E commerce market in India is set to grow at 30 per artificial intelligence to clients using innovation hubs,cent annually to hit US$ 200 billion gross merchandise research and development centres, in order to createvalue by 2026. differentiated offerings.Indian technology companies expect India’s digital Some of the major developments in the Indian IT andeconomy to have the potential to reach US$ 4 trillion by ITeS sector are as follows:2022, as against the Government of India’s estimate ofUS$ 1 trillion. • India ranked ninth out of the 14 countries in the latest report of the Korn Ferry Digital Sustainability IndexRise in mobile-phone penetration and decline in data (DSI), outperforming countries such as China, Russiacosts will add 500 million new internet users in India and Brazil.over the next five years creating opportunities for newbusinesses. • The flexi staffing market in the information technology (IT) sector in India stood at US$ 3.04 billion in FY 2016-Digital payment in India is expected to grow from 32 17 and is estimated to grow at a Compound Annualper cent in 2013-14 to 62 percent in 2017-18 in terms Growth Rate (CAGR) of 14-16 per cent to reach US$ 5.3 billion by 2021. • Private Equity (PE)/ Venture Capital (VC) investments in India’s IT & ITeS sector reached US$ 7.6 billion during April- December 2017. • Exports of software services from India increased 10.3 per cent year-on-year to reach US$ 97.1 billion in FY 2016-17.Spotlight on Indian Electronics 2018-19 | 155

High Priority Market | IT & ITeS• Spending on artificial intelligence (AI) by crore (US$ 555 million) and the government Zones (SEZs). Further, the country is providingIndian companies is expected to increase expects to start broadband services with about procedural ease and single window clearanceby 8-11 per cent over the coming 18 months 1,000 megabit per second (1 gbps) across 1 for setting up facilities. Under Union Budgetbacked by rising influence of AI-based solutions lakh gram panchayats by the end of this year. 2018-19, the government has announcedacross verticals. setting up of a national level programme that Road Ahead will enable efforts in Artificial Intelligence (AI)• India plans to create wireless Technology and will help in leveraging AI technology for5G by the end of the year 2020 which will India is the topmost offshoring destination for development works in the country.help India in realising its most important IT companies across the world. Having provengoals of “Increasing the GDP rate”, “Creating its capabilities in delivering both on-shore and SummaryEmployment” and “Digitizing the Economy”. off-shore services to global clients, emerging technologies now offer an entire new gamut 1. Strong growth opportunities: The• The mobile wallet industry is expected to of opportunities for top IT firms in India. US$ IT-BPM sector in India expanded at a CAGR ofmaintain its current pace of expansion and the 150 billion Indian IT indstry’s export revenue to 11.14 per cent to US$ 154 billion in FY17 fromvalue of its transaction is expected to reach Rs grow at 7-8% and domestic market revenue is US$ 74 billion in FY10, which is 3–4 times higher32 trillion (US$ 480 billion) by 2022, growing at a projected to grow at 10-11 per cent in 2017-18. than the global IT-BPM growth. It is estimatedrate of 126 per cent. that the size of the industry will grow to US$ 350 Presentation billion by 2025.Government Initiatives India is the world’s largest sourcing destination, 2. Leading sourcing destination: IndiaSome of the major initiatives taken by the accounting for approximately 55 per cent of is a prominent sourcing destination across thegovernment to promote IT and ITeS sector in the US$ 173-178 billion market in 2016-17. The world, accounting for approximately 55 per centIndia are as follows: country’s cost competitiveness in providing market share of the US$ 173-178 billion global Information Technology (IT) services, which is services sourcing business in 2016-17; India• The Government of India is going to explore approximately 3-4 times cheaper than the US, acquired a share of around 38 per cent in thenew opportunities in various sectors such continues to be its Unique Selling Proposition overall Business Process Management (BPM)as providing BPO service from home, digital (USP) in the global sourcing market. sourcing market.healthcare and agriculture to achieve the targetof making India a US$ 1 trillion digital economy. The sector ranks 3rd in India’s total Foreign 3. Largest pool of ready to hire Direct Investment (FDI) share and has received talent: India’s highly qualified talent pool of• The Government of Andhra Pradesh is US$ 29.825 billion of FDI inflows between April technical graduates is one of the largest in thetargeting to attract investments worth US$ 2000 and December 2017. world, facilitating its emergence as a preferred2 billion and create 100,000 jobs in the destination for outsourcing, computer science/information technology (IT) sector in the state. India’s highly qualified talent pool of technical information technology accounts for the biggest graduates is one of the largest in the world chunk of India’ fresh engineering talent pool,• The Government of Telangana is targeting and is available at a cost saving of 60-70 per with more than 98 per cent of the collegesto provide broadband connection to every cent to source countries. This large pool of offering this stream.household in the state by 2018, which is qualified skilled workforce has enabled Indian ITexpected to lead to revolutionary changes in the companies to help clients save US$ 200 billion 4. Most lucrative sector foreducation and health sectors. in the last five years. investments: The sector ranks 3rd in India’s total FDI share and accounts for approximately• Minister of Communications, Government Revenue of India’s IT industry reached US$ 154 37 per cent of total Private Equity and Ventureof India, launched project DARPAN - digital billion and exports stood at US$ 117 billion in investments in the country. The computeradvancement of rural post office for a new India, 2016-17. The industry’s revenue and exports software and hardware sector in India attractedfor improving the quality and adding value to are expected to rise to US$ 167 billion and US$ cumulative Foreign Direct Investment (FDI)services and achieving financial inclusion for the 126 billion in FY18, respectively. The Business inflows worth US$ 29.825 billion between Aprilunbanked rural population. Process Management (BPM) segment 2000 and September 2017, according to data accounted for 22.22 per cent of the total IT released by the Department of Industrial Policy• President of India, has dedicated four exports during FY17. India’s IT-BPM sector is and Promotion (DIPP).projects, such as Andhra Pradesh Fibregrid, expected to expand to US$ 350 billion by 2025Andhra Pradesh Surveillance Project, Drone and BPM is expected to account for US$ 50-55 5. Export and employment growth:Project and Free Space Optical Communication billion out of the total revenue. Indian IT exports are projected to grow at 7-8(FSOC) to the people of Andhra Pradesh. per cent in 2017-18. IT-BPM sector accounts The Government of India has extended tax for largest share in total Indian services export,• The Government of India is planning to set holidays to the IT sector for software technology which is 45 per cent.wi-fi facility for around 5.5 lakh villages by March parks of India (STPI) and Special Economic2019 with an estimated investment of Rs 3,700 6. Large contribution to the Indian economy: India’s IT industry contributed around 7.7 per cent to the country’s GDP. IT industry employs nearly 3.9 million people in India of which more than 170,000 were added in FY17. The industry is expected to add 130,000 to 150,000 jobs in FY18 and over 100,000 jobs in FY19; IT industry is fueling the growth of startups in India, with the presence of more than 4,750 startups in India. Spotlight on Indian Electronics 2018-19 | 156

APACConsumer Electronics Market Spotlight on Indian Electronics 2018-19 | 157

High Priority Market | Consumer Electronics costs came down to USD 1,250 from USD 8,000. As the trend continues Consumer electronics industry size is forecast to in the ensuing years, audio & video cross a mammoth USD 1500 billion by 2024. equipment consumer electronics market will experience quite a robust growth over Having already chronicled its name in the trillion-dollar business space 2017-2024. in 2016, consumer electronics market, as on today, stands as one of the most remunerative verticals of the electronics space. Endowed with a Given that North America is the principal diverse product spectrum, the expanse of which seems to be increasing hub for the conception and maturation by the day, this sphere has a lot to contribute to its parent domain. In of high-grade technologies, the region is the last half a decade, the emergence of smart technologies and their anticipated to be a prime growth avenue implementation in electronic component manufacturing has further for consumer electronics industry. strengthened the prospects of consumer electronics industry. A recent Driven by the efforts of manufacturers instance of how core consumer electronics market players are shifting developing entertainment products their manufacturing strategies as per the changing technologies is that embedded with remote monitoring of LG Electronics USA making its Wi-Fi connected smart appliances and sensing as well as AI capabilities, compatible with Google Assistant and Amazon Alexa. North America audio & video equipment consumer electronics market size is Audio & video equipment to drive consumer expected to surpass USD 130 billion by electronics industry trends 2024, while shipments are forecast to register a CAGR of 2% over 2017- 2024. With the rapid proliferation of smart technology, the electronic devices that have undergone the maximum change of dynamics are audio & How Asia Pacific is emerging as a profitable growth video equipment. As high-grade technologies have made their presence ground for consumer electronics industry felt in this sector, manufacturers have been integrating the same in devices such as speakers and television sets. The rise of 4K, 8K, and Asia Pacific has been touted to come up as the most developing higher resolution systems have also brought about a massive change in region in the geographical landscape of consumer electronics market. consumer electronics market outlook, especially since they have been The nearly accurate forecast can be credited to a plethora of factors, ruling the roost lately. This is rather overt from the fact that video content including improved economic conditions and high disposable incomes and broadcasting companies like Amazon Prime and Netflix have been of the rising middle-income countries. Incidentally, both these factors robustly developing 4K content to validate their contribution toward the combined, have led to an escalated demand for products such as digital trending ultra-high definition systems movement. imaging equipment, television sets, speakers, refrigerators, and the like. Another factor ensuring the increasing popularity of these systems is Indeed, digital photography components are known to have registered an their declining cost since the last few years. From 2012 to 2015, 4K TV appreciable demand in the region, plausibly on account of smartphone cameras replacing the conventional ones. As per estimates, APAC digital photo equipment-based consumer electronics market size from professional applications is projected to register a CAGR of more than 4% over 2017-2024. Driven by the cheaper costs of digital cameras and their excellent picture quality, APAC digital photo equipment-based consumer electronics industry size from professional applications will hit 15 million units by 2024. This is a fairly appreciable share of the overall digital photo equipment market, anticipated to surpass 50 million units by 2024. Emerging economies such as China, South Korea, and India have emerged to be major revenue pockets for APAC consumer electronics market share. In fact, China consumer electronics industry size stood at a modest USD 200 billion in 2016 and is projected to record a CAGR of more than 5% over 2017-2024. These countries specifically excel in the sale of household appliances that are becoming more commonplace across the continent, owing to increasing disposable incomes and fast-paced lifestyles. Indeed, it would be fair to state that the regional household appliances market will account for a considerable share of the global major household appliances industry, the shipments of which are forecast to surpass 800 million units by 2024. Being classified among the most customer-centric verticals of all times, consumer electronics market will be fueled by technological advancements in components such as earphones & headphones, household appliances, smartphones, and speakers. Also, with rising disposable incomes and a rapid change in end-user lifestyles and purchase parity, it is rather overt that these devices, even embedded with expensive technology, will become mainstream in a few years. As wireless technologies such as Bluetooth, Wi-Fi, and NFC become commonplace and customer convenience becomes more of a strong focal point, consumer electronics market share is likely to witness an incline.Spotlight on Indian Electronics 2018-19 | 158

Global Internet The global Inter-of Things (IoT) net of Things (IoT) microcontroller market was valued “at US$ 1,765.3 mnMicrocontroller in 2015 and is es- timated to expand with a CAGR ofMarket 11.7% from 2016 to 2023. Market Insights microcontroller manufacturers are focusing towards supplying advanced microcontroller Internet of Things (IoT) refers to a network of solutions specifically for IoT applications. different physical objects including electronic devices, automobiles, buildings and other Mergers and acquisition are among the most objects equipped with the IoT network prominent trends adopted by the companies component. The concept of IoT works on the in order to gain a competitive edge in the principle of connecting various objects that market. One of the most significant instance can be assigned with an internet protocol (IP) is the acquisition of Atmel Corporation, a address. Basic components of the IoT network U.S. based microcontroller manufacturer by such as sensing devices are based upon Microchip Technology, Inc., another U.S. based microcontroller platforms for connectivity and microcontroller manufacturer. Another major data collection. This makes IoT microcontrollers instance is the acquisition of Itseez, Inc. by among the most important aspects of the Intel Corporation. With headquarters in the overall IoT industry. U.S., Itseez, Inc. is software vendor engaged in developing applications and algorithms The rising IoT trend worldwide is the most for embedded hardware used in IoT and significant factor fueling the IoT microcontroller automotive applications. market growth. IoT is witnessing strong adoption across various applications such Key Trends: as industrial automation, smart appliances, smart grids, home automation and smart • Focus on development of advanced (low- cities among others. With the rising number power and ultra-low-power) IoT microcontrollers of connected devices globally, it becomes highly essential to develop high performance • Emphasis on specific IoT applications microcontrollers for different IoT applications. (especially automotive, healthcare, consumer Considering the adoption rate of IoT services, electronics etc.) various companies worldwide have already begun developing high performance IoT • Rising penetration of connected devices microcontrollers. Another major factor pushing the market growth is the growing miniaturization • Acquisition and partnerships for entering/ of electronic devices. strengthening the position in the market Competitive Insights: The global IoT microcontroller market is highly competitive in nature with numerous technology giants trying to increase their footprint in the market. The IoT microcontroller market is highly technology driven and is mainly pushed by the rising number of connected devices. Due to high potential in the overall IoT industry, SpoStpligothlitgohnt oInndIinadniaEnleEclterocntriocnsic2s01280-1189-1|9159

India IoT ReportEmergence of anew Civic OS TATA CommunicationsIntroduction humanity. In this new world, people to coexist and to cohabit and com- Lately, the Internet of Things will receive uniquely personalised municate seamlessly - all part of (IoT) has been receiving its fair services on demand, while societies the definitive roadmap of the fourth share of attention as the world will benefit from optimized re- industrial revolution unfurling at the turns more and more digital. source use and minimised negative moment. The Civic OS represents a There is no doubting the value it has environmental impact. The Organ- fundamental change in norms and unlocked so far and its potential to isation for Economic Co-operation mores in society: a change in the change life as we know it today. and Development (OECD) compares way we conduct both our businesses 2018 is being heralded by several IoT’s significance and potential and our relationships, as well as our notable organisations as a year ubiquity to the advent of household everyday lives in times to come. of good tidings and synchronised electricity and sees it extending As IoT connectivity broadens and global economic growth. Reports are beyond technology and commerce markets evolve, how we live, how bullish about India’s participation in to redefine our social, cultural and we use technology and interact with the global economy’s recovery and professional relationships. each other, and our expectations are pegging India’s economic growth We dub the new behavior and cul- from these innovations, are all being at 7-8%. ture manifesting itself as a by-prod- redefined. This new civic society will Most reports indicate that the full uct of this IoT enabled society the be fuelled by data and optimised by potential and value of the Internet new ‘Civic Operating System, a new machines collaborating with each of Things will be achieved with a Civic OS.’ other for the benefit of citizens. juxtaposition of both the developed The following report sheds light on This change will be underpinned by and emerging economies. India the nature and speed at which these a robust technical construct through already has more than 100 smart developments will be realised in which public and commercial ser- city initiatives planned - cities to be India, both in collective understand- vices can be delivered directly to in- equipped with state-of- the-art com- ing and individual expectations of dividuals by and through a range of munication capabilities and ubiqui- life. To co-create a sustainable and connected devices, from wearables tous connectivity to enable seamless lasting impact, the higher the aware- and domestic appliances to vehicles communication not just between ness of the technologies at hand, the and smart meters. The Internet of humans but also machine-to-ma- greater the chance that end consum- Things will not only change the way chine (M2M), and thereby machines ers will be able to enjoy them and we work but also transform the way to humans. custom-shape their everyday lives in we live, thereby giving rise to a new The Internet of Things presents an significant ways. way of life. opportunity to transform society A key concept in our thinking is the Finallyas a prelude, below is a sum- and establish a new ecosystem built idea of Civic OS, which we define as mary of the key findings of the Tata to serve not merely humans, but the ability of humans and machines Communications inaugural India IoT Spotlight on Indian Electronics 2018-19 | 160

High Priority Market | IoTReport: Perception of IoT’s full impact and engagement with it is In this paradigm, technology and infrastructure become keystill in its infancy, as one in three respondents still believes that differentiators in global economies, whose GDPs will depend lessIoT is equivalent to smartphones only. on access to raw materials and commodities and more on theirOn the household front, more than 90% would be interested in capacity to share, store and access information. Ideally, such econ-applying IoT to the challenge of managing household chores. To omies will be able to optimise their resources and build inclusiveillustrate, more than 50% of those surveyed said they regularly and affirmative communities while also minimising negativerun out of milk, so a connected fridge that automatically helps re- environmental impact.stock essentials would be a boon. This chart summarises our broad conclusions - we will return to itWhen it comes to public services health tops the priority list with as the account of our conclusions progresses below.over 80% expecting IoT to help improve family healthcare servicesin India. Connected DevicesWhat do these findings mean for the future of IoT in India? Andwhat are the opportunities and barriers faced during widespread The Smartphone Paradoxdeployment in India? Read on to find out! According to research, (34.6%) of Indians associate IoT primari- ly with smartphones. Smaller proportions cited public servicesThe Civic Operating System (14.5%), smart homes (14.1%) or smart cities (11.4%). Only (14.2%) of respondents picked ‘all devices and appliances connectedA new humanism and working with each other for the common good’ as the bestThere are currently 7.6 billion people on Earth: 3.7 billion are con- descriptor of IoT.nected to the Internet; almost 50% of that connected populationlives in Asia, 24% of whom reside in India. Investment in digitisa- Fig. 2 | Consumer Insight | IoT by associationtion and urbanisation and friendly regulatory policies hold the key India has seen robust growth in wearable technology, with IoTto ensuring that India continues to advance on its path of socio- applied in the fitness, healthcare, lifestyle and infotainmenteconomic progress. The market potential of all things IoT in India sectors. Market for all things IoT is expected to grow exponentiallyalone is predicted to be $9 billion by 2020. India is one of the key according to several industry reports.countries poised for large-scale implementation of IoT projects - Clearly, the smartphone with its high-impact mobility featuresnot only to be able to set new standards but also as a key geogra- is not only the most visible, but also the most understood IoTphy to anticipate the emergence of a new humanism embracing device in the Indian context. 6Wresearch calculates that India’s IoTpeople and devices. In India, advancing ubiquitous connectivity is market is projected to grow at a CAGR of 28.2% in 2016-22, withchanging the dimensions of every social group. This emergence of ‘Industrial IoT’ accounting for the most growth in sectors such asa new societal operating system reflects both today’s technolog- manufacturing, production and logistics. According to IDC, moreical impact and also an evolving concept of citizenship: a change than 50% of India’s corporate leaders believe IoT to be imperativein the way citizens access services and relate to life. This is the to remaining ‘digitally fit’ and 60% see it as being imperative tofundamental basis of what we call the new Civic OS. driving a competitive advantage. In 2017, the World Bank cited theAs we move forward, IoT will continue to alter society, as we know Government’s Digital India campaign as a key driver to makingit today, establishing new variables and a new value chain which firms more competitive through the application of IoT technolo-embraces both humans and machines as our significant others as gies.the two become ever more inseparable. This change warrants a Clearly, common perceptions of what constitutes IoT need tonew set of protocols and behaviours to be able to function within advance through education and training for society to build athe new norm, which in turn, continues to shape the Civic OS. This sustainable ecosystem in the future.operating system, powered by IoT solutions, will enable econo- India is a largely agrarian economy. The agricultural sector thatmies to run more efficiently, securely and productively. employs nearly 50% of the country’s population has a huge impactAccording to research, there is a nascent understanding of how on the overall growth of the country. This sector stands to reapIoT will benefit individuals in Indian society today: 31.3% of the massive benefits from IoT–driven solutions that create improvedrespondents expect IoT to deliver improved levels of healthcare. output - thereby enhancing the value of the sector. Large farmersAround 20.5% of respondents anticipates better traffic man- are already deploying ‘precision farming’ techniques that use fieldagement and 24.7% expect a reduction in air pollution. 14.5% of sensors to monitor agricultural operations. Imagine the impact IoTIndians see an immediate association of IoT in the delivery of can have in introducing better predictability to farm yields, betterimproved public services leading to a better quality of life. control over soil dynamics to be able to achieve a better harvest, and even better quality of food for citizens – in turn resulting inFig. 1 | Consumer Expectations from IoT healthier citizens. Healthier citizens lead to a healthy economic outlook.Spotlight on Indian Electronics 2018-19 | 161

High Priority Market | IoTThe promise of IoT in the manufacturing sector is evident in en- According to our research, (65.9%) of Indians worry that they’vesuring a smarter process map across the value chain. left the lights on (FOLO) or the gas on back home when they areThe real story of IoT in India goes well beyond the smartphone – away at least once a week, and nearly a quarter (23.9%) worrybut people’s perception don’t reflect that yet. The impact of the about the issue at least once a day. That is a lot of accumulateddisparity between popular perception and the reality of IoT is anxiety!clear in people’s expectations of IoT in the future. Only 14.5% ofrespondents see enhanced public services as a potential benefit Fig. 6 | Consumer Insight | Acceptance of technology infrom the technology. This is the essence of the ‘smartphone para- managing FOLOdox’ revealed in our findings. A critical element of India’s Civic OS More than 9 out of 10 Indians (91.1%) are open to experimenting withwould be to build awareness of the impact of IoT for all segments a gadget that helps them monitor their home appliances in real-timeof society as an enabler of greater understanding, uptake and basis; a third (32.1%) would definitely subscribe to such a service.construction. According to NASSCOM, the IoT market in India is expected to reach $15 Bn by 2020. A house featuring intelligent technology is meantIoT in Homes to simplify and automate everyday activities and is capable of doing things autonomously. Today, an assortment of Wi-Fi enabled whiteDealing with FOLO (Fear of Lights On) goods and appliances is available in the market, from washingMore than half of the respondents (54.5%) admit to forgetting to machines that can activate grocers to send detergents, to robotic,replenish essential supplies such as milk at least once a month. self-guided vacuum cleaners that live under the couch.(22.7%) revealed that they run out of milk on a weekly basis. More Access-agnostic and completely interoperable, intelligent appliancesthan three-quarters of the respondents (75.3%) would be tempt- are beginning to capture the imagination and, in due course, mayed to purchase a technology which meant that they would never well establish critical mass.have to worry about running out of groceries again. While the transformative nature of IoT to a family of perhaps four is obvious, the broader impact on society from an environmental pointFig. 3 | Consumer Insight | Essential Supplies of view is also palpable. When questioned about the possibility of automated fridge restock-Fig. 4 | Consumer Insight | Acceptance of new technology ing, 35.2% respondents referenced the reduction of food wastage as ain homes resulting benefit.It is interesting to note that 35.2% of the respondents cited better The reality is that the positive impact of a genuinely connected homefood management as one of the key takeaways from such a pur- extends way beyond eliminating food wastage. One recent studychase. conducted by the Consumer Technology Association (CTA) suggests that using connected devices in a home environment could reduceFig. 5 | Accepting FOLO (Fear of Lights On) domestic energy consumption by at least 10%. In India, a Civic OS policy could be designed to make smart devices more accessible and affordable for the home and to incentivise the commercialisation of home IoT kits that address a particular issue, from resource optimisa- tion to home security. Given the growing levels of weekly and daily stress caused by forget- ting to re-stock the fridge or leaving the lights on, the strong psycho- logical benefits of IoT within Indian homes could also be considered over the longer term – an immeasurable soft benefit. Future of IoT Picture a world where everything in our lives is connected to the Internet and to every other thing, from smartphones and computers to our homes’ lights, windows, thermostats, and water systems. A world where all of these devices can be in constant communication and remotely controlled by users. With the rapid growth of the IoT, this level of home automation is becoming a reality. Spotlight on Indian Electronics 2018-19 | 162

High Priority Market | Medical ElectronicsMedical Electronics MarketMedical Electronics Market is poised to surpass USD of COPD, Asthma and other respiratory diseases. Technological 148 billion by 2024. Increasing number of healthcare advances aimed at developing more efficient and cost effective practitioners and rising number of community healthcare respiratory care devices willcenters along with increasing adoption of better technologies for further propel the marketdiagnosis and treatment will propel medical electronics market growth.demand. Hospitals are adoptingIncreasing technological advancement will drive medical innovative medical electronicelectronics market growth over the forecast period. Furthermore, devices to provide improvedgrowing disposable income levels in developing economies along healthcare facilities to thewith introduction of innovative products will surge industry patients. Rising healthcareexpansion. cost and growing disposableFavorable regulatory policies for expansion of medical electronics income levels will spurindustry and healthy reimbursement environment will propel business growth over thebusiness growth. However, high-cost associated with the medical forecast years.electronics will impede industry expansion. U.S. medical electronicsSurgical robots are widely used by surgeon for medical procedures market will witness significantranging from bladder reconstruction to open heart surgeries. growth owing to favorableLucrative return on investment and ability to save considerable time regulatory scenario andcompared to conventional methods will fuel increasing surgical presence of leading regionalrobots demand over the forecast period. business players. GrowingRespiratory care devices will witness significant revenue growth disposable income and risingowing to increasing geriatric population and increasing prevalence adoption of technologically advanced products will stimulate business growth over the forecast period. Domestic medical devices companies such as Siemens, Baxter General Electric, and Philips dominates the Russian medical electronics market. Favorable business environment and increasing adoption of technologically advanced products will fuel industry expansion over the forecast years. Some of the prominent players in medical electronics industry include Phillips, Siemens AG, GE Healthcare, Maxim Integrated, Carestream Health, Allengers Medical. Industry players adopt strategies like new product development and collaborations with domestic players to strengthen their industry presence and expand their product portfolio. Smart Medical Devices Market share is projected to experience significant growth from 2017 to 2024. Smart medical devices market size is likely to witness momentous growth owing to soaring adoption of smartphones across the globe, surging demand for smartphone-compatible and wireless medical devices, rising awareness and focus on health and fitness. Biochips Market Size 2017 – 2024: Biochips Market share is projected to witness significant growth from 2017 to 2024. Wide-ranging applications in the fields of proteomics, genomics, genotyping, and drug discovery coupled with rising adoption of the personalized medicines are the major factors driving the biochips market growth over the forecast period.SpoStpligothlitgohnt oInndIinadniaEnleEclterocntriocnsic2s01280-1189-1|9163

Electronic Industry InsightsContract Fueled by the demand for EMS services,Manufacturing the contract manufacturing industryand Design will grow from $425 billion in 2016 toServices $551 billion in 2021 - approximately at aMarket 5.3 percent CAGR. The growing func- tionalities, such as component assembly, engineering & design of printed circuit boards, sub-assembly manufacturing, and functional testing offered by contract man- ufacturers, are subsequently expected to drive the contract manufacturing services market growth over the forecast period.Spotlight on Indian Electronics 2018-19 | 164

High Priority Market | Design ServicesThe EMS model is driven by a contract manufacturer’s ability to specialize engineering to substantially reduce costs and improvein economies of scale in production, industrial design expertise, raw flexibility. They are increasingly investing in R&D activitiesmaterials procurement, and pooling resources along with offering value- and other strategic initiatives to streamline their productionadded services such as warranty and repairs. These allow OEMs to avoid processes. The establishment of in-house production ishaving tedious or complex large-scale industrial operations. By working a key challenge faced by majority of the players, owingwith EMS companies, customers can vary their cost structure, reduce to which outsourcing is a preferable option for them inworking capital requirements, and lessen the time to market. On account order to save cost. As such, the demand for this market isof these factors, the electronic contract manufacturing services market is expected to rise in the near future.expected to gain traction over the forecast period.The proliferation of mobile devices, such as tablets and smartphones, has End-use Insightsbeen the key propeller of electronic contract manufacturing and designservices market over the last few years. However, non-technical segments The global demand for electronic contract manufacturingsuch as healthcare, automotive, and aerospace & defense are projected services is anticipated to grow owing to rising applicationsto witness higher growth as compared to technical segments such as across non-technical end-use segments such asInformation Technology & Telecom and consumer products. healthcare, automotive, industrial, and aerospace & defense. The low penetration of EMS in these segments isService Insights creating higher opportunities for contract manufacturers to establish a strong foothold in the segments.Electronic manufacturing emerged as the leading service category in2016 and accounted for over 40% of the overall revenue share. However, The IT & telecom segment emerged as the largest end-the design & engineering segment is projected to witness a high growth use segment and accounted for over 45% of the totalover the forecast period owing to the surging inclination of OEMs toward market revenue in 2016. However, growing outsourcingoutsourcing their designing requirements. trends in the healthcare, automotive, defense, and other non-technicalThe EMS market is witnessing an upsurge in the demand for electronic segments are projected to spur their market shares over the forecastcircuit boards due to its growing importance in several electronic devices, period. Global electronic contract manufacturing services market by end-use, 2016 (%) Furthermore, the upsurge in demand for electrical vehicles has elevated the need to outsource their electronic component manufacturing,such as mobile phones and tablets, among others. Many OEMs are thereby spurring the EMS market demand in the automotive sector.increasingly outsourcing their circuit assembly requirements to EMS The growing demand in the healthcare industry for medical hardware isservice providers, which substantially increases their profit margins. another key factor spurring growth in this segment. Thus, the escalatingAll these factors are expected to propel the EMS services demand need to optimize resources emerges as a key factor contributing toconsiderably over the next nine years. the EMS demand across several end-use industries such as medical,OEMs are increasingly considering outsourcing their design and automotive, aerospace & defense, consumer electronics, and IT & telecommunication. Regional Insights Asia Pacific is expected to exhibit the highest growth followed by North America, which is attributed to the rise in outsourcing activities in these regions. Asia Pacific held the largest market share in 2016 and is projected to remain the fastest growing segment over the forecast period. China has transformed into a dominant source of electronics production, accounting for more than 35% share in this region. The low-cost labor and mass availability of raw materials are the major drivers for EMS in this region. Furthermore, the growth in North America is majorly driven by the medical and automotive industries. The medical industry is a high mix–low volume sector, which offers higher profit margins to EMS players involved in this region. Various R&D centers and medical institutes are located in North America that work on advanced and portable diagnostic products, which they plan to source through contract manufacturers. All these factors are cumulatively expected to spur the North American contract manufacturing market growth over the forecast period. Key players such as FLEX, Sanmina Corp, and Jabil Circuit, Inc. are planning to expand their productions in Europe by increasing their production plants in this region. In addition, a shift of engineering facilities to the Americas and Europe is estimated to spur the EMS demand in these regions over the next seven years. Competitive Insights The market is competitive owing to the presence of several dominant players such as Foxconn, FLEX, Jabil Circuit, Inc., Sanmina-SCI, Venture Corporation, and Benchmark Electronics, Inc., among others. The presence of well-established players has intensified the industry rivalry, due to which the degree of competition is considerably higher. Market players in the developing economies are offering low-cost, outsourced services to the production and designing sectors to increase their competitiveness. Furthermore, key players are striving to gain a competitive advantage by engaging in mergers & acquisitions.Spotlight on Indian Electronics 2018-19 | 165

GeneratorMarketDiesel Power Engine Market Distributed Generation Market Generator Sales MarketThe diesel power engine market is ex- The distributed generation market is The generator sales market is expected topected to grow from an estimated value expected to grow from an estimated grow from an estimated USD 20.93 Billionof USD 7.58 Billion in 2017 to USD 9.13 USD 60.04 Billion in 2017 to USD 103.38 in 2018 to USD 27.24 Billion by 2023,Billion by 2022, at a CAGR of 3.78% Billion by 2022, at a CAGR of 11.48%. at a CAGR of 5.41%, during the forecastfrom 2017 to 2022. This market growth The market is set to witness growth, due period. The market is set to grow due tois driven by the increasing demand for to increasing mandates to reduce global the increasing demand for uninterrupteduninterrupted and reliable power supply greenhouse gas emissions and rising and reliable power from all end-users, asin developing countries and the growing demand for electricity from the industrial, some of the best power grids are also sub-urbanization and industrialization, which commercial, and residential sectors. Key ject to downtime. Some of the key playershas increased the power density in such Players in Distributed Generation Market: considered in the report are: Caterpillarareas. Some of the Leading key players Siemens (Germany), GE (US), Schneider (US), Cummins (US), Rolls-Royce (UK),considered in the report are: Caterpillar (France), Mitsubishi (Japan), Capstone Mitsubishi (Japan), Yanmar (Japan),(US), Cummins (US), MAN SE (Germa- (US), Doosan (South Korea) Kohler (US), etc.ny), Rolls-Royce (UK), Wärtsilä (Finland),etc.Hydrogen Generation Market Portable Generator Market Variable Speed Generator MarketThe hydrogen generation market is The portable generator market is expected The global variable speed generatorexpected to grow, by value, from an to grow from an estimated USD 1.91 market is projected to reach USD 8.36estimated USD 115.25 Billion in 2017 to Billion in 2017 to USD 2.28 Billion by billion by 2022. The variable speed gen-USD 154.74 Billion by 2022, at a CAGR of 2022, at a CAGR of 3.66%. The market erator market is expected to grow from6.07%. The global market is set to witness is set to grow due to increased weath- an estimated USD 5.79 billion in 2017 togrowth due to government regulations er-related power outages and increased USD 8.36 bil to the increasing emphasisfor desulfurization of petroleum products demand for uninterrupted and reliable on alternative energy production, increas-and rising demand for hydrogen as a power supply in developed and develop- ing government mandates over energytransportation fuel. Some of the Leading ing nations. Some of the key players of efficiency, and growing industrializationKey Players: Air Liquide S.A. (France), Portable Generator Market are as follows: and urbanization. Some of the key playersAir Products and Chemicals, Inc. (U.S.), Honda Motor (Japan), Briggs & Stratton considered in the report are: ABB (Swit-Linde AG (Germany), Praxair, Inc. (U.S.), (US), Kohler (US), Generac (US), Yamaha zerland), GE (US), Siemens (Germany),Showa Denko K.K. (Japan), Hydrogenics (Japan), etc. Wartsila (Finland), Cummins (US), RollsCorporation (Germany), Proton Onsite Royce (UK), etc.(U.S.), Nuvera Fuel Cells, LLC (U.S.),Messer Group GmbH (Germany), etc. SpoStpligothlitgohnt oInndIinadniaEnleEclterocntriocnsic2s01280-1189-1|9166

High Priority Market | Smart Meters THE SMART METERS MARKET IS EXPECTED TO GROW FROM AN ESTIMATED USD 12.79 BILLION IN 2017 TO USD 19.98 BIL- LION BY 2022, REGISTERING A CAGR OF 9.34% FROM 2017 TO 2022. THE GLOBAL MARKET IS WITNESSING A SIGNIFICANT GROWTH, WHICH IS DRIVEN BY GOVERNMENT POLICIES, EN- ERGY CONSERVATION, INCREASING SMART GRID DEPLOY- MENT, AND UTILITIES URGE TO ENHANCE DISTRIBUTION EFFICIENCY.Smart Meters MarketResidential – the largest smart meters market by largest market for smart meters in 2016. AMR is a metering technologyapplication that collects consumption data from the meters and transfers it to a central database (in the utility station) for billing and other purposesThe smart meters market has been classified based on application, (one-way communication only). It is the initially developed smartinto three segments, namely, residential, commercial, and industrial. metering technology and, hence, it has widely been adopted since itsThe residential segment accounted for the largest market size, in inception. North America and Europe are the regions that have muchterms of value, in 2016. The meters measure the electricity, water, and embraced this technology. It is less costly when compared to thegas consumption and communicate this to the central utility system. Advanced Metering Infrastructure (AMI) and, hence, has a high marketThe installations of these devices in the residential sector helps in size.reducing CO2 emissions globally as the consumer’s inclinationtowards peak time savings of energy would increase. The increasing North America: The leading market for smart metersresidential construction activities and government mandates such asthe European Union 20-20-20 policy, which aims to convert 80% of The North American market dominates the smart meters market duringthe installed meter base to smart one, have ensured the growth in the the forecast period. In North America, the growth of the smart metersdemand for smart meters. market can be attributed to focus on electricity, water, gas, monitoring and prevention of leakage, and the repair and upgrade of agingThe AMR technology segment would dominate the infrastructure. Lot of smart meters rollouts are taking place in countriesglobal smart meters market such as the U.S., Canada, and Mexico which would impart growth in the North American region.The Automatic Meter Reading (AMR) segment was estimated to be theSome of the key players considered in the report are:• Itron, Inc. (U.S.),• Kamstrup A/S (Denmark),• Holley Metering, Ltd. (China),• Honeywell International, Inc. (U.S.),• Toshiba Corporation (Japan), etc. Spotlight on Indian Electronics 2018-19 | 167

High Priority MarketsMobile PowerPlant MarketThe mobile power plant market is expected to grow from power plant. The increasing investments in remote area electrificationan estimated USD 1.39 Billion in 2017 to USD 1.73 Billion in the Sub-Saharan African region and a strong presence of onshore oilby 2022, at a CAGR of 4.56% during the forecast period. & gas rigs, especially in the Middle East, drive the market growth in theThis growth can be attributed to factors such as lack of region.power infrastructure in the world, increasing demand Key players:for electricity in remote areas, and frequent natural • GE (US),disasters. • Siemens (Germany), • APR Energy (US),The natural gas/LPG segment is estimated to hold the • Kawasaki Heavy Industries (Japan),largest share of mobile power plant market, by fuel type • PW Power Systems (US), • Metka (Greece),Natural gas/LPG segment held the largest share of the mobile power • Solar Turbines (US),plant market in 2016 and is expected to grow at a decent pace during the • Turbine Technology Services (US),forecast period. The large market share of this segment can be attributed • Vericor (US),to the rising investments in remote area electrification in the Sub-Saharan • Mapna (Iran),Africa region. • Meidensha (Japan), • Ethos Energy (UK), etc.The 21-50 MW segment is estimated to be the largest segment of themobile power plant market, by power rating, in 201721-50 MW is estimated to be the largest segment of the mobile powerplant market, by power rating, in 2017. 21-50 MW mobile power plants aremainly used for large projects such as electrification of village or coastalareas and emergency power requirement. Countries such as Indonesia,Angola, Nigeria, and India are showing rapid growth in the 21-50 MWmobile power plant segment due to the recent increase in demand forelectricity in remote areas.Middle East & Africa: The leading regional market inmobile power plantThe Middle East & Africa is estimated to be the largest market for mobileOffshore Wind MarketThe global offshore wind market is projected to grow at a CAGR of whereas, installing wind turbines in deep water becomes expensive due15.32% from 2017 to 2022, to reach a market size of USD 55.11 Billion to high maintenance cost. However, offshore wind turbines are gettingby 2022. The global market is witnessing a significant growth due to installed in all three water locations depending on the region, turbinerising energy demand coupled with increasing share of renewables in the capacity, and wind speed. Shallow water condition mostly prevails inpower generation mix, energy efficiency mandates demanding carbon the European countries due to favorable weather conditions. The majoremission reduction, and government incentives supporting renewable players that provide turbines which can be installed in shallow waterenergy deployment. includes Siemens AG (Germany) and MHI Vestas (Denmark) among others.Shallow water- the largest offshore wind market by location The turbine component is expected to be the largest segment for theAmong the three water depth location for offshore wind turbines, shallow offshore wind marketwater is expected to hold the largest share. The development of shallowwater is generally cost effective due to better weather conditions, The turbines accounts for the maximum cost of the total offshore wind project. It is the most important component of an offshore wind farm. The three components such as nacelle, rotor, and tower comprises the largest share of the capital cost, whereas, the substructure represents comparatively lesser share of the capital expenditure, mainly in shallow water locations. Companies are upgrading and increasing the turbine size due to advanced technologies and to increase energy efficiency. Moreover, larger the wind turbine, the more energy they produce each time the turbines rotate. Therefore, turbine manufacturers are continuously upgrading and expanding their product portfolio to contribute to the ever increasing demand for high capacity wind turbines. Asia-Pacific: The second largest market for offshore wind The market in this region is expected to grow at the second position followed by the market in Europe, due to its growing trends such as increasing urbanization and industrialization which is leading to higher demand in the power sector. The countries are focusing on power generation through renewable energy sources and the offshore windSpotlight on Indian Electronics 2018-19 | 168

High Priority Marketsforms an integral part of the renewable based power generation. • Siemens AG (Germany),Technological advancement and clean energy consumption would • ABB, Ltd. (Switzerland),further propel wind power deployment and open up opportunities in • MHI Vestas (Denmark),the emerging markets of Asia-Pacific, especially in countries like China, • General Electric (U.S.),Japan, and South Korea as they are looking for an alternative source of • EEW Group (Germany),energy to diversify their energy mix to reduce CO2 emissions. The other • A2Sea (Denmark),major drivers include strict government regulations on energy efficiency. • Nexans (France, etc.Key Players:Oilfield Equipment Rental MarketThe oilfield equipment rental market is expected to grow demand for onshore oilfields.from an estimated USD 16.99 Billion in 2017 to USD 20.55Billion by 2022, at a CAGR of 3.87%. The global oilfield North America: The leading market for oilfield equipmentequipment rental market is set to witness growth, due rentalto technological advancement in oilfield equipmentand increase in global investments in exploration and North America is expected to dominate the global oilfield equipmentproduction. rental market, given growing unconventional hydrocarbon production in the region. The region is the new swing producer in global oil marketsThe drilling equipment is expected to hold the largest owing to the boom in production from both shale operations and deepshare of the oilfield equipment rental market, by water exploration and production in the Gulf of Mexico. Exploration andequipment production activities in the region are also expected to gain momentum with increased capital spending by major oil companies. All these factorsThe drilling segment dominated the oilfield equipment rental market. are expected to drive the North American oilfield equipment rental market.Extensive shale mining is being carried out in North America andtechnological advancement in the drilling equipment used in such Key Players:unconventional shale reserves is expected to drive the drilling equipmentsegment. • Halliburton Company (U.S.),Onshore is the largest segment in the oilfield equipment • Schlumberger Limited (U.S.),rental market • Weatherford International, PLC (Switzerland),With regard to the application segment, onshore segment in the oilfieldequipment rental market is expected to be the largest market in 2017. • Superior Energy Services, Inc. (U.S.),Rising demand for rental equipment from China, Southeast Asia, and theMiddle East would drive the onshore segment. The presence of huge • Oil States International, Inc. (U.S.),onshore shale reserves in the U.S. and Australia, is likely to boost the • Parker Drilling Company (U.S.), • Bestway Oilfields (U.S.), • Certified Oilfield Rentals, LLC (U.A.E.), • Circle T Service & Rental, Ltd. (Canada), • Ensign Energy Services, Inc. (Canada), • John Energy, Ltd. (India), • Key Energy Services (U.S.), • Seventy Seven Energy, Inc. (U.S.), • KIT Oil & Gas (U.A.E.), • Black Diamond Group (Canada), • Savanna Energy Corporation (Canada), • TechnipFMC, PLC (U.K.), • Amik Oilfields Equipment & Rentals (Canada), • Basic Energy Services (U.S.), BoisPerforating Gun MarketThe perforating gun market is expected to grow from an The growth of this segment is primarily driven by the advancedestimated USD 749.0 Million in 2017 to USD 898.7 Millionby 2022, at a CAGR of 3.71%, from 2017 to 2022. The techniques in the upstream sector and the increasing demand for oilglobal market is set to witness significant growth dueto the rising oil & gas production, shale gas exploration, & gas. In some cases, oil & gas operators still rely on vertical drill wells where the oil/ gas reserves are available at a short depth from the surface. Furthermore, vertical wells are the mostincrease in average well depth over the years, and preferred form of wells as they can be further fracturedgrowing complexity of reservoir conditions. and converted into unconventional wells once oil productionThe vertical well segment is expected to hold starts decreasing. These factors will drive the vertical well segment.the largest share of the perforating gunmarket, by well type The low pressure segment is expected to be the fastest- growing segment of the perforating gun market, by wellMost oil & gas companies across the globe pressure.are investing in the upstream oil & gas sector. Thevertical well segment led the perforating gun market in 2016 and is The well pressure segment has been divided into high and low wellexpected to dominate the market. pressure. The high-pressure wells are hostile in nature. Despite recent developments in well technology, the regular instruments are unable to sustain the high pressure and high temperatures in these wells. High Spotlight on Indian Electronics 2018-19 | 169

High Priority Marketspressure and high temperature wells require special instruments and 460,000 bps. Such a sudden rise in production clearly indicates that thematerials. They also require extra preventive measures and experience country is moving toward becoming an independent oil country. Hence,as they are considered volatile reservoir environments. Thus, the need the US presents an opportunity for the perforating gun market.for instruments for high pressure environments provides companiesthe opportunity to customize perforating guns using special materials. Key Players:Regions such as North America and Asia Pacific are expected to drive themarket for perforating guns mostly due to ongoing investments in shale • Schlumberger (US),gas exploration. • Weatherford (US),North America: The leading market for perforating guns. • Baker Hughes (US),The market in North America is expected to dominate the globalperforating gun market. The EIA has revised the US oil productivity by • Halliburton (US), • Dyna Energetics (US), etc.Power Electronics MarketThe Power Electronics market is estimated to grow from charging stations are expected to make transportation the largest revenueUSD 39.03 Billion in 2018 to USD 51.01 Billion by 2023, sector for the power electronics industry in the near future. Moreover,at a CAGR of 5.5% between 2018 and 2023. Growing governments’ mandate to develop environmentally friendly vehicles isdemand for energy-efficient battery-power portable expected to create opportunities for the power electronics market.devices and upgrade of power infrastructure and focustoward the use of renewable power sources are some of Automotive vertical expected to hold major share of thethe driving factors for the growth of the market. power electronics marketICs expected to hold a major share of the power Power electronics play a vital role in the automotive segment as theyelectronics market during the forecast period help optimize the use of electrical energy. Increasing concerns over environmental pollution and sustainable growth are boosting the growthPower ICs are suitable for high-frequency range, high power amplification, of the market for hybrid electric vehicles and high-end automobiles. Powerand microwave radiation applications. Currently, the power ICs market electronic components, including MOSFETs and IGBTs, are used as afor industrial, ICT, and aerospace & defense verticals is fueled by various power electronic switch in vehicles to increase the fuel efficiency of thehigh-power and high-frequency applications such as RF, high-frequency vehicle.wireless communication, RADAR, satellite communication, electronicwarfare, radio communication, and microwave radiation fields. Moreover, APAC expected to hold major share of the powerthe increasing demand for ASICs and PMICs for reducing power electronics marketconsumption propels the growth of the market. APAC has been the fastest-growing region in terms of power electronicMarket for transportation application to hold a major products and solutions compared to other regions. The growth isshare of the power electronics market attributed to the presence of large number of automotive and consumer electronics manufacturers in APAC and growing demand for powerThe growth of the market is attributed to the growing use of electronic electronic devices in automotive and consumer applications. Moreover,devices in the automotive vertical for charging stations, car safety, the growing demand of industrial and energy & power verticals for powerauthentication, mobile security, and others. Moreover, large-scale electronic devices helps the market to grow further in the region.production of HEVs and EVs and the rising demand for electric vehicle Key Players: Infineon Technologies (Germany), Texas Instruments (US), On Semiconductor (US), STMicroelectronics (Switzerland), Mitsubishi Electric (Japan), Fuji Electric (Japan), Renesas Electronics (Japan), Toshiba (Japan), NXP Semiconductors (The Netherland), Vishay Intertechnology (US), Maxim Integrated Products (US), SEMIKRON (Germany), ABB (Switzerland), Hitachi (Japan), Analog Devices (US), ROHM Semiconductor (Japan), Microsemi (US), Littelfuse (US), Microchip Technology (US), and Danfoss (Denmark) are some of the major players in the power electronics market.Recloser Market increasing urbanization and industrialization, growing distribution automation for power quality and reliability, The recloser and expanding distribution network. market (including the sectionalizer The electronic recloser segment is expected to hold the market) is largest share of the recloser market expected to grow from an estimated Electric recloser control is used in most three-phase and some single- USD 2.14 Billion in phase reclosers, due to its features, which include greater flexibility, 2017 to USD 2.71 advanced protection and automation functionality, and ease of Billion by 2022, at programing in comparison to the hydraulic recloser control. This recloser a CAGR of 4.88%. is highly customizable with a wide range of accessories and can solve The market is several application problems. set to witness growth, due to Increasing preference for recloser and sectionalizer of capacity up to 15 kV Spotlight on Indian Electronics 2018-19 | 170

High Priority MarketsRecloser and sectionalizer of up to 15 kV voltage rating are extensively in smart grid technologies that include distribution automation are likely toused in residential applications in distribution network. The increasing drive the market during the forecast period in Asia Pacific.urbanization and growing residential sector and commercial buildings Key Players:in developing countries would accelerate the growth of the recloser and • ABB (Switzerland),sectionalizer with a voltage rating of up to 15 kV segment. • Schneider (France), • NOJA Power (Australia),Asia Pacific is expected to be the leading market for • Siemens (Germany),reclosers • Eaton (Ireland).Asia Pacific is expected to lead the recloser market. The inefficiency ofexisting distribution infrastructure, new installation of distribution lines, andrefurbishment of older distribution system is anticipated to be the highestin the Asia Pacific region. Moreover, the increasing demand for electricalenergy due to urbanization and industrialization and the rising investmentsSmart Electric Meter MarketThe smart electric meter market is projected to grow forecast period and is projected to dominate the market during thefrom an estimated USD 9.27 Billion in 2018 to USD 11.33 forecast period. Three-phase meters are mostly used in industrialBillion by 2023, at a CAGR of 4.11%, from 2018 to 2023. applications and in large commercial applications. The premium price forThe market is set to witness growth due to the increased the three-phase meters over the single-phase meters and the growth inneed for efficient data monitoring systems coupled with the number of industries and commercial facilities drive the installations offavorable government policies for smart meter rollout, the three-phase smart electric meters.improved cost savings owing to the use of smart metersmaking it a definitive case for adoption, and increasing The Power Line Communication (PLC) segment isemphasis on renewable energy sources globally. expected to hold the largest share of the smart electric meter market, by communication technology typeThe residential segment is expected to hold the largestshare of the smart electric meter market, by end-user The PLC segment is the fastest-growing market and is projected to dominate the market. The PLC is the most commonly usedThe residential segment of the global smart electric meter market is communication technology due to its advantages such as the use of theexpected to hold the largest market share, and grow at the second-fastest existing utility infrastructure of poles & wires, improved cost-effectivenesspace during the forecast period. The installation of smart electric meters for rural lines, and usability in a challenging terrain. The technology isin residential places would help in reducing the dependence on fossil mature with open standards and several vendors in the market.fuels, as the smart electric meters can assist the consumers to monitor,regularize, and reduce their consumptions from the grid, and generators, Asia Pacific: Key market for the smart electric meterand further integrate their consumptions from renewable energy sources marketsuch as solar installations. The widespread use of sophisticatedelectrical, electronic, and data equipment is driven by the growing Asia Pacific is expected to be the largest smart electric meter market,importance of power management solutions also driving the smart electric by region. Asia Pacific is the most-populated region in the world andmeter market. consequently witnesses a high demand for electricity. The rise in investments in smart grid technologies and smart cities, the increaseThe three-phase segment is expected to grow at the in the number of data centers, and a surge in IT hubs and commercialfastest pace in the smart electric meter market, by institutions drive the smart electric meter market in the region. Chinaphase accounts for the largest share owing to the large-scale rollout plans; the country accounted for the highest installed generation and distributionThe three-phase segment is the fastest-growing market during the capacity in the Asia Pacific region, resulting in an increased demand for smart electric meters. Key Players: • Itron (US), • Landis+Gyr (Toshiba Corporation) (Switzerland), • Jiangsu Linyang (China), • Wasion (China), • Aclara Technologies (Hubbell Incorporated) (US), • Schneider (France), • Siemens (Germany), • Honeywell (US), • Iskraemeco (Slovenia), etcSolar Backsheet MarketThe solar backsheet market is expected to grow from to enable the adoption of renewable technologies.an estimated USD 1.71 Billion in 2018 to USD 2.40 Billion Another factor driving the demand for solar backsheet isby 2023, at a CAGR of 7.02%, from 2018 to 2023. This the need to reduce carbon emissions.market growth is driven by increasing global solar PVinstallations as well as policy support from governments The utility application segment is expected to holdSpotlight on Indian Electronics 2018-19 | 171

High Priority Marketsthe largest share of the solar backsheet market, by market in Asia Pacific and is heavily investing in solar PV to reduce carbonapplication emissions and fulfill its power needs. The other key markets in Asia Pacific are India, South Korea, and Australia. Asia Pacific accounted forThe utility segment is expected to have the largest solar backsheet market more than 50% of the solar backsheet market in 2017. North America isshare, by application, from 2018 to 2023. This segment is driven mainly expected to be the second fastest-growing market for solar backsheets.by the global increase in installations of solar power plants, both for utilityand distributed power generation applications, to meet the global power Key Players:demand. • Cybrid (China),Asia Pacific is expected to be the fastest-growing solarbacksheet market. • Jolywood (China),Asia Pacific is expected to be the largest and the fastest-growing market, • Coveme (Italy),by region, during the forecast period. This is due to the significantincrease in solar PV installation in China and India. China is the largest • Krempel (Germany), • Hangzhou First (China),etc.Surge Arrester MarketThe surge arrester market is expected to grow from an Polymeric surge arresters have replaced porcelain in the medium voltageestimated USD 1.56 Billion in 2018 to USD 2.01 Billion segment to a large extent due to these benefits. Polymer technology isby 2023, at a CAGR of 5.11%. The positive growth rate of also used increasingly in high voltage power systems even up to 800 kV.this market can be attributed to investments in smartgrids and energy systems, the need to reduce equipment The extra-high voltage surge arrester market is expected to grow at a highfailure caused by frequent voltage spikes, and aging ratepower infrastructure. Extra-high voltage surge arresters find application in utilities to protectThe polymeric segment is expected to hold the largest switchgears, transformers, circuit breakers, and overhead lines, amongshare of the surge arrester market others. In the US the majority of the transmission infrastructure was installed between 1960 and 1970; this aging infrastructure needs to bePolymeric surge arresters offer numerous benefits such as light weight, replaced, which is expected to drive the surge arrester market.extremely high mechanical resistance, and safe short-circuit behavior. Europe is expected to dominate the surge arrester market Europe is expected to hold the largest share of this market during the forecast period. European utilities are in the process of revaluating their assets and are shifting their focus to long-term sustainable business. The power generation, transmission, and distribution systems in the region are comparatively mature. The EU is focusing on upgrading its aging infrastructure, integrating renewable energy sources such as solar and wind power, and building interconnections to enable more efficient power and energy trading. Key Players: • ABB (Switzerland), • Siemens (Germany), • Eaton (Ireland), • Hubbell (US), • Schneider (France), • Mitsubishi Electric (Japan), etc.Switchgear MarketThe switchgear market is expected to grow from an the market. The transmission and distribution utilities segment is alsoestimated USD 88.71 Billion in 2017 to USD 125.10 expected to grow at the fastest rate.Billion by 2022, at a CAGR of 7.12%, from 2017 to2022. The global market is set to witness a significant The growth of the transmission and distribution utilities segment isgrowth due to the continued growth of construction primarily driven by increasing investments in sub-station automation,and developmental activities, increasing access to modernization of electric grid, and smart utilities which includes smartelectricity, and growth of renewable power generation grids and smart meters. This would enhance the protection by decreasingprojects. energy losses, due to poor operational efficiency of traditional equipment. This would ultimately create new revenue pockets for the switchgearThe transmission and distribution utilities segment is market.expected to hold the largest share of the switchgearmarket, by end-user The gas insulated switchgear is expected to hold the largest share of the switchgear market, by equipmentThe transmission and distribution utilities sub-segment of the end-usersegment led the switchgear market in 2016 and is projected to dominate The gas insulated switchgear sub-segment of the equipment segment led the switchgear market in 2016 and is projected to dominate the market. Spotlight on Indian Electronics 2018-19 | 172

Rising energy demand and extension/replacement of old switchgear at High Priority Marketssub-stations can drive the gas insulated switchgear equipment in theswitchgear market. However, the circuit breaker sub-segment accounted North America: The leading market for switchgearfor the second largest share in 2016 in the switchgear market, based onthe equipment segment. The market in Asia Pacific led the global switchgear market in 2016. Increasing grid investments especially in developing economies, such as China and India and plans for electrification in remote areas in countries, such as Vietnam, Indonesia, and the Philippines are expected to drive the switchgear market in Asia Pacific. Indonesia aims to achieve 90% electrification rate by 2025 and the countries, such as the Philippines and Malaysia have similar plans. Rise in investments in smart grid technologies including distribution grid automation, smart meters, and demand response systems in countries, such as Japan, South Korea, and Australia would create opportunities for the switchgear market in the Asia Pacific region. Key Players: • ABB Ltd. (Switzerland), • General Electric Company (US), • Siemens AG (Germany), • EATON CORPORATION plc (Ireland), • Hitachi Ltd. (Japan), • Schneider Electric SE (France), • Mitsubishi Electric Corporation (Japan)Laminated Busbar MarketThe laminated busbar market is expected to grow from • Mersen (France),an estimated USD 743.2 Million in 2017 to USD 1,004.5 • Idealec SAS (France),Million by 2022, at a CAGR of 6.21%. The market is set to • Sun King Power Electronics Group Limited (China), etc.grow due to the increasing demand for electric vehiclesand hybrid electric vehicles to reduce pollution in tier1 and tier 2 cities around the world and the increasedshare of renewable energies in the primary energy mixglobally.The power electronics and silicon carbide segment isexpected to be the largest market for laminated busbars,by end-userLaminated busbars are used in a wide range of power electronics andsilicon carbide applications. The increased adoption of electric vehicles,hybrid electric vehicles, and motor drives is leading to the increaseddemand for power stacks. These factors are expected to drive the powerelectronics and silicon carbide end-user segment of the laminated busbarmarket.The epoxy powder coating segment is expected to be thelargest segment of the laminated busbar market in 2017The epoxy powder coating segment is expected to be the largest marketfor laminated busbars, by insulation, in 2017. Epoxy materials are knownfor their excellent adhesion, chemical and heat resistance, excellentmechanical properties, and very good electrical insulating properties.Epoxy-based insulation is relatively cheaper than other insulationmaterials, leading to the segment accounting for the largest expectedmarket share in 2017.Europe is expected to lead the laminated busbar marketThe European market is expected to lead the laminated busbar market,by region, during the forecast period. The increasing demand for electricvehicles and hybrid electric vehicles and the continuously increasingshare of renewable energies are the main factors driving the growth of theEuropean market.Key players:• Rogers Corporation (US),Amphenol Corporation (US),Spotlight on Indian Electronics 2018-19 | 173

High Priority Market | Power SectorGlobal FlipChip MarketThe Global Flip Chip Market to grow at a CAGR of 6.22% during increasing use of ICs in different industries has increased thethe period 2018-2022. The driver influencing this market is the demand for customized ICs as each industry has its own needs andrise in demand for high functionality devices. The demand requirements.for high functionality devices such as smartphones, smarttelevisions, smart wearables, and laptops is increasing due to Key Companies: Advanced Semiconductor Engineering, Amkorthe increase in per capita income and urbanization. Flip chip Technology, Intel, Samsung Electronics, Taiwan Semiconductortechnology is used to improve existing devices. Manufacturing CompanyThe trend affecting this market is the increasing useof semiconductors in automobiles. Automobiles usesemiconductors in several components such as infotainmentsystems and navigation systems. The use of electronic controlunits (ECUs) in engine control systems, anti-lock braking systems(ABSs), cameras, and safety sensors has also increased.The challenge affecting this market is the need for customizedICs. ICs are used in several industries such as electronics, IT andtelecommunication, automobile, healthcare, and aviation. TheGlobal Organic PolymerElectronics MarketThe global organic polymer electronics market is expected to grow at a For instance, the global demand for TV setsCAGR of 22.1%. in 2017 has gone up by almost a million TV sets compared to last year and is expectedOrganic electronic devices are likely to become a low-cost alternative to increase because of the emergingto the traditional inorganic electronic applications, due to low material markets in Asia.utilization and simple processing. Since organic electronic devices aremore energy-efficient and eco-friendly than today’s electronics, these Among the applications of organic polymerdevices contribute to a more sustainable electronic world. electronic devices, the organic display is the largest revenue generating segment sinceThe need for reduction of cost of production, weight, and power display devices like OLEDs find applicationsconsumption of electronic goods are the key factors driving the market. in laptops, tablets, TV sets, and lightings, etc. Asia-Pacific is home to almost 3/4th of the global electronics manufacturing industry, which is the primary application area for organic electronics. Key Companies • Au Optronics Corporation • BASF • Bayer Materialscience AG • E. I. Du Pont De Nemours And Company • Universal Display Corporation (UDC) • FlexEnable • ISORG • LG Display • Samsung Display • Koninklijke Philips N.V.Spotlight on Indian Electronics 2018-19 | 174

High Priority Market | Power SectorGlobal semiconductor packagingmaterials marketThe global semiconductor packaging materials market reached $16.7 • Liquid crystal polymer (LCP) under consideration as a possiblebillion in 2017. While slower growth of smartphones and personal material option because of its good electrical performance and lowcomputers – the industry’s traditional drivers – is reducing material moisture absorption, especially for mmWave applications such as 5Gconsumption, the slowdown was offset by strong unit growth in thecryptocurrency market in 2017 and early 2018. Flip chip package • Adoption of low-cost package solutions such as MIS and othershipments into the cryptocurrency market, while providing a windfall to routable-QFN technologiesmany suppliers, are not expected to remain at high levels. • PPF QFN volumes are rising with automotive applications, driving aThe outlook shows that, despite growth in automotive electronics and requirement for roughened plating to deliver needed reliabilityhigh-performance computing, continuing price pressure and decliningmaterial consumption will constrain future material revenue growth to • Expansion of photoresist plating capability for selective plating ofsteady single-digits, with the materials market forecast to reach $17.8 leadframesbillion in 2021. IC lead frames, under fill, and copper wire are amongthe materials segments that will see single-digit unit volume growth • Thermally enhanced and high-voltage mold compounds for powerthrough 2021. and automotive devicesLaminate substrate suppliers participating in the sale of flip chip • Thermally conductive die attach materials other than solder die attachsubstrates for cryptocurrency saw volume increases in 2017, but for power applicationsthis segment continues to be battered by increased use of multi-diesolutions and the shift to wafer level packages (WLPs), including fan- Report highlights include:out WLP, slowing growth. Wafer-level packaging (WLP) dielectrics andplating chemistry suppliers will experience stronger revenue growth as • Laminate substrates represent the largest revenue segment of thethe adoption of advanced packaging continues. materials market with more than $6 billion in sales for 2017.Over the next several years, advances in the semiconductor materials • Overall lead frame shipments are forecast to grow at a 3.9market will present a number of opportunities driven by trends percent CAGR from 2017 through to 2021, with LFCSP (QFN type)including: experiencing the strongest unit growth, an 8 percent CAGR.• Continued adoption of FO-WLP including FO-on-substrate solutions • Following five years of decline, gold wire shipments increased in bothwith high density geometries down to 2µm lines and spaces 2016 and 2017 though represent just 37 percent of the total bonding wire shipments in 2017. • Liquid encapsulant revenues totaled $1.3 billion in 2017 with single- digit expected through 2021. LED packaging applications are driving the revenue growth though downward pricing pressures are a constant in the market. • Die attach materi al revenues reached $741 million in 2017 with single digit growth to 2021. DAF materials will experience higher unit growth, though downward pricing trends continue. • Solder ball revenues reached $231 million in 2017. The revenue outlook depends on fluctuations in metal pricing. • The wafer-level plating chemical market was put at $263 million in 2017 with strong growth through 2021. RDL and Cu pillar will be the key growth segments.Set-Top Box MarketThe global set-top box market is expected to grow at USD31.67 Billion period. Whereas, Asia-Pacific countries like China, Japan and India is anby 2023, at 6% of CAGR between 2017 and 2023. The adoption of hybrid emerging market for set-top box market and expected to be the highestboxes is boosting the market growth due the increasing demand of over- CAGR in the coming years.the-top content services. In 2017, Facebook Inc. is creating an app fortelevision set-top boxes, including Apple Inc’s Apple TV. Key Players:Digital terrestrial television is considered to gain demand in market due The prominentto increasing use of Wi-Fi which allows connectivity through web. The players in theIP transmission recording features and higher storage specifications are global set-topdriving the market growth of set top box in the market. The factors that box marketboost the growth market are the increasing adoption of digital terrestrial are – Huaweitelevision broadcasting, BS digital broadcasting, and CATV broadcasting Technologieswhich is driving the market growth in the forecast years. In 2017, Dish TV Co. Ltd.launches new generation card less HD set-top which is portable and cost (China),effective. Apple Inc. (U.S), GoogleNorth America is one of the leading region across the world in terms of Inc. (U.S),market share in set-top box market due to increasing demand of hybrid Samsung Group (South Korea), Arris International Plc. (U.S), EchoStarset-top box which is propelling the market growth. The set-top box market Corporation (U.S), Humax (U.K), Sagemcom (France), Technicolor SAin Europe region is expected to witness rapid growth in the forthcoming (France), Skyworth Digital (China) and among others.Spotlight on Indian Electronics 2018-19 | 175

High Priority Market | Power SectorSelf-Healing GridMarketThe self-healing grid market is expected to grow from an estimated value Asia Pacific:of USD 1.72 Billion in 2017 to USD 2.66 Billion by 2022, at a CAGR of The fastest-9.07% from 2017 to 2022. growing market forThe global market is set to witness significant growth due to government self-healingpolicies and legislative mandates regarding T&D utilities, complexity in griddistributed energy generation, and the need for protection of electricutilities from cyber attack. Advancement in communication technologies In Asia Pacific, governments are focusing on increasing gridpresents a significant opportunity for the self-healing grid market. modernization. The Chinese market is expected to dominate the market in Asia Pacific. The self-healing grid market is expected to grow atPublic Utility: The larger segment, by end-user a significant rate in countries such as India, Japan, and South-East Asian countries. The market in North America is expected to dominateThe public utility segment is expected to hold the majority share of the the global self-healing grid market due to increasing investments inself-healing grid market during the forecast period. In North America the energy sector and stringent regulatory frameworks related to theand Asia Pacific, the majority of the utilities are public or nationalized. implementation of self-healing grid solutions.The public utilities such as Duke Energy, NextEra Energy, and PG&E areinvolved in the implementation of self-healing grid. These factors have The key players:resulted in the higher market share of the public utility segment in the self-healing grid market. • ABB (Switzerland),The hardware segment accounts for the larger share of the self-healing • Siemens (Germany),grid market, by component • GE (US),The hardware segment is expected to be the larger market, bycomponent, from 2017 to 2022. The factors driving the market for • Eaton (Ireland),hardware include the increasing deployment of additional sensing as wellas communication devices as a part of self-healing grid solutions. • Schneider Electric (France).Converter Station Market The majority of the HVDC converter station market is dominated by these global players due to their wide regional presence and are established brand names. The LCC technology is expected to hold the largest market share in the HVDC converter station market from 2017 to 2022 The rise in the use of thyristor valves has increased the demand for LCC HVDC systems because of the better reliability of the thyristor technology. In the recent years, technical improvements and compact designs with large-capacity thyristors (up to 8.5 kV, 4 kA) have contributed to the progress of HVDC applications in the Asia Pacific region, because of which there have been large UHVDC projects with the LCC technology in China. The trend is expected to continue in the by 2022 as the major economies in Asia and Europe such as China and the UK, among others are still struggling to meet the energy requirement in the country. Key Players: • ABB (Switzerland), • Siemens (Germany), • General Electric (US), etc.The HVDC converter station market is expected to grow from anestimated value of USD 7.90 Billion in 2017 to USD 11.57 Billion by 2022,registering a CAGR of 7.92%, from 2017 to 2022. The major factors drivingthe growth of the market is the increasing requirement for cost-effectivesolutions for bulk power transfer and increasing need for connectingasynchronous grids. Due to these, there has been a rapid adoption ofHVDC in Europe and Asia Pacific creating a market opportunity for theHVDC converter station market. Spotlight on Indian Electronics 2018-19 | 176

Hybrid Power High Priority Market | Power SectorSolutions Market The Middle East & Africa is estimated to be the largest marketThe hybrid power solutions market is expected to grow from an estimated for hybrid power solutions till 2021. African countries have lowestUSD 466.5 Million in 2016 to USD 689.5 Million by 2021, registering a electrification rate in the world, which provides a huge opportunity toCAGR of 8.1% from 2016 to 2021. implement hybrid power solutions at large scale.The Middle East & Africa is the largest market for hybrid power solutions Commercial end-users are expected to hold the largest market share of the hybrid power solutions market, by end-users. The commercial segment is expected to hold the largest share in the hybrid power solutions market. Commercial sector include hotels, resorts, schools, or hospitals located at islands or off- grid areas, which do not have grid power supply and are highly dependent on diesel generators for their power requirements. Dependence on diesel and fuel availability is a concern factor which may affect power supply in crucial moments: this creates huge opportunity for implementing hybrid power solutions in commercial sector. Key Players: • SMA Solar Technology AG (Germany), • Siemens AG (Germany), • Huawei Technologies Co., LTD (China), • ZTE Corporation (China), • Flexenclosure AB, LTD (Sweden), • Heliocentris Energy Solutions AG (Germany)Current standing andgrowth potential ofIndia’s Handset MarketSmartphones have been taking the world by storm. Look at the mobile the Ericsson Mobility Report, mobile subscriptions in India are expected tophone advertisements and you will know what we are talking about. rise to 1.4 billion by 2021.While earlier mobile phone advertisements talked only about the product,these days they paint a picture of society. Younger people taunting India has a voluminous smartphone market, and this is one of the reasonstechnologically-challenged older people for not using smartphones, why leading smartphone makers like Apple and Samsung consider thePeople finding directions on Google Maps instead of asking people…that Eastern market when incorporating changes and new features in theiris how powerful smartphones are today. They have changed the face of devices. Since India is a huge market for smartphones, manufacturerssociety and given a new definition to social status. are aware that the wants and desires of Indian customers will have a significant impact on sales.This situation is even more widespread in India, which is the fastest-growing smartphone market in the world. India reportedly accounts That isn’t all. India is also the second-largest telecommunicationsfor nearly 30 million smartphone purchases every quarter, and this market in the world (after China), with over 1.05 billion subscribers.percentage keeps increasing several times a year. According to IDC and The mobile phone market in India has grown exponentially in the past decade, and with the emergence of smartphones, the growth hasSpotlight on Indian Electronics 2018-19 | 177

High Priority Market | Power Sectorincreased substantially. The Indian economy Where online brands are concerned, customers market remains on an upward curve, includingis also affected by smartphone sales, with the are always in for huge discounts and deals. low smartphone penetration, ease of foreignsmartphone market accounting for a significant There are festive offers, inaugural offers, investment in India, and the ascendency ofportion of the GDP. India is also the fourth end-of-season sale, and low-cost EMIs that Long-Term Evolution (LTE).largest economy in terms of usage of mobile enable even the lower middle class to own aapplications. smartphone. Services necessary services have The Indian smartphone industry looks fertile, rolled out smartphone apps, driving people to with new brands entering the market andThe strong and rapid growth of the smartphone learn more about the technology in order to be making space with the existing ones. Withmarket has been made possible by several able to use certain services. The convenience budget phones a big hit with the educatedliberal policies of the Indian government, offered by app cabs and food delivery apps are middle class, more and more brands arealong with huge consumer demand. The also major drivers among the educated middle jostling for space in the segment. At the sametelecom industry today is among the top five class for getting smartphones. time, more expensive models are also gainingemployment opportunity generators in India, popularity. Market researchers predict that itcreating over four million direct and indirect jobs While there are more takers for the budget isn’t too difficult for India to become the leadingover the next few years. Increase in smartphone smartphones, big brands like Apple isn’t too far handset market in the years to come.sales and internet usage along with the behind either. Apple has witnessed a slowdowngovernment’s efforts to increase the penetration in global sales of the iPhone since the past According to the International Dataof technology in rural regions have made this year, and this has led CEO Tim Cook to focus Corporation’s (IDC) Quarterly Mobile Phonepossible. on India, where it has less than 1 per cent of Tracker, the Indian smartphone market market share. Even though it’s a tough market witnessed a healthy 14 percent annual growthA lot of factors have contributed to the rapid for Apple, with local and Chinese brands galore, with a total shipment of 124 million units in 2017,growth of the Indian smartphone market, but India certainly forms an important market for making it the fastest growing market amongstthe two most important ones are the low cost the brand. Apple has begun local production the top 20 smartphone markets globally.of phones and their short shelf life. India is a in India in early 2017, and saw 900,000 iPhonecost-conscious economy, where affordable shipments in the third quarter. India is the world’s third largest smartphoneproducts sell the highest. Not surprisingly, the market, and also continues to hold its positionsub-10,000 segment of smartphones has seen With 4G services entering the Indian market, of being the biggest feature phone marketthe highest sales since 2012. Every smartphone smartphone sales are expected to be at an globally. 2017 has been an exceptionalmaker wants to capitalize on the demand for all-time high. By 2025, India will have 700 million year for this category as it witnessed a 17budget devices with sub-10,000 offerings. internet users, with the telecom market touching percent annual growth after declining for threeFrom local brands like Micromax to Karbonn to Rs. 10 trillion. The India government has consecutive years. While feature phones remainforeign brands like Samsung and HTC, budget been playing a vital role in making the country relevant to a large consumer base in India, thesmartphones have flooded the market. tech-savvy. Some of the policies planed by the Indian telecom operator Reliance Jio shipped government include providing Wi-Fi to 550,000 huge shipments of 4G enabled feature phonesThe growth of the online market has also villages by March 2019 and setting up a 5G taking the leadership position on its maidenstrongly affected the smartphone industry. The India 2020 Forum for the early deployment of quarter in this category. This resulted in a totalgreatest example is Chinese handset maker 5G in India. of 164 million feature phone shipments in 2017Xiaomi, an online brand whose shipments to from 140 million a year ago. In 2017Q4, vendorsIndia grew by 290 per cent in the third quarter of The smartphone market in India is strong shipped a total of 56 million units in the 2017Q42017. While Samsung shipped 9.4 million units, enough to ensure a healthy competition among making it the highest-ever shipments in a singleXiaomi shipped 9.2 million, reducing the gap new, upcoming, and existing brands. There quarter. The category registered a huge 67between the market shares of the two brands. are over 100 mobile phone brands in India percent year-over-year (YoY) growth and 33Market analysts believe that Xiaomi could well right now, and new ones are coming up every percent growth from the previous quarter.overtake Samsung in India. quarter. A number of factors will ensure theITnrdaunsstfroiraml Ceor nMtarorlketThe industrial control transformer market is expected to The abovegrow from an estimated USD 809.2 Million in 2018 to USD 1,500 VA1,039.8 Million by 2023, at a CAGR of 5.14%. The positive power ratinggrowth rate of this market can be attributed to increased industrialusage of industrial control transformers across major controlindustries, booming power sector and augmented power transformersgeneration capacities worldwide, and need to reduce are expectedequipment failure caused by frequent voltage. to grow at a high rateThe three-phase segment is expected to hold the largestshare of the industrial control transformer market Industrial control transformersThree-phase industrial control transformers are mostly used in heavy installed in aboveindustrial applications as it can easily carry high power for the operations. 1,500 VA findAlso, the three-phase power transmission requires less copper and application in oilaluminum, as compared to single-phase, to transfer a certain amount of & gas and power generation industries in various power equipment suchpower. It is the most economical way of power transmission. Therefore, as drafts fans, compressors pumps, and drillers. In oil & gas industries,three-phase industrial control transformer segment is expected to have this equipment works on critical load requirement and need to bethe largest market size during the forecast period. Spotlight on Indian Electronics 2018-19 | 178

High Priority Market | Power Sectorregulated accurately because, in case of voltage inconsistencies, there • Siemens (Germany)is a substantial chance of explosions and is thus expected to drive the • Eaton (Ireland)industrial control transformer market till the forecast period. • Schneider (France) • GE (US)Asia Pacific is expected to dominate the industrial • Hubbell (US)control transformer market • Emerson (US) • Rockwell (US)Asia Pacific is expected to hold the largest share of this market during theforecast period due to industrialization and infrastructural developmentsmajorly in China and India.Key players:• ABB (Switzerland)ITnrsatnrsufmoremnters MarketThe instrument transformers market is expected to resulting in an increased demand for transformers. The country, whichgrow from an estimated USD 7.32 Billion in 2017 to USD is an export-oriented economy, has witnessed an exponential growth9.06 Billion by 2022, registering a CAGR of 4.35%. This in the demand for electricity in the past couple of decades, fueled bygrowth is primarily due to the increasing emphasis on industrialization and infrastructural developments. Meanwhile, the nextalternative energy production, refurbishment of aging strongest economy, India, is also adding up its renewable energy capacityinfrastructure, and huge investments in smart grids and annually. For instance, the country is the third-largest electricity producerenergy systems across the world. in the world and is likely to generate approximately 30 GW of power from renewable energy sources in 2017. This would require grid connected asThe power utilities segment is expected to hold the well as local distribution networks. These factors are expected to drive thelargest share of the instrument transformers market, by growth of the instrument transformers market in Asia Pacific.end-user Key players:The power utilities segment led the instrument transformers market in2016, and is projected to dominate the market during the forecast period. • ABB (Switzerland),The total investment in the transmission and distribution infrastructureover 2014 to 2035 is expected to be USD 6.8 trillion, according to the • Siemens (Germany),International Energy Agency. Approximately, 56% of the total energyinvestment accounts for transmission and distribution. Refurbishment and • Schneider Electric (France),replacement of existing assets contribute 40% and the grid integration ofrenewables accounts for 4%. Instrument transformers are a major part of • GE (US).the transmission and distribution infrastructure, used for measurementas well as protection of the system. Approximately 10% of the totalsubstation cost is dedicated to procurement and installation of instrumenttransformers. With the increasing investments in the power infrastructure,the market for instrument transformers tends to grow.Capacitive potential transformers to be the fastestgrowing segment in the instrument transformers marketWith regard to the type segment, capacitive potential transformers areexpected to constitute the fastest growing market from 2017 to 2022.Capacitive potential transformers are used to measure voltages above66 kV. In these types of transformers, capacitors are used as voltagedividers. These capacitors are connected in series where the voltage droptakes place. Unlike inductive voltage transformers, capacitive voltagetransformers usually have a ferro resonance damping circuit built intothe instrument transformers itself. Apart from voltage measurement,these capacitive voltage transformers are also used as high pass filters.These days transmission lines are used for communication purposes aswell. The information at high frequencies (in MHz) are conveyed throughtransmission lines from one grid to another and is known as Power LineCarrier Communication (PLCC). Capacitive voltage transformers, whenused as high pass filters, helps in PLCC.Asia Pacific: The leading market for instrumenttransformersAsia Pacific is expected to account for the largest market share of 36%in the global instrument transformers market in 2017. Countries suchas China, Japan, and India are investing in grid expansion projects toincrease their distribution grid reliability. China accounted for the largestshare of the instrument transformers market in Asia Pacific in 2016. Ithas the highest installed power generation and distribution capacities,Spotlight on Indian Electronics 2018-19 | 179

High Priority MarketsPower electronics for EV/HEVOutlines Txapartegi, Technology & Market Analyst from Yole. “We forecast a 50% CAGR for the 2017-2023 period, for mild hybrids, because these low cost• EV/HEV sales will achieve a 28% CAGR between 2017 and 2023. electrified vehicle models are attractive. Their approach can be easily implemented in any car, from city cars to higher end luxury models.”• By 2023, IGBT power module market for automotive applications willreach US$ 2.3 billion. In terms of the geographical split for the potential of the EV/HEV market, Yole’s analysts describe the evolution of the main markets and highlight• Cost-effective technology innovations are at the center of the EV/HEV the main divergences.industry. For instance, China today is strongly focused on BEV and PHEVIn 2016, Yole Développement (Yole) pointed out the impressive growth segments. Last year China accounted for 50% of global sales in theseof the EV/HEV industry and its huge impact on the power electronics categories, confirms the market research and strategy consultingindustry with numerous technical issues. Two years later, cards have company.been handling, the playground is ready and the game should revealsome surprises. In a dynamic context showing a 28% CAGR between And, looking at the evolution of the giant Asian country, it seems that2017 and 2023, Chinese car manufacturers become today major players this predominance will continue in the future. Countries like Japan or thein the EV/HEV industry while European companies, strongly involved in USA are more focused on full HEV than these full EV models. It’s alsothe development of power modules and components announce their interesting to highlight that even if China represents a huge market forleadership with innovative technologies. EV/HEV, local companies are involved in car manufacturing, but much less at tier-1 component or power module supplier level. At these stagesEV/HEV sales continue to surge. In 2017, people bought European, American and Japanese companies are predominant, even in1.2 million BEV and PHEV, a 52% increase compared to the Chinese supply chain.2016. Full and mild HEV sales accounted for 2.8 millionunits last year, a 22% year-to-year increase. Having assessed how each type of electrified vehicle market will evolve, Yole expects double-digit CAGRSeveral European car manufacturers also launched their 48V mild hybrid between 2018 and 2023. This means some 10 million EV/models in 2017. This cost-effective solution, which electrifies vehicle HEVs will be sold by around 2020, and up to 18 million byauxiliary systems and at the same time reduces CO2 emissions, will 2023, across all categories.proliferate in 2018-2019 among all European car makers, followed by theChinese ones. Pushed by aggressive legislation, car manufactures select the way of electrification. The full HEV segment will drive the IGBT power module“48V system will rapidly boost the market”, explains Mattin Grao market, with IGBT modules used for EV/HEV. The market for IGBTs in the EV/HEV sector is expected to be worth almost US$2.3 billion by 2023. “In a compact car the maximum power of the motor is 60kW, while the hybrid systems used in medium and large vehicles have inverter power exceeding 160kW,” explains Dr. Elena Barbarini, Project Manager, Power Electronics and Compound Semiconductors, System Plus Consulting. However, when converting an existing petrol vehicle to a hybrid version, the available space in the engine compartment is often so limited that it is difficult to accommodate a PCU. Thus, it is necessary that the PCU, which controls the traction motors of HEVs, get smaller, with higher power density. To achieve these targets, manufacturers have developed different solutions, such as reducing wire bonding or using a double-sided cooling structure to efficiently cool the power semiconductor chips.Power Management System MarketThe global power management system market is estimated to reach USD 3.77 Billion in 2017 and is projected to reach USD 5.26 Billion by 2022, growing at a CAGR of 6.88%. The market is set to grow due to the increasing demand for energy efficiency in the manufacturing sector, rising installation of renewables in the industry, and rising adoption of IoT and cloud-based platforms. The power monitoring and control segment is expected to hold the largest share of the power management system market, by module The power monitoring and control module helps in measuring and controlling vital parameters such as frequency, voltage, energy demand, current and voltage control, and data analysis for overall power quality control. The segment is expected to be driven by the increasing demand for energy efficiency in the manufacturing sector in the Asia Pacific region.Spotlight on Indian Electronics 2018-19 | 180

High Priority MarketsEmerging economies such as China and India are witnessing substantial The market in Asia Pacific is expected to lead the power managementgrowth in the manufacturing sector with favorable government policies system market, by region. The increase in the manufacturing sector alongsupporting investments in the sector. The shale oil & gas boom in North with other industries such as metals and mining and data centers is theAmerica is expected to another key driver for the growth in the power key factor driving the power management system market in Asia Pacific.monitoring and control segment. The growth in shipbuilding particularly for offshore support vessels and commercial vessels is another key driver for the growth in the market.The marine segment is expected to dominate the powermanagement system market, by end-user, in 2017. Key Players:The marine segment comprises marine vessels such as offshore support • ABB (Switzerland),vessels, cargo vessels, LNG tankers, cruise ships, and defense vessels. • Eaton (Ireland),Marine vessels consume substantial amounts of diesel or natural gas to • Siemens (Germany),power the vessels. Power management systems in marine vessels ensure • GE (US),optimized load distribution in marine vessels, generator start and stop, • ETAP (US),automatic load shedding, switching operations, and fuel optimization. The • Wartsila (Finland),growth in the global shipbuilding industry, particularly in the Asia Pacific • Mitsubishi (Japan), etcregion and Europe is expected to drive the marine segment in the powermanagement system market.Asia Pacific: Expected to be the leading market for powermanagement systemsPower System Simulator MarketThe global power system simulator market is estimated boost the demand for load flow modules.to reach USD 836.1 Million in 2017 and is projected The power segment is expected to dominate the power system stimulatorto reach USD 1,180.6 Million by 2022, growing at a market, by end-user, in 2017.CAGR of 7.14%. The market is set to grow due to the The power segment comprises the power generation and transmissionbooming power sector and augmented power generation and distribution sub-segments. Power system stimulators find applicationcapacities and the increased adoption of IoT and cloud in load planning, power quality, grids, arc flashes, and transmission andplatforms. distribution. Increased investments in renewable energy, growing power generation capacities, and high growth rates in developing economies areThe load flow segment is expected to hold the largest driving the power segment. Most countries are focusing on diversifyingshare of the power system simulator market, by module. their energy mixes and re-evolving micro grids, which is expected to boost the power segment of the power system stimulator market, by end-user.Load flow modules help in planning future load expansions of powersystems as well as optimizing existing networks. Planned expansion and North America: Expected to be the leading market foroptimization of existing networks using these modules help in reducing power system simulatorsthe overall downtime of the plant. Upcoming power projects in economiessuch India, Indonesia, Malaysia, South Africa, and Qatar are expected to The North American market is expected to lead the power system simula- tor market, by region. Increasing investments in the renewable energy and metals and mining markets and a positive outlook on the shale oil market are the key factors driving the power system simulator market in North America. Key Players: • ABB (Switzerland), • Schneider Electric (France), • Siemens (Germany), • GE (US), • ETAP (US), • MathWorks (US), • OPAL-RT (Canada), • RTDS Technologies (Canada), • Neplan (Switzerland), etc.Spotlight on Indian Electronics 2018-19 | 181

High Priority MarketsTension Control Market The global tension which include food & beverage, pharmaceutical & homecare, lamination, control market is and labeling. Tension control finds maximum use in food & beverage, estimated to reach pharmaceutical, and printing & packaging applications. Tension control USD 891.4 Million in is a necessary component in machineries where flexible printing & 2017 and is projected packaging is done. Low tensile strength of the flexible material often to reach USD 1,118.8 leads to fluctuations in tension in the moving web and can drastically Million by 2022, affect the quality of the process, leading to low-quality printing, irregular growing at a CAGR packaging, uneven lamination, perforation in packaging, and other issues. of 4.65%, during the The growing transition toward flexible packaging in these sectors due to forecast period. The increased competition among retailers, which, in turn, has increased the market is set to grow demand for high-quality labeling, printing, and packaging, thereby driving due to the increasing the tension control market.demand for automated tension control and the rising transition towardflexible printing & packaging from rigid packaging. Asia Pacific: Expected to be the leading market for tension controls during the forecast period.The load cell/force transducer segment is expected to hold the largestshare of the tension control market, by component The market in Asia Pacific is expected to lead the tension control market, by region. The increase in demand for packaging machinery importsThe load cell/force transducer is a vital component that helps in and manufacturing, due to rising transition toward flexible packaging inmeasuring tensions directly in the tension zones of a moving web system the food & beverage sector is the major driving factor for tension controland sends a signal to the indicator or controller for taking corrective market in Asia Pacific. The growth in pharmaceutical manufacturingmeasures to control it. The segment is expected to be driven by the rising further offers opportunities for the tension control market in the region.adoption of automation in aluminum, paper processing, and printing &packaging industries, particularly in Asia Pacific and Europe. Emerging Key Players:economies such as China and India are witnessing substantial growth inpackaging machinery manufacturing, particularly for the food & beverage • Maxcess (US)and pharmaceutical sectors. The increasing demand for packagingmachinery in Europe, particularly in Germany and Italy, for exporting • Montalvo (US)to North America and Asia Pacific is further driving the market for thissegment. • Erhardt+Leimer (Germany)The flexible printing & packaging segment is expected to dominate the • FMS (Switzerland)tension control market, by application, in 2017. • Double E (US)The flexible printing & packaging segment comprises various end-uses, • Nireco (Japan) • Re (Italy), etc.The MEMS Market MEMS market market will grow will experience at 9% over 2018 a 17.5% - 2023. With RF growth in value MEMS devices, between 2018 CAGR reaches and 2023, to 17.5% during the reach US$ 31 same period. Driven billion at the end by the complexities of the period. associated with The consumer the move to 5G market segment and the higher is showing the number of bands biggest share, it brings, there is an increasing demand for RF filters inwith more than 50%. The good news is that almost all 4G/5G, making RF MEMS (mainly BAW filters) the largest- MEMS devices growing MEMS will contribute segment. to this growth. However, the Amongst the numerous RF industry is existing MEMS devices, still playing a inkjet heads will grow, key role in the with the consumer MEMS industry market representing development. more than 70% of print Excluding RF, head market demand. the MEMS This market recorded its first signs of recoverySpotlight on Indian Electronics 2018-19 | 182

High Priority Markets in the first half and reached the US$1 billion milestone in 2016. Currently, almost 4.5 of 2017, a trend billion units are shipped annually. The main application is mobile phones, confirmed in the which comprise 85% of shipment volumes, in a consumer market that second half of the makes up 98% of the total shipment volume. Tablets and PCs/laptops year. This recovery take second and third place, with 5% and 3.2% of total shipment volumes, was noticed both respectively. in disposable and fixed print Step by step, the uncooled IR imager market keeps growing. This is due heads. Most to a continuous price decrease over the last few years stemming from consumer players new technologies such as WLP and silicon lenses, as well as increasing show discernable acceptance from customers. As prices continue falling, the market for growth: for uncooled IR imaging technology will continue finding new applications in example, HP the coming years.has recorded a 2% growth in consumer printer revenue since 2016, andCanon has confirmed a progression in sales for inkjet printers, with strong The status of the 2017 top MEMS manufacturers:demand in Asia. • In 2017, the biggest surprise was Broadcom becoming the #1 MEMSNumerous pressure sensor applications also contribute to market player. As growth continues for RF, driven by an increasing number ofexpansion. Indeed, it is interesting to see that, although it is one of filters/phones and by the front-end module’s increasing value, it is likelythe oldest MEMS technologies, pressure sensor keeps growing. In that RF players will still dominate the top 2018 rankings.automotive, pressure sensors have the highest number of applications,with many advantages such resistance to toxic exhaust gas and harsh • In parallel, most MEMS players showed positive growth in 2016 - 2017.environments, higher accuracy, and the development of intelligent Established players, Robert Bosch, STMicroelectronics and HP weretires that deliver more information on tire status (especially for future “shaken” by Broadcom’s growth but still performed well. For example,autonomous cars). For consumer, mobiles and smartphones still account the German leader, Robert Bosch enjoyed growth of approximatelyfor 90% of pressure sensor sales, and cost reduction is the priority vs. size US$100 million. Inkjet heads players also had a good overall performancereduction because size is already very small. Although there are no big compared to previous years. In addition, the company, SiTime“killer” applications expected in the future, new applications are emerging: displayed the most impressive growth, exceeding 100%. Other MEMSsmart homes, electronic cigarette, drones, and wearables, to name players posting significant growth are: FormFactor, benefiting from theseveral. semiconductor business’s excellent health; and ULIS, with uncooled IR imaging still growing annually into multiple applications includingMEMS microphones: Such MEMS components have been in the spotlight consumer – thermography, firefighting, night vision, smartphones, drones,for a long time and have expressed one of the highest CAGRs of any and military.MEMS technology over the last five years. In the range of US$105 millionin 2008, the MEMS microphone market was worth US$402 million in 2012 In 2016, the top 30 MEMS players totaled more than US$9,238 million. In 2017, that number increased to US$9,881 million. Yole DéveloppementGlobal IoT Sensors MarketGlobal IoT sensors market was valued at around physical quality of objects and enumerate it into a value which is furtherUSD 7.51 billion in 2016 and is expected to reach read by another device or user. IoT devices are equipped with differentapproximately USD 27.38 billion in 2022, growing at a sensors which are capable of registering changes in pressure, motion,CAGR of slightly above 24% between 2017 and 2022. temperature, light, and sound. In the physical world, a number of objects can now communicate with each other through embedded IoT sensorsIoT is an emerging array of software-controlled sensors and other devices and actuators.that allow machines to communicate with each other. By IoT sensors,efficiency machine performance can be tracked and allows for predictive Increasing usage of IoT sensor in the automotive sector and boomingmaintenance that avoids costly breakdowns or inefficient routine- industrial IoT sensor are major factors which drive the growth of IoTmaintenance shut-downs. Hence IoT sensors play important role in IoT sensor market. Further, rising demand for smart TV in consumertechnology. electronics sector is escalating the demand of IoT sensor market. Increasing adoption of smartphones and related product are the impellingIoT is a network that is embedded with sensors, network connectivity, demand of IoT sensor market. Furthermore, stringent governmentelectronics and software enabling physical objects to collect and regulation and policies for developing smart cities is likely to offer newexchange the data. Sensors in IoT play a vital role in measuring the opportunities for IoT sensor market. However, privacy and security issues are restraining the market growth of IoT sensors. Types of the IoT sensor include temperature, accelerometer pressure sensor, gyroscope, magnetometer, light sensor and other. Pressure sensors and temperature sensors are expected to hold the major share of IoT sensor market. Temperature sensors are used for healthcare, automotive, and consumer electronics industries and have proved to be useful in catering growing demand for advanced automation in these sectors. The pressure sensor is also used in a variety of application including environmental monitoring devices, air sampling healthcare, remote sensing, airspeed, industrial automation and leak detection. Healthcare, retail, building automation, consumer electronics and industrial are different application areas of IoT sensor market. Among this application, automotive and consumer electronics sectors dominated the IoT sensor market in 2016. The IoT sensors market has the enormous opportunity and scopes in theSpotlight on Indian Electronics 2018-19 | 183

High Priority Marketsemerging markets of Asia-Pacific and Rest of the world. The emergence Key Players: Infineon Technologies, InvenSense Inc., Libelium, ARMof new players in the developing markets such as China, Japan, India, Holdings Plc., Robert Bosch GmbH, Digi International Inc., HoneywellRussia, Australia, and Brazil are trying to adopt advanced technologies. International Inc., STMicroelectronics N.V. and Ericsson among others.This has led the increase in competitiveness in the IoT sensors market.Utility Asset Management Market The utility are funded by government and have a huge customer base. Increasing asset investments in distributed energy generation sources have increased management the grid complexity, as these sources are to be connected to grid for market is reliable supply of power. The T&D lines are expected to be maintained in expected to a good condition to achieve reliable power and energy efficiency. Thus, grow from an management of utility assets is needed to maintain the good health of estimated USD assets and reduce T&D losses. These factors are likely to drive the utilities 2.75 Billion in to make heavy investments in utility asset management. 2017 to USD 4.09 Billion The hardware segment is expected to be the fastest growing component by 2022, segment of the utility asset management market registering a CAGR of The component segment is divided into hardware and software sub- 8.25%, from segments. The sensors in hardware and equipment/component 2017 to 2022. management market in software, led the utility asset management market in The global 2016, and is expected to dominate the utility asset management market. market isset to witness a significant growth due to increasing The sensors in the hardware segment provide the data related to variousinvestments in grid modernization, requirement for utility assets, based on various parameters, such as, voltage, current, heat,energy efficiency, necessity to reduce transmission and temperature, and frequency. These data provided by sensors are useddistribution losses, and increasing grid complexity. by equipment /component management system to provide actionable information which is used to form a predictive maintenance scheduleThe public utility segment is expected to hold the largest depending on the health of assets. Countries, such as the US and Germanyshare of the utility asset management market, by utility are expected to drive the market demand, mostly because of the ongoingtype investments in grid modernization. The market in North America is expected to dominate the global utility asset management market.Most of the utilities across the globe are either country owned or stateowned. The public utility segment within the utility type segment led the Key Players:utility asset management market in 2016 and is expected to dominate themarket. • Siemens AG (Germany),The growth of this segment is primarily driven by increasing investments • ABB Ltd. (Switzerland),in grid modernization and requirement for energy efficiency. Public utilities • General Electric Company (US), • Emerson Electric (US).Volt/VAr Management Market The global volt/ fastest rate from 2017 to 2022. This segment is expected to grow at a steady VAr management pace due to a need to reduce system-wide losses and minimize distribution market is system and customer voltage variations. The increasing number of substation estimated to be automation projects will drive the market during the forecast period. USD 398.9 Million in 2017 and is North America is expected to be the leading market for volt/VAr projected to reach management USD 527.1 Million by 2022, growing The North American market is expected to lead the volt/VAr managementat a CAGR of 5.73%, during the forecast period. The market is set to grow market, by region. Increasing investments in renewable energy and volt/VArdue to a focus on the reduction of electricity losses in power distribution, a optimization projects in the utilities sector are the key factors driving the volt/need to optimize power factor, and rising electricity demand. VAr management market in North America.The distribution segment is expected to hold the largest share of the volt/ Key Players:VAr management market, by application • ABB (Switzerland),The distribution segment is driven by investments in smart grids anda need to reduce power outages and faults in distribution feeders. • Schneider Electric (France),Upcoming up gradation and new T&D projects in economies such as theUS, China, India, the UK, France, Spain, Norway, Denmark, Belgium, and • Siemens (Germany),Ireland are expected to boost the demand for volt/VAr management. • GE (US),The hardware segment is expected to dominate the volt/VAr managementmarket, by component • Eaton (Ireland),Based on component, the hardware segment is expected to grow at the • Open System International (US), • Utilidata (US), • Varentec (US), • Landis+Gyr (Switzerland), etc. Spotlight on Indian Electronics 2018-19 | 184

High Priority MarketsLight Management SystemMarket such as corporate offices, healthcare facilities, retail complexes, hotels,The light management system market is expected to restaurants, and educational institutes. Reducing energy consumptiongrow from an estimated USD 11.66 Billion in 2018 to has become a major objective for organizations, governments,USD 21.51 Billion by 2023, at a CAGR of 13.03%, during utilities, and other stakeholders. Controls and connectivity enable thethe forecast period. The increasing adoption of energy- personalization of lighting as well as allow users to reduce energy use,efficient lighting automation systems is the major driver optimize spaces, and lower maintenance costs.of the lighting management system market. The growingdemand for building automation in North America and Increasing preference for dimming control managementEurope make them potential growth markets for theproviders of lighting management systems. Dimming control management is used to reduce the energy consumption of light sources and, consequently, the intensity and output of those lightThe commercial segment is expected to account for the sources. Compared to on-off switching controls, they can improve energylargest share of the light management system market. savings, better align lighting with human needs, and help extend the working life of light sources.Light management systems are used widely in commercial set-ups North America: Expected to be the leading market for light management systems. The North American market is expected to lead the light management system market in 2018. The growing demand for building automation in Asia Pacific and North America make them potential growth markets for the providers of lighting management systems. Moreover, increasing smart city developments in different parts of the world will provide new opportunities. Key Players: • GE (US), • Philips Lighting (Netherlands), • Eaton (Ireland), • Zumtobel (Austria), • OSRAM (Germany), etc.Medium Voltage Cables andAccessories MarketThe medium voltage cables and accessories market is infrastructure, and renewables. The industrial segment is expected toexpected to grow from an estimated USD 41.45 Billion in account for half of the medium voltage cables and accessories market2017 to USD 56.18 Billion by 2022, at a CAGR of 6.27%, in 2017. The industrial segment includes utilities, oil & gas, mining andfrom 2017 to 2022. metals, chemicals and petrochemicals, cement and manufacturing, and other industries. Investments in power transmission and distributionThe underground medium voltage cables and accessories segment of would drive the industrial segment of the medium voltage cables andthe installation market is expected to hold the largest share. accessories market.On the basis of installation, the medium voltage cables Asia Pacific: The leading market for mediumand accessories market has been segmented into voltage cables and accessoriesunderground, overhead, and renewables. Theunderground sector accounted for the largest market The market in Asia Pacific led the global medium voltageshare. Several benefits of using underground cables cables and accessories market in 2016. Rapidare lower transmission loss and maintenance development and rising investments in thecosts, they release no electric fields, and can region would drive the demand for mediumeasily absorb power loads; these factors voltage cables and accessories. This wouldare expected to drive the medium voltage lead to increased power transmission and distribution as well as the replacement ofcables and accessories market. Thus, the mature power transmission infrastructure.underground segment of the medium voltage Investments in smart grid technology incables and accessories market is expected togrow at the highest CAGR. countries such as China, India, Japan, Australia, and those in the rest of Asia Pacific would create opportunities for the medium voltage cables andThe industrial segment is expected to lead the medium accessories market.voltage cables and accessories market Key Players:On the basis of end-user, the medium voltage cables and accessoriesmarket has been categorized into three segments, namely, industrial, • Prysmian S.p.A. (Italy), Spotlight on Indian Electronics 2018-19 | 185

High Priority Markets• Nexans S.A. (France), • NKT Group A/S (Denmark),• General Cable Corporation (US), • LS Cable & System Ltd. (South Korea).Micro Turbines MarketThe micro turbines market is expected to grow from an which helps in reducing T&D losses. They also have lower total emissionsestimated USD 159.7 Million in 2017 to USD 251.0 Million since the exhaust is utilized for other operational purposes. Thus, CHPby 2022, at a CAGR of 9.46%, during the forecast period. application segment leads the micro turbines market.The market is set to grow due to increasing effortsto reduce global greenhouse gas emissions, growing The 50–250 kW power rating segment is expected to beadoption of combined heat and power (CHP), and the largest segment of the micro turbines market in 2017increasing demand for clean energy worldwide. The 50–250 kW micro turbines have been widely accepted in the pastThe combined heat and power segment is expected to few years. Capstone Turbine, Ansaldo, and FlexEnergy are the majorhold the largest share of the micro turbines market, by providers of these micro turbines in the global market. The market for theapplication 50–250 kW rated micro turbines will be driven by the many upcoming CHP-based power plants in Asia Pacific and North America. TheMicro turbines find application mainly in CHP plants. The global market, replacement of old coal-fired power generation capacity in the US within terms of value, for micro turbines used in CHP-based applications new large capacity gas-fired power plants will also boost the market.was the highest and it accounted for a major share of the total market.Cogeneration or CHP is highly efficient and can achieve primary energy North America: Expected to be the leading market forsavings of nearly 40%. Moreover, they are installed close to the end-user, micro turbines The market in North America is expected to continue leading the market. Urbanization, industrialization, and fast economic growth have led to an increase in the demand for electric power. To meet this growing demand aging infrastructure is being replaced with new power plants, especially gas-fired ones, which use micro turbines. Key Players: • Capstone Turbine (US), • FlexEnergy (US), • Ansaldo Energia (Italy), • MTT (Netherlands), • Toyota Turbine and Systems (Japan), etc.Microscopy MarketThe global microscopy market is projected to reach USD Moving images can be recorded or single images captured in the7.39 Billion by 2022 from USD 5.60 Billion in 2017, at a computer’s memory. An advantage of digital microscopes is the abilityCAGR of 5.7%. to email images, as well as comfortably watch moving images for long periods. The popularity of the digital microscope has increased at schoolsThe Digital Microscope: The digital microscope, invented in Japan and among hobbyists.in 1986, uses the power of the computer to view objects not visible to thenaked eye. Among the different types of microscopes, this kind can be The market growth can be attributed to the favorable government andfound with or without eyepieces to peer into. It connects to a computer corporate funding for R&D in microscopy, technological advancements inmonitor via a USB cable, much like connecting a printer or mouse. The microscopes, rising focus on nanotechnology and regenerative medicine,computer software allows the monitor to display the magnified specimen. and favorable regulatory scenario. Factors such as growth opportunities in emerging markets, increasing application areas of microscopy, and integration of microscopy with spectroscopy offer lucrative opportunities for players in the global market for microscopy. In terms of growth rate, Asia Pacific region is expected to register the highest growth rate from 2017 to 2022. Rising R&D funding for the development of microscopes, increasing nanotechnology research, low material costs, and growing expertise and academic excellence in emerging APAC countries such as China and India are the major factors driving the growth of this market. Factors such as high cost of advanced microscopes and implementation of excise tax and heavy customs duty are restraining the growth of the market and dearth of skilled professionals with expertise in operating advanced microscopes is expected to be the challenge for the market. The key players in the microscopy market include Carl Zeiss (Germany), Danaher (US), Thermo Fisher Scientific (US), Nikon (Japan), Bruker (US), Olympus (Japan), Oxford Instruments (UK), JEOL (Japan), and Hitachi High-Technologies (Japan). Light Microscopes Market Asia Pacific is expected to register a higher growth rate during the forecast period, owing to huge investment opportunities in this region. The growth Spotlight on Indian Electronics 2018-19 | 186

of the light microscopes market in the Asia Pacific region will revolve High Priority Marketsaround China, India, Australia, and countries in the Middle East. Japanese Electronics Co., Ltd., Hitachi High-Technologies Corporation,The key players of light microscopes market are Bruker, Olympus, Leica, Micro engineering in Denmark, Thorlabs, PTI, Shanghai OpticalZeiss, Fisher Scientific, Tescan, Aven Inc., Celestron, Nikon, Motic, Instrument, Sunny, COIC, Novel Optics and PicoQuant.Power Plant Control System Market The power driver for the growth of the turbine and auxiliaries control segment. plant control system The SCADA solution is expected to be the fastest growing market is segment in the power plant control system market expected to grow from With regard to the solution segment, SCADA solutions are expected to an estimated constitute the fastest growing market from 2017 to 2022. The market is USD 4.70 primarily driven by increasing investments in large-scale renewable power Billion in projects where SCADA is implemented excessively. A SCADA system 2017 to USD collects real-time data from remote locations to control the equipment or 6.22 Billion device. SCADA uses computers, communication systems, and graphical by 2022, user interface for monitoring the process. SCADA systems are used to registering ease the automation process in remote areas where manual controlling a CAGR of is not possible in power plants. The components of SCADA are generally 5.78%. grouped into control devices and remote site devices that are used for the plant control network. They provide various facilities such as controlling This growth is and monitoring, as well as triggering alarms in the plant during hazardous primarily due to events. Such a system adds tangible cost benefits by eliminating the increasing redundant and obsolete processes such as scanning or searching andemphasis on alternative energy production, increase in the buoyant power streamlining the processes.sector and augmented power generation capacities worldwide, andgovernment initiatives toward the adoption of industrial automation. Asia Pacific: The leading market for power plant control systemsThe turbine and auxiliaries control segment is expectedto hold the largest share of the power plant control Asia Pacific is expected to account for the largest market share in thesystem market, by application global power plant control system market in 2017. The increasing consumption of energy followed by the increase in investments inThe turbine and auxiliaries segment led the power plant control system renewable energy is expected to boost the power generation plants,market in 2016 and is projected to dominate the market. The turbine thereby, enhancing the power plant control system market in the region.and auxiliaries control segment comprises control systems for turbine According to the Bloomberg New Energy Finance, China was observedgoverning systems, vacuum systems, condensate systems, feed water to be the highest investor in renewable energy and the associated low-systems, cooling water systems, and lubrication oil systems. Control emissions-energy sectors by investing USD 103 billion in 2015, recordingsystems for turbines and auxiliaries are specifically used in coal-based a 17% growth year on year (YoY).thermal power plants, nuclear power plants, oil-fired steam turbine powerplants, gas-fired steam turbine power plants, wind power plants, and Key Players:concentrated solar power plants. In a power plant, the cost component forthe turbine and auxiliaries control segment holds the largest share of the • ABB (Switzerland),entire power plant control system. The increase in the capacity addition ofthe wind power plant across the globe along with large investments in the • Siemens (Germany),capacity addition of thermal power plants in Asia Pacific acts as a major • Schneider Electric (France), • Emerson (US), • GE (US). etcSmart Transformers MarketSmart Transformers Market is expected to grow from an 2022. The global market is set to witness a significantestimated USD 1.47 Billion in 2017 to USD 2.43 Billion growth due to increasing emphasis on alternative energyby 2022, registering a CAGR of 10.54%, from 2017 to production across the globe, digitalization of power utilities, and huge investments in smart grids and energy systems. The smart grid segment is expected to hold the largest share of the smart transformers market, by application The smart grid segment led the smart transformers market in 2016, and is projected to dominate the market. One of the biggest uses of a smart transformer in smart grids is its role in integrating power from distributed generation into the main grid. Smart grids have two-way communication for real-time monitoring and controlling of network characteristics. For this, the basic step is the implementation of smart meters for end-user interactions, followed by employing smart transformers in the network to further strengthen communications and avoid power outages. AlthoughSpotlight on Indian Electronics 2018-19 | 187

High Priority Marketssmart grids prevent faults and power outages, they are also equipped Japan, and India are investing in grid expansion projects to increasewith self-realization characteristic that allows the network to restore to the distribution grid reliability. China accounted for the largest sharenormal, once the fault is cleared. This is driving the market for smart of the smart transformers market in Asia Pacific in 2016 and has thetransformers in the smart grid segment, which is expected to create new highest installed generation and distribution capacity, resulting in anrevenue pockets for the smart transformers market. increased demand for transformers. The country, which is an export- oriented economy, has witnessed an exponential growth in the demandDistribution transformers to be the fastest growing for electricity in the past couple of decades, fueled by industrializationsegment in the smart transformers market and infrastructural developments. Meanwhile, the Indian government is also taking initiatives to increase the power generation capacity usingWith regard to the type segment, distribution transformers are expected renewable energy sources. For instance, the country is the third-largestto constitute the fastest growing market from 2017 to 2022. Smart electricity producer in the world and is likely to generate approximately 30distribution networks require smart transformers to communicate GW of power from renewable energy sources in 2017. This would requirewith consumers and also for continuous load monitoring. Distribution grid connected as well as local distribution networks. These factors aretransformers are less efficient than power transformers as they are expected to drive the growth of the smart transformers market in Asiasubject to load fluctuations and the chances of failure are higher. Power Pacific.distribution sometimes results in increased load above the peak limit ofthe equipment. Hence, the implementation of a distribution network is Key Players:essential for proper load management, resulting in better power qualityand less power outages. • ABB (Switzerland), Siemens (Germany),Asia Pacific: The leading market for smart transformers • Schneider Electric (France),Asia Pacific is expected to account for the largest market share in the • Eaton (Ireland),global smart transformers market by 2022. Countries, such as China, • General Electric (US).The Memory Market• Memory is now the primary market segment for semiconductor Understanding memory supply/demand dynamics and its relationshipproducts. with pricing is vital to understanding the broader semiconductor market• Every application is pushing NAND demand to new height. and all associated supply chains.• Megatrends are pushing more DRAM into products, leading to a record2018. The DRAM market is constantly evolving and changing. Yole Group is• NAND/DRAM: what can we expect in the upcoming quarters? announcing a 22% CAGR for bit demand over the next five years.The semiconductor industry posted record results in 2017, with revenueexceeding US$400 billion. Overall demand for semiconductor devices New Chinese suppliers threaten the current market balance, and emerging memory technologies are poised to cannibalize huge chunks ofwas robust throughout the year, driven by the growing adoption of DRAM demand while the demand drivers of the past, including PCs andelectronics components across all applications, with particular strength in smartphones lose steam and no longer push industry demand. In parallel,the mobile and data center markets. Semiconductor growth in 2017 wasled by the memory segment, with impressive revenue reaching US$126 NAND market is expectedbillion. It represents an increase of over 60% year-over-year. The memory to set another revenuemarket will reach US$177 billion in 2018, with 40% growth. record in 2018, before aBoth DRAM and NAND markets were in a state of undersupply flattish 2019. Therefore itthroughout the year, leading to rising prices and record revenue and continues to expand, withprofitability for the memory suppliers. Demand was very strong, led by several consecutive quartersmobile and data center / SSD and augmented by emerging growth of record revenue anddrivers including AI, IoT and automotive. Supply growth across both profitability for suppliers.DRAM and NAND was constrained, due to a combination of limited wafergrowth and technological challenges. NAND’s competitiveThe current macro trends of AI and machine learning, mobility, and landscape remainsconnectivity, are favorable to both the DRAM and NAND markets, and will incredibly dynamic.likely result in Memory continuing to increase its share of the overall the Samsung is preppingsemiconductor market. its first fab at its massive Pyeongtaek site; Intel is emerging as a stand-alone supplier with capacity in China; and the sale of Toshiba’s memory business to a consortium led by Bain Capital is finally happening. Meanwhile, a new entrant looms on the horizon: China’s Yangtze Memory Technologies Co. (YMTC), which threatens to disrupt the status-quo as well as multiple other Chinese projects. NAND demand remains robust, with strong growth for enterprise SSDs in data centers, increasing adoption of SSDs in laptop PCs, and continued content growth in smartphones and other mobile devices. These segments will continue driving the bulk of NAND bit consumption, though several emerging trends are poised to augment future growth, including AI and VR adoption, automotive, and IoT. Spotlight on Indian Electronics 2018-19 | 188

High Priority MarketsVariable Frequency Drives MarketThe variable frequency drive market is expected to grow • Siemens AG (Germany),from an estimated USD 18.61 Billion in 2016 to USD • Schneider Electric (France),24.8 Billion by 2021, registering a CAGR of5.94% from 2016 to 2021. • Danfoss (Denmark), • Rockwell Automation, Inc. (U.S.),Low voltage segment the largest variable frequency • WEG (Brazil),drive market by voltage • Yaskawa Electric Corporation (Japan), • Eaton Corporation Plc. (Ireland),Among the two major voltage segments of variable • General Electric (U.S.),frequency drives: low voltage and medium voltage, • Emerson Electric Co. (U.S.),the former held the largest market share in 2015. Low • Hitachi, Ltd. (Japan),voltage variable frequency drives have become popular • Crompton Greaves (India),mainly because of their ease of operation and size • Mitsubishi Electric Corporation (Japan),which is 25-40% smaller than medium voltage drives.Moreover, medium voltage drives are complex and difficult • Fuji Electric Co., Ltd. (Japan)to handle or replace in case of a failure during an operation.Key Players:• ABB Ltd. (Switzerland),Wire and Cable Management MarketThe wire and cable management market is expected to Conduits & trunking are used to protect cables from damage and can be used in almost any location including homes, commercial spaces,grow from an estimated USD 16.91 Billion in 2018 to USD and industrial sectors. Rising urban population and need for advanced infrastructure in regions such as Asia Pacific and the Middle East are25.26 Billion by 2023, at a CAGR of 8.36%, during thrusting the deployment of conduits & trunking system.the forecast period. Asia Pacific: Largest wire and cable management market The market Asia Pacific is the largest wire and cable management market, by is set region, during the forecast period. Rising urbanization and proliferation of electrification, demand from the construction and mining sectors, to growing awareness of energy savings, and supportive government plans are expected to drive the market for wire and cable management in thiswitness region. China, India, and Japan are the leading countries among others which would contribute to the growth of the wire and cable managementgrowth due to the rising market in Asia Pacific.demand from data center and IT facilities and the Key Players:growing construction sector. • Legrand (France),Power cable segment is expected to be the largest wire • Eaton (Ireland),and cable management market, by cable type, in 2018. • Hellermann Tyton (England),The power cable segment is expected to be the largest segment of • Atkore (US),the wire and cable management market, by cable type, in 2018. Powercables are widely used in the power distribution sector to distribute power, • Panduit (US),and can be installed overhead as well as underground in the industrial,commercial, and residential sectors. High demand for electrification of • Obo Bettermann (Germany), etc.homes, increased investment in power distribution, and growth in thehousehold sector in developing countries are the key drivers for thegrowth of the power cable wire and cable management market.Conduits & trunking segment is expected to be thesecond largest wire and cable management market, byproductInstrument Transformers MarketThe instrument transformers market is expected to The power utilities segment led the instrument transformers market ingrow from an estimated USD 7.32 Billion in 2017 to USD 2016, and is projected to dominate the market. The total investment9.06 Billion by 2022, registering a CAGR of 4.35%. This in the transmission and distribution infrastructure over 2014 to 2035 isgrowth is primarily due to the increasing emphasis on expected to be USD 6.8 trillion, according to the International Energyalternative energy production, refurbishment of aging Agency. Approximately, 56% of the total energy investment accounts forinfrastructure, and huge investments in smart grids and transmission and distribution. Refurbishment and replacement of existingenergy systems across the world. assets contribute 40% and the grid integration of renewables accounts for 4%. Instrument transformers are a major part of the transmission andThe power utilities segment is expected to hold the distribution infrastructure, used for measurement as well as protection oflargest share of the instrument transformers market, by the system. Approximately 10% of the total substation cost is dedicatedend-user to procurement and installation of instrument transformers. With the Spotlight on Indian Electronics 2018-19 | 189

High Priority Marketsincreasing investments in the power infrastructure, the market for well. The information at high frequencies (in MHz) are conveyed throughinstrument transformers tends to grow. transmission lines from one grid to another and is known as Power Line Carrier Communication (PLCC). Capacitive voltage transformers, whenCapacitive potential transformers to be the fastest used as high pass filters, helps in PLCC.growing segment in the instrument transformers market Asia Pacific: The leading market for instrumentWith regard to the type segment, capacitive potential transformers are transformersexpected to constitute the fastest growing market from 2017 to 2022.Capacitive potential transformers are used to measure voltages above Asia Pacific is expected to account for the largest market share of 36%66 kV. In these types of transformers, capacitors are used as voltage in the global instrument transformers market in 2017. Countries suchdividers. These capacitors are connected in series where the voltage drop as China, Japan, and India are investing in grid expansion projects totakes place. Unlike inductive voltage transformers, capacitive voltage increase their distribution grid reliability. China accounted for the largesttransformers usually have a ferro resonance damping circuit built into share of the instrument transformers market in Asia Pacific in 2016. Itthe instrument transformers itself. Apart from voltage measurement, has the highest installed power generation and distribution capacities,these capacitive voltage transformers are also used as high pass filters. resulting in an increased demand for transformers. The country, whichThese days transmission lines are used for communication purposes as is an export-oriented economy, has witnessed an exponential growth in the demand for electricity in the past couple of decades, fueled by industrialization and infrastructural developments. Meanwhile, the next strongest economy, India, is also adding up its renewable energy capacity annually. For instance, the country is the third-largest electricity producer in the world and is likely to generate approximately 30 GW of power from renewable energy sources in 2017. This would require grid connected as well as local distribution networks. These factors are expected to drive the growth of the instrument transformers market in Asia Pacific. Key Players: • ABB (Switzerland), • Siemens (Germany), • Schneider Electric (France), • GE (US).Electrical Bushings MarketThe electrical bushings market is expected to grow from transformer segment.an estimated USD 2.45 Billion in 2018 to USD 2.96 Billion by2023, at a CAGR of 3.86%, from 2018 to 2023. This growth The resin impregnated paper segment of the electricalis primarily due to the rising investments in electrical bushings market, by type, is expected to grow at the highestinfrastructure and growing demand for electrical equipment CAGRfrom end-users such as railways and the renewable sector. The resin impregnated paper (RIP) bushings segment is projected to grow atThe utilities segment is expected to hold the largest share of the highest CAGR from 2018 to 2023. The key advantages of RIP bushingsthe electrical bushings market, by end-user include reduced risk for oil leakage, reduced chances of fireThe utilities segment led the electrical bushings market explosion, the capability to withstand seismic activity, and noin 2017. Electrical equipment such as transformers, requirement for oil expansion chambers. Moreover, RIPswitchgears, and circuit breakers are an important part bushings are lightweight and compact in size resultingof the T&D infrastructure and bushings are used to in easy transportation and easy handling duringconnect this equipment to HVDC lines. Asia Pacific installation.requires huge investments in the infrastructure sectorincluding energy, transport, telecommunications, Asia Pacific: The leading market forand water. According to the Asian Development electrical bushings.Bank, an investment of USD 8.22 trillion is requiredfor infrastructure development in the region from The market in Asia Pacific led the global electrical2010 to 2020. With increasing investments in power bushings market in 2017. It is the most populatedinfrastructure, the market for bushings is likely to region in the world and consequently witnessesgrow, leading to the utilities segment being the largest a high demand for electricity. Increasing gridand fastest-growing end-user segment of the electrical investments especially in developing economiesbushings market. such as China and India and plans for electrification in countries such as Vietnam, Indonesia, and theThe transformer segment is expected to hold the largest Philippines are expected to drive the electrical bushingsshare of the electrical bushings market, by application market in Asia Pacific. China accounted for the largest share of the electrical bushings market in Asia Pacific in 2017.The transformer segment led the electrical bushings market in 2017 and isprojected to have the largest market share. In transformers, bushings offer Key Players:various advantages such as fire hazard reduction and eliminating the needfor oil supervision. Moreover, to withstand any transformer voltage, bushings • ABB (Switzerland),are the only electrical equipment used for providing external input andoutput connections. All these factors have resulted in the largest share of the • Siemens (Germany), • GE (US), • Eaton (Ireland), • Nexans (France), etc. Spotlight on Indian Electronics 2018-19 | 190

High Priority Market | Power SectorBioliquid Heatand PowerGenerationMarketThe bioliquid heat and power generation market is power generation market.expected to grow from an estimated value of USD Key Players in Bioliquid Heat and Power Generation Market:1.67 Billion in 2017 to USD 2.29 Billion by 2022, at a • REG (US),CAGR of 6.54%, from 2017 to 2022. • Neste (Finland), • Kraton (US),Heat production: The larger segment, by application • BTG (Netherlands), • Olleco (UK).The heat production segment is expected to hold the majority share ofthe bioliquid heat and power generation market. In Europe, the majorityof the heat supplied to district heating systems was generated frombioliquid waste in 2016. The European market players, such as Olleco,BTG, Neste, REG, and MBP Group, are involved in the manufacturing ofbioliquids for heat production. These factors have resulted in the highermarket share of the heat production segment in the bioliquid heat andCircuit Breaker MarketThe circuit breaker market is expected to grow from an and Malaysia haveestimated USD 6.85 Billion in 2017 to USD 8.68 Billion by similar plans. Growing2022, at a CAGR of 4.85%, from 2017 to 2022. investments in smart grid technologies suchThe global market is set to witness significant growth due increasing as distribution gridconstruction and developmental activities, growing access to electricity, automation, smartand the increasing number of renewable power generation projects. meters, and demand response systems inThe transmission and distribution segment is expected Japan, South Korea,to hold the largest share of the circuit breaker market, and Australia, amongby end-user other countries, would create opportunitiesThe transmission and distribution end-user segment led the circuit for the circuit breakerbreaker market in 2016 and is projected to dominate the market. The market in Asia Pacific.renewable segment is expected to grow at the fastest rate. The major playersThe growth of the transmission and distribution segment is primarily of the circuit breaker market are follows:driven by increasing investments in sub-station automation,modernization of electric grids, and smart utilities which include smart • ABB (Switzerland)grids and smart meters. This would enhance protection by decreasingenergy losses caused by the poor operational efficiency of traditional • Siemens (Germany)equipment. This would ultimately create new revenue pockets for thecircuit breaker market. • Eaton (Ireland)The outdoor circuit breaker segment is expected to hold • Hitachi (Japan)the largest share of the circuit breaker market, by type • Toshiba (Japan)The outdoor circuit breaker segment led the circuit breaker market, bytype, in 2016 and is projected to dominate the market. The need for high • Schneider Electric (France)reliability and safe operation of sub-station equipment is expected todrive the outdoor circuit breaker market. Outdoor circuit breakers can • Mitsubishi (Japan)operate in the toughest climates and function reliably in every kind ofenvironment.Asia Pacific: the leading market for circuit breakersThe market in Asia Pacific led the global circuit breaker market in 2016.Increasing grid investments especially in developing economies such asChina and India and plans for electrification in remote areas in countriessuch as Vietnam, Indonesia, and the Philippines are expected to drivethe circuit breaker market in Asia Pacific. Indonesia aims to achieve a90% electrification rate by 2025 and countries such as the PhilippinesSpotlight on Indian Electronics 2018-19 | 191

High Priority Market | Power SectorCurrent Transducer MarketThe current transducer market is expected to grow Asia Pacific: The leadingfrom an estimated USD 581.1 Million in 2018 to USD market for current683.7 Million by 2023, registering a CAGR of 3.31%. transducersThis growth is primarily due to the increasing emphasis on renewable Asia Pacific is expected to accountresources, control & monitoring system, industrial automation, electric for the largest market share in thevehicle, and increasing use of energy storage machines. global current transducer market in 2017. In the Asia Clean EnergyThe motor drive segment is expected to hold the largest share of the Summit in Singapore, in 2017 it was noted that Southeast Asia iscurrent transducer market, by application a suitable market for renewable energy development, as it holds a favorable climate for solar and wind energy generation. According toThe motor drive segment led the current transducer Bloomberg New Energy Finance, China is observed to be the highestmarket in 2017 and is projected to dominate the investor in renewable energy and associated low-emissions-energymarket. The motor drive segment has wide application sectors by investing USD 103 billion in 2015, recording 17% growthin different industries. The motor drive is used for providing the year-on-year (Y-o-Y). The growth of renewable energy is also drivingalternating frequency and voltage to the electric motor. The current the market for energy storage The NITI AYOG has projected a batterytransducer in the drive is used to measure the current to be applied market of USD 300 billion by 2017–2030 in India. In addition to thisto the motor. Due to such an extensive application, the motor drive China is also leading the market toward the adoption of the electricsegment is estimated to lead the application segment of the current vehicle in the country. To promote electric vehicles, the government oftransducer market. China is providing a subsidy of USD 15,000 on each electric vehicle. The investment and development in renewable, electric vehicle, energyRenewable industry is expected to be the fastest storage, and industrial automation is driving the market for currentgrowing segment of the current transducer market transducers.With regards to the end user segment, renewable is expected to Some of the key players considered in the report are:constitute the fastest growing market from 2018 to 2023. The marketis primarily driven by increasing investments in large-scale renewable • LEM (Switzerland),power projects. The government in different countries worldwideare targeting to diversify the energy generation mix and reduce the • CR Magnetic (US),emission of carbon and greenhouse gases. European countriesclimate & energy strategy of 20-20-20 is one of such example. China • NK Technologies (US),is leading the adoption of renewable installation across the globeto diversify its energy mix and reduce the carbon emission. The • Veris Industries (US),installation of renewable energy sources is expected to grow during theforecasted period attributing toward the growth of renewable energy. • Phoenix Contact (US), etc.Digital Oilfield MarketThe digital oilfield market is expected to grow from Europe is expectedan estimated USD 21.14 Billion in 2017 to USD 27.10 to be the largestBillion by 2022, at a CAGR of 5.09%. The market is set to digital oilfield market,witness growth due to increasing focus on optimization by region, during thethrough digitization majorly in mature fields. forecast period. The region has severalThe production optimization market is expected to be the largest digital mature fields in theoilfield market, by process, in 2017. North Sea which demand increased use of technological prowess to produce oil. Russia,The production optimization segment is expected to be the largest the UK, and Norway shares majority of the number of reserves in thesegment of the digital oil field market, by process, in 2017. The segment region. In the UK and Norway, the oil & gas production takes place atis expected to grow during the forecast years due to increased production offshore locations whereas Russia has more onshore fields. The highactivities among the major oil & gas suppliers worldwide for enhancing number of oil & gas fields leads to demand for digital oilfields such as welltheir respective oil outputs. The adoption and implementation of digital intervention and enhanced oil recovery (EOR) techniques.optimization techniques can enable these companies to meet theirproduction targets and enhance their respective profitability. Some of the key players considered in the report are:The onshore segment is expected to hold the largest • Schlumberger (US),share of the digital oilfield market, by application • Weatherford (Switzerland),The onshore segment is the fastest growing market during the forecastperiod and is projected to dominate the market during the forecast • Halliburton (US),period. The larger intensity of onshore applications regions such as theMiddle East and North America. These areas where digitization of the • BHGE (US),fields can maximize the oil & gas outputs, reduce non– productive timeand increased profitability through integrating the workflows. This would • National Oilwell Varco (US),ultimately create new revenue pockets for the digital oilfield market. • ABB (Switzerland),Europe: Key market for digital oilfields market during theforecast period. • Emerson (US), • Rockwell (US), • Siemens (Germany).Spotlight on Indian Electronics 2018-19 | 192

High Priority Market | Power SectorElectrical SCADA electricalMarket SCADA. TheThe electrical SCADA market is expected to grow from an increasingestimated USD 2.29 Billion in 2017 to USD 3.29 Billion by adoption of2022, at a CAGR of 7.48%. This growth can be attributed investmentsto factors such as increased investments in electrical by Transmission System Operators (TSOs) and Distribution Systemnetworks and government initiatives toward the adoption Operators (DSOs) in electrical networks and a strong presence ofof industrial automation. prominent SCADA suppliers, especially in the US and Canada, drive the market growth in the region.The hardware segment is expected to hold the largestshare of the electrical SCADA market, by architecture Some of the Leading key players considered in the report are:The hardware segment led the electrical SCADA market in 2016 and isexpected to grow at a decent pace during the forecast period. A rapid • ABB (Switzerland),growth in North America is driven by rising investments focused onautomated devices in the power sector, which is the main reason for a • Schneider (France),large market share held by the segment. • Rockwell Automation (US),The master terminal unit segment is expected to be the largest segmentof the electrical SCADA market, by component in 2017 • Yokogawa (Japan),MTU is expected to be the largest segment in the electrical SCADA • Honeywell (US),market, by component, in 2017. MTU basically operates as a mastercontroller and hence it is one of the most important components for • Siemens (Germany),remote monitoring. Countries such as India, China, and Germany areshowing a rapid growth in the MTU segment due to recent developments • Larsen & Toubro (India),of generation plants and increase in the dependency on renewablesources in remote areas. • Mitsubishi (Japan),North America: The leading regional market in electrical • Emerson (US),SCADA • Open system International (US),North America is the largest and one of the most advanced markets for • Advanced Control System (US), • Bentek Systems (Canada), etc.Electronic andComputer SoftwareIndustry In IndiaThe Indian electronics products demand is expected to grow at a Compound • India has favorable government policy and regulatory support for theAnnual Growth Rate (CAGR) of 41 per cent during 2017-20 to touch US$ electronics & IT industry.400 billion by 2020. The Indian IT-BPM industry is expected to touch US$350billion mark by 2025 from US$153 billion. • The industry offers a range of services, from low-end application development to high-end integrated IT solutions across multiple verticals, withThe IT & electronics industry is one of the fastest-growing industries in India, a well-developed vendor base.both in terms of production and exports. In fact, software development andIT-enabled services (ITeS) have made India’s brand equity a force to reckon • The Indian IT & software industry adheres to quality processes andwith. According to Nasscom, exports in the IT-BPM sector is expected to grow standards, with most companies aligning operations with internationalat 7-8 per cent (excluding exchange rate fluctuations). The domestic market is standards.expected to grow at rate of 10-11 per cent and likely to add 130,000-150,000jobs in FY2018 • Software technology parks and special economic zones in India provide an affordable real estate space for IT companies.Advantage India Electronics and computer software export promotion council• IT-BPM exports from India are estimated to reach US$ 117 billion (ITservices – US$ 65 billion; BPM – US$ 26 billion; Engineering and R&D • The Electronics and Computer Software Promotion Council (ESC) wasservices (ER&D) – US$ 25 billion) in FY 17; the Indian IT-BPM industry is formed to provide a platform for India’s IT & electronics industry. With exportsestimated to grow significantly to reach US$ 154 billion in FY 17; and the to more than 200 countries, ESC has successfully steered the directionindustry is largest employer of workforce which is around 3.7 million people. of India’s electronics and software exports. ESC offers a comprehensive database of industry companies, and products and capabilities of all major• Total IT-BPM exports from India stood at US$ 107.8 billion in FY 2015-16, players.out of which IT services export stood at US$ 61.0 billion, BPM industry exportsstood at US$ 24.4 billion, and ER&D and Software Product Development • The council facilitates import/export collaborations, joint ventures, sub-exports stood at US$ 22.4 billion. contracting tie-ups, and technology transfers for industry players.• In the technology driven startups, India ranks third in the world (4,750 • It provides access to published reports on markets, products and tradetechnology start-ups in 2016) statistics, business opportunities, and government policies.Spotlight on Indian Electronics 2018-19 | 193

High Priority Market | Power Sector Electronics Sector Skills Council of India (ESSCI) to open 50 new Centre of Excellence across India by 2020• Becomes cost positive in the first three years of operation. The Centres would also develop Qualification Packs, based on National Skill Qualification Framework (NSQF) with the collaboration of industry• Trains over 7 lacs youth in over 60 ESDM roles in the last 5 years associations as a part of the Skill India initiative.• Higher focus on employability for the Electronic System Design N K Mohapatra, CEO, ESSCI said “Currently ESSCI has a network ofManufacturing (ESDM), Solar Electronic and Semiconductor industry 183 Training Partners with over 4013 Training Centers spread across the country, including the far flung areas of North East States and J&K. ThisElectronics Sector Skills Council of India (ESSCI), a Sector Skill Council makes ESSCI a capable council equipped to train the youth across theformed under the Ministry of Skill Development and Entrepreneurship country’s geography and is capable of conducting assessments and(MSDE) – GoI, has announced that it has trained over 7 lac candidates in certification for each region. We have placed over 1 lakh candidates inover 60 ESDM job roles across the country in the last 5 years. ESSCI also various top companies in ESDM space and has won industry recognitionplans to open 50 new Centres of Excellence (CoE) across India by end of as a trend-setting and innovative organization in delivering integrated2020 to train more industry oriented professionals. With this, India is set to skilled training solutions across India.”become self-reliant in the electronics field. About Electronic Sector Skill Council of India: Electronics Sector SkillsESSCI intends to encourage entrepreneurship and innovation in the Council of India (ESSCI) is a Non-for-Profit Organization registered underelectronics space through an extensive partnership with IESA where it is the Indian Companies Act, 1956.The Council has been promoted by sixplaying a pivotal role to reach over 1 lakh relevant engineering students Associations i.e. CEAMA, ELCINA, IESA, IPCA, MAIT & ELCOMA, withacross 500 engineering colleges spanning India in the next 5 years. It will financial support by National Skill Development Corporation (NSDC).help in giving a boost to our government’s plan to advance the electronics ESSCI envisions to enable a world class electronics manufacturingsector manufacturing in India apart from creating jobs. The multi- industry with an ecosystem for skill development and enhancepronged strategy is already in place and have 13 industry sponsored employability of the large number of Indian human resource. ESSCI isCentre of Excellences/Training Centres to train the trainers coming up. committed to enabling a world class electronics manufacturing industryIt has recently opened its centres in Bhubaneswar, Guwahati & New in India through developing an effective ecosystem for addressingDelhi. These CoEs would be the flagship centers for innovation, micro- employment and employability challenges in the ESDM space here. Forentrepreneur development, rural technology innovation & implements, more details visit: http://essc-india.org/advisory, consulting and skill development in the areas of Electronicscomponents & hardwares, Nano-Electronics, Sports and Bio-Mechanics.Excitation SystemsMarketThe excitation systems market is expected to grow from The Asia Pacific region is expected to lead the excitation systems market.an estimated USD 2.64 Billion in 2018 to USD 3.12 Billion Regional governments in the Asia Pacific are promoting the use ofby 2023, at a CAGR of 3.38%. The market is set to grow energy-efficient equipment to save electricity. Synchronous motors areowing to rising demand for synchronous machines in expected to play an important role in meeting energy efficiency targets asend-use application. they are highly efficient in comparison to the induction motor. This factor is expected to drive the market for synchronous machines, thus supportingBrushless excitation segment is expected to be the the growth of excitation systems in the region. Also, rapidly growinglargest market segment for excitation systems market, renewable energy based capacity additions are expected to support theby type. demand for synchronous machines in the coming years.In brushless excitation systems, the field current is supplied to Some of the key players considered in the report are:synchronous machines without using slip rings and carbon brushes.As these systems do not require carbon brushes, losses due to contact • Basler Electric (US),resistance are low, thus resulting in low maintenance as compared tostatic excitation systems. Thus, low maintenance cost as compared to • ABB (Switzerland),static excitation systems is expected to support the market growth forbrushless excitation systems. • GE (US),Digital control is expected to be the fastest growing • ANDRITZ AG (Austria),market segment for excitation systems market, bycontroller type, in 2017 • Rolls Royce Holdings plc (UK), etc.Digital control systems provide a significant improvement in generatorperformance by improving transient as well as dynamic stability. Easyconversion of analog to digital controls is another key factor that isexpected to foster the demand for digital control systems. New productlaunches with major focus on developing digital control systems isanother factor which is anticipated to foster the demand for digital controlsduring the forecast period.Asia Pacific is expected to lead the excitation systemsmarketSpotlight on Indian Electronics 2018-19 | 194

High Priority Market | Power SectorField-Erected • Hamon (Belgium),Cooling Tower • Enexio (Germany),Market • Evapco (US), • BAC (US), etc.The global field-erected cooling tower market was estimated tobe USD 1.78 Billion in 2017 and is expected to grow at a CAGR of3.78%. The market is set to grow due to the increasing demand fromdeveloping markets of Asia Pacific and the growing industrial activities,globally.The wet field-erected tower segment is expected to hold the largestshare of the field-erected cooling tower market, by type.The field-erected cooling tower market has been segmented, by type,into wet, dry, and hybrid. The wet field-erected cooling tower segmentheld the major market share, whereas the dry type segment isprojected to witness the highest growth rate during the forecast period.This growth is due to water consumption efficiencies associatedwith dry type field-erected cooling towers. More industries are acceptingthis kind of design to align with environmental regulations within theirrespective countries.Some of the key players considered in the report are:• SPX (US),Gas Turbines MarketThe gas turbines market is expected to grow from an • Siemens (Germany),estimated USD 17.51 Billion in 2017 to USD 20.66 Billion • MHPS (Japan),by 2022, at a CAGR of 3.36%, from 2017 to 2022. • Ansaldo (Italy)Combined cycle the largest gas turbines market bytechnologyThe combined cycle power plants segment was the largest market and isestimated to account more than two-thirds of the total market. Combinedcycle power plants are similar to open cycle power plants, except, incombined cycle plants, the waste heat from gas turbines is used to makesteam to produce additional electricity using steam turbines. The initialcosts for installation and the investments required till the commissioningof combined cycle power plants are high. Combined cycle power plantshelp lower the total emissions since the exhaust is utilized for otheroperations.Key Players in Gas Turbines Market:• GE (US),Global ElectronicPaper MarketThe global electronic paper (e-paper) market was valued at US $1.876billion in 2017 and is projected to expand at a CAGR of 28.3% to reachUS $8.367 billion by 2023.Various e-paper display gadgets such as e-books, billboards, and digitalsignage are augmenting the demand for e-paper. North America holdsthe largest market share and Asia Pacific is expected to be the emergingmarket in the forecast period. Rise in the technology advancements andgrowing concerns regarding the environmental impacts of consumerelectronics are the major drivers whereas high manufacturing costs isrestraining the global electronic paper market.Major industry players are: Dai Nippon Printing Co. Ltd., Samsung, Sony,Visionect, and Seiko Epson Corporation among others.Spotlight on Indian Electronics 2018-19 | 195

High Priority Market | Power SectorGSelorbviacleEsleMcatrrokneitcss ManufacturingThe total electronics assembly value was $1.4 trillion in outsourcing has slowed, it still represents the most desired manufacturing2016 and will grow to approximately $1.7 trillion in 2021. model for the assembly of advanced electronics products available toFueled by the demand for EMS services, the contract OEM companies. The EMS industry declined approximately 1.1 percentmanufacturing industry will grow from $425 billion in in 2016 as a result of the slowing of sales for PCs (desktop, notebook and2016 to $551 billion in 2021 - approximately at a 5.3 ultra).percent CAGR. Key Companies: 3CEMS, Accton, Alco Electronics, All Circuits, AlphaThe worldwide electronics manufacturing services (EMS) market is a Networks, AmTRAN, AsteelFlash, Benchmark, Beyonics, BMK, CCS,determining force in production of electronics products and now accounts Celestica, Cicor, Compal Electronics, Computime, Connect, Creation,for almost 40 percent of all assembly. While the rate of growth for DBG, Delta Electronics, Di-Nikko, Ducommun, ECS, Elemaster, Elite Industrial, Enics, EOLANE, ESCATEC, Fabrinet, Fideltronik, Firstronic, Flex, Foxconn-Hon Hai, Gemtek Technology, Gigabyte, Global Brands Mfg., GPV, Hana Micro, HANZA Group, IEC Electronics, IMI, Inventec, Jabil, Katek, Katolec, KeyTronicEMS, Kimball, Kitron, LACROIX, Leesys, Lite-On, MC ASSEMBLY, Melecs, Micro-Star, MiTAC, NEO Technology, New Kinpo, Neways, Nippon Mfg., Nortech Systems, NOTE, OSE, Pan- International, PC Partner, PCI, Pegatron, PKC, Plexus, Prettl, Providence, Qisda, Quanta, Sanmina, Scanfil, Season Group, Selcom, Sercomm, Shenzhen Kaifa, SigmaTron, SIIX, SMT Technologies, SMTC, Sparton Technology, Sumitronics, Supermicro, Suzhou Etron, SVI, Topscom, TPV, TQ Group, TSMT, TT Electronics, UMC, USI, V.S. Industry, Valuetronics, Venture, VIDEOTON, VTech, Wistron, WKK, Wong’s, Zollner.Electric Traction Motor MarketThe electric traction motor market is expected to grow The <200 kW segment is expected to be the largest, by power rating, fromfrom an estimated USD 12.41 Billion in 2018 to USD 28.51 2018 to 2023. The factors driving the market for electric traction motors with aBillion by 2023, at a CAGR of 18.10% during the forecast rated power <200 kW include vast implementation of these motors in electricperiod. The market is set to witness significant growth due vehicles and light rail vehicles such as trams, monorail, trolley lines, and streetto the rising demand from railway sector and the increased cars.demand for energy efficient motors. Moreover, the risingdemand of electric vehicles offers promising business Asia Pacific: The largest electric traction motor marketopportunity in the electric traction motor. Asia Pacific is the largest electric traction motor market, by region, during theAC segment is expected to be the largest electric traction forecast period. Rising urbanization and proliferation of electrification, demandmotor market segment, by type, in 2018. from the railway sector, and supportive government plans are expected to drive the market for electric traction motor in this region. China, India, andThe AC segment is expected to be the largest segment of the electric traction Japan are the leading countries contributing to the growth of the electricmotor market, by type, in 2018. AC electric traction motors are widely used in traction motor market in Asia Pacific.the electric vehicles and railway application to provide propulsion and highertorque. Advantages of AC motor, such as less maintenance compared to DC Key Players:motor, better speed acceleration, and higher efficiency are the key drivers forthe growth of the AC electric traction motor market. • CRRC (China),The <200 kW segment accounts for the largest share of the • Alstom (France),electric traction motor market, by power rating • TSA (Austria), • Siemens (Germany), • ABB (Switzerland), • Bosch (Germany), etc.Spotlight on Indian Electronics 2018-19 | 196

High Priority Markets Busbar Protection MarketThe busbar protection market is expected to grow projected to dominate the market. Development of microprocessor- from an estimated USD 3.20 Billion in 2018 to based low-impedance relay is the main driver for the growth of the USD 4.31 Billion by 2023, at a CAGR of 6.10%, low impedance busbar protection market. Countries such as the US, during the forecast period. The market is set to India, China, the UK, and Norway are investing in developing HVDC,witness growth due to the adoption of smart grids and UHVDC, and UHV network for transmitting power from remote locationsHVDC technology in the utilities sector and create new to conventional power plants as well as renewable power plants, whichrevenue pockets for the market. Furthermore, favorable is expected to create the demand for low-impedance busbar protectiongovernment policies coupled with increasing emphasis systems. Furthermore, increasing investment in the smart grid and smarton renewable energy sources globally would boost the substation is expected to create the demand for microprocessor-basedgrowth of the busbar protection market. Delays in grid low-impedance busbar protection systems.expansion projects act as a restraint for the busbarprotection market. Asia Pacific: Key market for busbar protections market during the forecast period.The utilities market is expected to be the largest busbar protectionmarket, by end-user, in 2018. The utilities segment accounted for the The Asia Pacific market was the largest market, by value, for busbarlargest share of the market in 2017, while the transportation segment is protections in 2017, driven largely by China. Asia Pacific is the mostprojected to grow at the fastest pace among all the end-user segments. populated region in the world and consequently witness high demandGrowth in demand for the reliable delivery of electric power led to for electricity. A rise in investments in smart grid technologies and smartincreased investments in the transmission & distribution infrastructure, cities is creating demand for necessary transmission & distributionwhich is likely to create the demand for busbar protection systems in the infrastructure, which in turn, is likely to create demand for the busbarutilities segment. protection market in the region. China accounted for the highest installed generation & distribution capacity in the Asia Pacific region, resultingThe low-impedance segment is expected to hold the in an increased demand for transmission & distribution infrastructure.largest share of the busbar protection market, by Despite the fall in feed-in tariffs for solar energy, Japan is becoming aimpedance, during the forecast period. hub for renewable power and is attracting foreign investors in the power sector. For instance, Goldman Sachs is expected to invest approximatelyThe low-impedance segment is the fastest growing market and is USD 487 million in Japanese renewable projects. These developments in the Japanese power sector are likely to enhance its power generation capacity. These investments in Japan are expected to improve the operation of utility firms and help secure the reliability of grid networks from power outages. Some of the Leading Key Players include: • ABB (Switzerland), • Schneider Electric (France), • GE (US), • Siemens (Germany), • Mitsubishi Electric (Japan), • NR Electric (China), • Toshiba (Japan), • Eaton (Ireland), • ZIV (Spain), etc.Busbar Trunking System MarketThe busbar trunking system market is expected to grow trunking system market in 2016, and is projected to dominate the marketfrom an estimated USD 6.35 Billion in 2017 to USD 8.85 during the forecast period. The segment is expected to grow at theBillion by 2022, registering a CAGR of 6.88%, from 2017 fastest rate. This segment is primarily driven by the increasing numberto 2022. The global market is set to witness a significant of manufacturing activities in South Asian countries and increasinggrowth due to the increasing demand for electricity, renewable sector in the North American countries. This is expected tomultiple operational and technical advantages create new revenue pockets for the busbar trunking system market.to attracted end-users, and stringent regulatory Busbar trunking systems plays a critical role in the T&D sector andrequirements to save power. distributes electricity to the production floors in various manufacturing as well as process industries.The industrial sector is expected to hold the largestshare of the busbar trunking system market, by end-user The sandwich busbar trunking system sub-segment, within the insulation segment, is expected to hold theThe industrial sub-segment, within the end-user segment, led the busbar largest share of the busbar trunking system marketSpotlight on Indian Electronics 2018-19 | 197

High Priority MarketsThe sandwich busbar trunking sub-segment, within the insulation In the sandwich insulation type busbar trunking system, busbars aresegment, led the busbar trunking system market in 2016, and is projected coated with epoxy or cast resin insulation material. This structure is moreto dominate the market. The segment is expected to grow at the fastest compact, energy efficient, flexible, reliable, fire retardant, and economicalrate. as compared to air insulated system. Hence, it is more preferred and used in applications such as wind power generation, data centers, high- rise buildings, IT parks, large retail outlets, warehouses, manufacturing, and process industries. The growing number of commercialization in developing economies, such as China, Japan, Australia, and India, is expected to create new revenue pockets for the busbar trunking system market. The major players of the busbar trunking system market are follows: • ABB, Ltd. (Switzerland) • Siemens AG (Germany) • Schneider Electric (France) • General Electric (U.S.) • Eaton Corporation, Plc (Ireland)Cables and Some of the top players in the cables and accessories market:Accessories • Prysmian (Italy),Market • Nexans (France), • NKT Cables (Germany),The global cables and accessories market is estimated to • General Cables (US), reach USD 121.63 Billion in 2017, and is further projected • Sumitomo (Japan), to reach USD 158.25 Billion by 2022 growing at a CAGR • ABB (Switzerland) of 5.40%. The market is set to witness growth, due toincreasing urbanization, industrialization, and rising demand for electricityfrom the industrial, commercial, and residential sectors.Overhead cables and accessories are cost-effective and convenientto install making it currently more preferred in the entire market. Drivenby the capability to meet increasing power demand and growth inrural electrification in the developing countries such as India, Thailand,Malaysia, this segment is expected witness decent growth during theforecast period.Brushless DCMotors MarketThe brushless DC motors market is expected to grow from an estimated • Johnson Electric (China),USD 5.19 Billion in 2016 to USD 8.15 Billion by 2021, at a CAGR of 9.4%. • Ametek (U.S.), • Nidec Corporation (Japan),The inner rotor brushless DC motors segment is expected to hold • Minebea (France),the largest share of the brushless DC motors market, by type, during • Allied Motion Technologies Inc. (U.S.),the forecast period. The inner rotor brushless DC motors segment • Maxon Motor AG (Switzerland).led the brushless DC motors market in 2015 and is expected to growat the fastest rate during the forecast period, owing to the increasingrequirement of inner rotor brushless DC motor for medical & healthcareapplication. This segment is primarily driven by rising demand for highspeed, highly reliable, and quiet brushless DC motors for medical devicesand healthcare application, and is expected to create new revenuepockets for the brushless DC motors market during the forecast period.The key players considered in the report are: Spotlight on Indian Electronics 2018-19 | 198

High Priority MarketsAdvanced Energy StorageSystems MarketThe advanced energy storage systems market is expected to dominate the market. It is also expected to grow at the fastest rate. Variedgrow from an estimated USD 12.73 Billion in 2017 to USD applications of this technology including its use in large transportation19.04 Billion by 2022, registering a CAGR of 8.38%, from applications is contributing to its growth and a larger market share.2017 to 2022. Energy arbitrage opportunities, renewableenergy installations, and growing electric vehicles market are The pumped hydro sub-segment is also one of the major segment in thedriving the energy storage systems market globally. advanced energy storage systems market and the growth in this market is expected to be driven by the commencement of the new utility scaleEnergy storage system in transportation application is pumped hydro energy storage projects in the Asia Pacific region.expected to emerge as a major segment in the AESSmarket. Asia Pacific: The leading market for advanced energy storage systemsThe transportation segment accounted for a major The energy storage systems market is expanding in developingshare in the advanced energy storage systems countries owing to the progress in renewable energy installationsmarket. Lithium-Ion batteries and growth in the electric vehicles market. The Asia Pacific energyheld a major share in the storage systems market is expected to dominate the global AESS market,transportation sector in 2016. with the highest share. The region is expected to maintain its dominance in the energy storage systemsBattery-powered vehiclesavailable today include hybridvehicles, plug-in hybridvehicles, and electric vehicles.With ongoing research anddevelopment activities by major market.automotive companies, the Key Players:usage of lithium-ion batteries is expected to • ABB Ltd. (Switzerland),increase at a rapid rate in electric vehicles by 2022. • LG Chem, Ltd. (South Korea),The lithium-ion sub-segment is expected to hold the largest • Samsung SDI Co, Ltd (South Korea)share of the advanced energy storage systems market. • Tesla, Inc. (US).The lithium-ion battery sub-segment, within the technology segment, ledthe advanced energy storage systems market in 2016, and is projected toCryogenic Valve MarketThe cryogenic valve market is expected to grow from an The ball valve segment is expected to be the fastest growingestimated USD 3.00 Billion in 2018 to USD 3.75 Billion by segment of the cryogenic valve market2023, at a CAGR of 4.51%, from 2018 to 2023. This growth isprimarily due to the rising production and trade of LNG to The ball valve segment is expected to be the fastest growing market frommeet the LNG demand from various countries globally. High 2018 to 2023. These valves have 90-degree rotation, which opens anddemand for industrial gases (nitrogen, oxygen, argon,helium, and others) from industries such as food closes the valve, giving them a reliable and airtight sealing.& beverage, electronics, and chemicals is further They have better flow characteristics than globe valves.expected to boost the cryogenic valve market. Ball valves are quick and simple to operate and preferredThe energy & power segment is expected to hold for automation. Ball valves are less suitable, where tight shut-the largest share of the cryogenic valve market, by off is required.function. Asia Pacific: The leading market for cryogenic valveThe energy & power segment led the cryogenic valve market in system2017 and is projected to dominate the market. Cryogenic valves arewidely used in the energy & power industry. They are installed for Asia Pacific is expected to hold for the largest market share in thethe process of liquefication, transportation, and regasification. global cryogenic valve market in 2018. Countries such as China, India,The rise in the trade of LNG across the world is one of the Australia, and Japan have huge demand for LNG, electronic equipment,major drivers of the energy & power segment. chemicals, and metallurgy processes to meet the growingLNG is expected to be the fastest growing segment demand from residential and industrial sectors.of the cryogenic valve market Key Players:The LNG segment is expected to hold the largest marketshare from 2018 to 2023. It is considered as the major source of energy. • Schlumberger(US),LNG is also being used in power generation in the automotive sector,while many countries are adopting LNG as its fuel for various applications • Emerson (US),in other industries as well. LNG is primarily used in shipbuilding, powergeneration, and automotive industries. • Parker (US), • Flowserve (US), • Weir Group (Scotland), etc. Spotlight on Indian Electronics 2018-19 | 199

High Priority MarketsDigital Utility MarketThe digital utility market is expected to grow from an create new revenue pockets for the digital utility market.estimated USD 135.16 Billion in 2017 to USD 244.31 Billionby 2022, at a CAGR of 12.57%, from 2017 to 2022. The global The hardware sub segment is expected to hold the largestmarket is set to witness a significant growth due to the share of the digital utility market, by technology.increase in distributed and renewable power generationprojects and regulatory requirements for electric utilities. The hardware sub segment of the technology segment led the digital utility market in 2016 and is projected to dominate the market. However,The transmission and distribution segment is expected the integrated solutions segment is expected to grow at the fastest rate.to hold the largest share of the digital utility market, bynetwork. The hardware segment includes all the tangible aspects of the digital utility market. It covers equipment, from smart meters to smart transformersThe transmission and distribution sub segment of the network segment and all the products of a digital substation. It also encompasses all theled the digital utility market in 2016 and is projected to dominate the components that make conventional equipment smart, such as sensors,market. However, the retail segment is expected to grow at the fastest smart thermostats, and programmable logic controllers, among others.rate. Hardware generally costs more than other digital solutions and services and, hence, the segment accounts for a larger share of the market.The growth of the transmission and distribution segment is primarilydriven by aging infrastructure in the power utilities industry. New digital North America: The leading market for digital utilitydevices and communications and control systems improve the efficiencyof assets and increase the ability of operators to monitor and manage The utilities in North America have been undergoing a digitalelectric transmission and distribution systems. This would ultimately transformation for the past several years. Utility providers in the region are focused on the up gradation of power infrastructure through digital technologies such as smart meters and smart grids, among others. The U.S. government launched the Smart Grid Investment Grant (SGIG) program for smart grid development. There was an investment of USD 118.5 billion, in 2016, in smart cities in the region; this is expected to increase to USD 244.5 billion by 2021. Hence, the North American market presents a greater opportunity for the digital utility market. Key Players - • Accenture plc (Ireland) • Cap Gemini S.A. (France) • General Electric Company (U.S.) • Siemens AG (Germany) • SAP SE (Germany) • International Business Machines Corporation (U.S.)Distributed Control Systems MarketThe distributed control systems (DCS) market is expected Industries such as oil & gas, power generation, and water and wastewaterto grow from an estimated USD 15.95 Billion in 2017 to USD treatment employ the continuous process. Investments in the nuclear and20.33 Billion by 2022, at a CAGR of 4.97%. renewable sectors of the power generation industry will drive the continuous process segment.The software segment is expected to account for the largestshare of the DCS market, by component Asia Pacific is expected to be the leading DCS marketThe software segment of the DCS market is expected to be the largest The market in Asia Pacific is expected to dominate the global DCS marketmarket in 2017. Software components include IT application parts due to growing industrial infrastructure and increased investments in powerand services such as installation, maintenance, and upgradation. The generation in countries such as China, India, Indonesia, and Vietnam. Theupgradation of software and upcoming technologies are expected to drive governments of these countries have ambitious plans to achieve completethe DCS market. electrification to support their rising population and industrial needs.The continuous process segment is expected to be the largest Key Players:DCS market in 2017 • ABB (Switzerland),The continuous process segment is expected to lead the DCS market. • Siemens (Germany), • Honeywell (US), • Yokogawa (Japan), • Emerson (US), • Schneider Electric (France), • General Electric (US), • Rockwell (US), • Toshiba (Australia), • Metso (Finland), • Azbil (Japan),Spotlight on Indian Electronics 2018-19 | 200

High Priority MarketsIndustrial Filtration Market The industrial The nonwoven fabric, by filter for industrial filtration is filtration expected to be the fastest-growing segment of the market market is expected to The nonwoven fabric, by filter media, for industrial filtration is expected to grow from an grow at the highest CAGR from 2018 to 2023. These nonwoven fabric filter estimated USD bags are made from nonwoven Polypropylene (PP) fabric and are durable, 25.89 Billion reusable, water-resistant, hypoallergenic, fire-resistant, soft, light, and in 2018 to USD sometimes washable. These bags are used in various end-user industries, 35.47 Billion such as pharmaceuticals and mineral processing by 2023, registering Asia Pacific: A leading market for industrial filtration a CAGR of 6.50%. This Asia Pacific was expected to account for the largest market share of thegrowth is primarily due to the growing industrialization and global industrial filtration market in 2017. Emission regulations accompaniedurbanization, stringent regulations pertaining to emissions with the need for clean indoor air facilities is one of the major factors thatand treatment of industrial waste, and requirement of safe drives this market. The growth in manufacturing, power generation, oilworking environment in industrial facilities. & gas, and food & beverage industries has laid a great influence in the economic development of the countries in the region. China accounted forOn the basis of industry, the manufacturing segment is the largest share of the industrial filtration market in Asia Pacific in 2017.expected to hold the largest share of the market Key Players:The manufacturing industry dominated the industrial filtration market in2017. This segment includes machinery & equipment, chemical, electrical • Alfa Laval (Sweden),& electronics (includes semiconductors), and pulp & paper industries.Industrial filtration is gaining its importance across all end-use markets • Ahlstrom-Munksjö (Finland),due to strict environmental regulations and enforcement of cleanerprocesses and technologies. Furthermore, the market for the manufacturing • Donaldson (US),segment will be driven by the Asia Pacific region, particularly increasingmanufacturing hubs in the Southeast Asian countries, along with China, • Eaton (Ireland),which is already the world’s leading country in the manufacturing sector. • Freudenberg (Germany), • Mann+Hummel (Germany), • Pall Corporation (US), • Parker Hannifin (US), etc.Instrument Transformers MarketThe instrument transformers market is expected to grow Agency. Approximately, 56% of the total energy investment accounts forfrom an estimated USD 7.32 Billion in 2017 to USD 9.06 transmission and distribution. Refurbishment and replacement of existingBillion by 2022, registering a CAGR of 4.35%. This growth is assets contribute 40% and the grid integration of renewables accountsprimarily due to the increasing emphasis on alternative energy for 4%. Instrument transformers are a major part of the transmission andproduction, refurbishment of aging infrastructure, and huge distribution infrastructure, used for measurement as well as protection ofinvestments in smart grids and energy systems across the the system. Approximately 10% of the total substation cost is dedicatedworld. to procurement and installation of instrument transformers. With the increasing investments in the power infrastructure, the market for instrumentThe power utilities segment is expected to hold the largest transformers tends to grow.share of the instrument transformers market, by end-user Capacitive potential transformers to be the fastest growingThe power utilities segment led the instrument transformers market in2016, and is projected to dominate the market. The total investment segment in the instrument transformers marketin the transmission and distribution infrastructure over 2014 to 2035 isexpected to be USD 6.8 trillion, according to the International Energy With regard to the type segment, capacitive potential transformers are expected to constitute the fastest growing market from 2017 to 2022. Capacitive potential transformers are used to measure voltages above 66 kV. In these types of transformers, capacitors are used as voltage dividers. These capacitors are connected in series where the voltage drop takes place. Unlike inductive voltage transformers, capacitive voltage transformers usually have a ferro resonance damping circuit built into the instrument transformers itself. Apart from voltage measurement, these capacitive voltage transformers are also used as high pass filters. These days transmission lines are used for communication purposes as well. The information at high frequencies (in MHz) are conveyed through transmission lines from one grid to another and is known as Power Line Carrier Communication (PLCC). Capacitive voltage transformers, when used as high pass filters, helps in PLCC. Asia Pacific: The leading market for instrument transformers Asia Pacific is expected to account for the largest market share of 36% in the global instrument transformers market in 2017. Countries such asSpotlight on Indian Electronics 2018-19 | 201

High Priority MarketsChina, Japan, and India are investing in grid expansion projects to increase in 2017. This would require grid connected as well as local distributiontheir distribution grid reliability. China accounted for the largest share networks. These factors are expected to drive the growth of the instrumentof the instrument transformers market in Asia Pacific in 2016. It has the transformers market in Asia Pacific.highest installed power generation and distribution capacities, resulting inan increased demand for transformers. The country, which is an export- Key Players:oriented economy, has witnessed an exponential growth in the demandfor electricity in the past couple of decades, fueled by industrialization and • ABB (Switzerland),infrastructural developments. Meanwhile, the next strongest economy, India,is also adding up its renewable energy capacity annually. For instance, the • Siemens (Germany),country is the third-largest electricity producer in the world and is likely togenerate approximately 30 GW of power from renewable energy sources • Schneider Electric (France), • GE (US).Germany Electrical &Electronics Retail MarketInsights with Statistics andGrowth PredictionElectrical & Electronics Retail in Germany industry profile provides top-line desktops and laptop computers, software, memoryqualitative and quantitative summary information including: market size sticks, CD packs, hard disks and other data storage(value 2013-17, and forecast to 2022). The profile also contains descriptions devices, computer peripherals, PDAs, organizers,of the leading players including key financial metrics and analysis of calculators, and satellite navigation systems. Consumercompetitive pressures within the market. electronics includes retail sales of CD players, DVD players and recorders, hi-fi systems, home theatres, in-The vast market research data included in the study is the result of extensive car entertainment systems, portable digital radios, radios,primary and secondary research activities. Surveys, personal interviews, televisions and video recorders, home use and portableand inputs from industry experts from the crux of primary research activities games consoles. Household appliances includes majorand data collected from trade journals, industry databases, and reputable domestic appliances (air conditioners, dishwashers,paid sources form the basis of secondary research. The report also dryers, freezers, hobs and extractors, microwave ovens,includes a detailed qualitative and quantitative analysis of the market, with refrigerators, stoves, vacuum cleaners and washingthe help of information collected from market participants operating across machines) plus minor domestic appliances (blenders,key sectors of the market value chain. A separate analysis of macro- and coffee machines, deep fryers, food processors, grills,micro-economic aspects, regulations, and trends influencing the overall hair products, hair trimmers, curling tongs, razors,development of the market is also included in the report. hand-held mixers, irons, juicers, kettles, stand mixers, toasters, sun lamps and fans). Photographic equipmentKey Highlights: includes camcorders, cameras, projectors, camera and camcorder accessories, binoculars and telescopes. The– The electrical and electronics retail market is comprised of the sales of market is valued at retail selling price (RSP) with any currency conversionscommunications equipment, computer hardware and software, consumer calculated using constant 2016 annual average exchange rates.electronics, household appliances, and photographic equipment.Communications equipment includes retail sales only of answer machines, – The German electrical and electronics retail market is expected tofax machines, fixed-line telephones, mobile phone accessories and mobile generate total revenue of $54.3bn in 2017, representing a compoundphones. Computer hardware and software includes retail sales only of annual growth rate (CAGR) of 3.1% between 2013 and 2017. – The household appliances segment is expected to be the market’s most lucrative in 2017, with total revenue of $15.6bn, equivalent to 28.7% of the market’s overall value. – Photographic equipment is becoming obsolete to the casual consumer, with smartphones and tablets providing similar functionality but with much greater utility, explaining the segment’s collapse in recent years. The smartphone’s popularity has also contributed to the strength of the communications equipment segment. Spotlight on Indian Electronics 2018-19 | 202

High Priority Market | I4.0Industry 4.o: IndiaInc. Gearing Up for ChangeIn India, the adoption of Industry 4.0 is at a nascent government’s role in India’s Industry 4.0 story goes stage. Widespread implementation still looks to much beyond just enabling the MSME segment. With a be some years away due to challenges such as large manufacturing base, a significant IT industry and a the need for high investment outlay, inadequate burgeoning consumer base, India is in a unique positionknowhow, lack of infrastructure and lack of adequate cy- to fully harness the potential of Industry 4.0, providedbersecurity norms. However, with benefits such as cost there is strong governing force orchestrating the ecosys-reduction, higher efficiencies, safer factories and faster tem and bringing these individual components together.speed to market, Industry 4.0 can provide the country’s Given the strong role of advanced technology in In-manufacturing sector the much-needed platform to stay dustry 4.0, there is also a need to demystify the corecompetitive in the global market. skill requirements of Industry 4.0 through educationFurthermore, with the government’s focus on manufac- and enablement. Best practices from nations that haveturing through programmes such as ‘Make in India’ and succeeded with Industry 4.0, such as Germany, showpolicies such as the ‘National Policy for Advanced Manu- that the government has a strong role to play here toofacturing’, Industry 4.0 could play a key role in boosting by mandating relevant curriculum in educational insti-the manufacturing sector’s share in the country’s GDP to tutes as well as in the vocational training infrastructure.25 per cent by 2022 from the current 17 per cent. That Partnering with the industry, the government can use itssaid, for the true value of Industry 4.0 to be unleashed, vast research infrastructure to encourage innovation andit has to transcend large manufacturing companies and learning around Industry 4.0.become accessible to the 50 million plus enterprises This report looks into the state of Industry 4.0 adoptionthat make up India’s MSME sector, accounting for about in India. Starting with understanding what Industry45 per cent of total manufacturing output and 40 per 4.0 entails, the report explores the various technologycent of total export. levers enabling the phenomenon, compares India’s In-This is where the Indian government assumes the role dustry 4.0 landscape with that of global peers, assessesof a critical stakeholder. Putting the Indian MSME sector benefits and challenges for India’s manufacturers, andat the forefront of the fourth Industrial revolution will analyses the key enablers that are required to take theneed significant push in terms of funds, infrastruc- Industry 4.0 landscape in the country to the level of ma-ture, technical knowhow and exposure — areas where turity it has the potential to attain. The report looks atthe government’s intervention can make a significant building a supporting ecosystem combining forces fromimpact and make the benefits of Industry 4.0 acces- the government, enterprises and academia, highlightingsible to the bottom of the pyramid. Furthermore, the the role that each of the stakeholders can play to makeSpoStpligothlitgohnt oInndIinadniaEnleEclterocntriocnsic2s01280-1189-1|9203

High Priority Market | I4.0Indian manufacturing flourish on the back of advanced technology Widespread adoption ofand next-generation leadership and talent. I4.0 is likely to benefitThe report is built on key themes identified and deliberated on manufacturers in sever-jointly between the All India Management Association (AIMA) and al ways:KPMG in India. Along with data sourced through desk research, it — Cost reduction andalso includes input and opinion from senior industry leaders and efficiency: Cyber-physi-partners. cal systems can monitor the factory processesWhat is Industry 4.0? and make decentralised decisions, enabling fasterAfter going through three industrial revolutions that brought processing. For instance,about significant technological developments over a period of a connected factory is ca-more than two centuries, the world is currently witnessing the pable of taking automat-fourth Industrial revolution, which is taking technology adoption ed self-correction mea-by the world’s factories to a whole new level. sures in the instance ofThis fourth industrial revolution, or Industry 4.0 (I4.0), is bringing errors. Technologies suchtogether the different silos in a production system via a network, as 3D printing and laserallowing real-time data sharing and facilitating machine-to-ma- technology allow betterchine and human-tomachine interactions of unprecedented speed utilisation of resourcesand scale. This is giving rise to seamlessly integrated value chains such as the shop floor,with inter-connected cyber and physical systems, enabling decen- thereby adding to thetralised decision-making and unprecedented levels of automation. operational efficiencies.The digitalisation of the entire manufacturing value chain starting This leads to cost savings,from the procurement of raw materials and extending right up to better productivity andcustomer service using mobile devices, communication networks, faster time to market.sensors and actuators is completely transforming how the world’s — Value add: Digitalfactories operate. manufacturing technolo- gies, such as 3D printing, laser cutting, CNC-milling and robotic assembly, allow manufacturing of products in small batches, thereby allowing for better customisation, quality and value add. — Health and safety of factory workers: By eliminating the need for human presence and intervention in certain high-risk tasks and envi- ronments, I4.0 can help manufacturers avoid exposing workers to health hazards and reduce fatalities on the factory floor. From I1.0 to I4.0 — the rise of the connected ecosystem After seeing constant progress on the back of mechanisation, electrification and the advent of the assembly line over two centuries, the global manufacturing industry adopted information technology in the 1960s, when computers came into the forefront of development, simplifying human effort. From then to now, both operational technology and information technology have come a long way, unleashing a vast plethora of possibilities on the factory floor through I4.0. Spotlight on Indian Electronics 2018-19 | 204

NDEXBlue Chip Companies207 SMT & Through Hole Equipments 227 LED Lighting208 PCB Manufacturers 230 Test & Measurement (MFRs)210 Battery Manufacturers 232 Test & Measurement (Suppliers)212 Electronic Component Traders 232 Cabinet Manufacturers216 Chemicals & Consumables 233 Connectors & Cables217 EMS & ODM 234 Security Systems220 Electronic Design & Simulation 235 Resistors221 Embedded Electronics 236 Solar Panels, Modules & Cells222 Power Electronics 238 Semiconductor223 UPS Inverters Manufacturers 239 Soldering & Desoldering225 Quality Certification Consultants 240 SMPS227 LED Chips Manufacturers 241 Sensors Manufacturers Spotlight on Indian Electronics 2018-19 | 206

Blue Chip Companies SMT & Through Hole Equipments Leading PlayersNMTronics India Pvt Ltd ChipMax Design Pvt. Ltd Accurex Solutions Pvt LtdAddress: SDF NO. E-17 & C-2, Noida Special Address: #45, 1st Floor, 2nd Cross, Near Address: #782, 3rd Main, 1 Cross, BEMLEconomic zone, Noida Dadri Road, Phase-II, Lakshmi Gold Paradise, Manorayana Palya, Layout, 5th Stage, Rajarajeswari Nagar,Noida 201305 R.T.Nagar Bangalore-560032 Bengaluru 560 098;T: +91-120-4603500; T: +91 80 23656465 T: +91-80-28611871E: [email protected]; W: www.nmtronics. E: [email protected] W: www. E: [email protected]; W: www.com chipmax.in accurexsolutions.comSoni Saran Singh, executive director Bejoy George, Director Contact Person: Ram Mohan, Managing directorMaxim SMT Technologies Pvt Ltd UNISERT MACHINES (I) PVT. LTD.Address: Plot No.145, Sector-7, IMT Manesar, Address: 228, Udyog Kendra - II, Ecotech - III, Agate & Agate Marketing Resources PvtGurgaon-122050; Haryana Greater Noida -201306 LtdT: +91-124-4346042-43; Sales Hotline: +91- T: +91-9810117299; E: [email protected]; W: Address: 327, Siddharth Towers, 12/3B,9540870431 www.unisert.in Kothrud, Pune - 411038,E: [email protected]; [email protected]; Contact Person: Deepak Dudeja - Director T: +91-20-25469864 / 65W: www.maximsmt.com E: [email protected]; W: www.smt-india.Alok Batla, Country Manager Bergen Associates Pvt Ltd com Address: 311, Time Tower, MG Road, Sector-28, Contact Person: Ashutosh Agate - FounderLeaptech Corporation Gurugram-122002Address: 812 Cosmos, Sector 11, CBD Belapur, T : +91 0124 4986 400 ; +91 0124 6900 508- American Tec Co. LtdNew Mumbai 400614; Maharastra 509 Address: B-58, Sector-65, Noida, Uttar PradeshT: + 91-22-27562822, + 91-22-27562849; F: +91 0124 4986 405 201301,E: [email protected], leaptechbby@gmail. E: [email protected]; bergene@ T: +91-120-4367120com; vsnl.com E: [email protected]; salesindia@W: www.leaptech.in W: www.bergengroupindia.com americantec.comSuresh Nair, director, Leaptech Corporation Rajinder Kumar Kaura, CEO, Bergen Associates W: www.americantec.com Pvt Ltd Ong Kay Huat - CEOTrans Technology India Pvt LtdAddress: Ground Floor, Plot No.429, Sector 37, Bergen Systems Pvt Ltd* Essemtronics India Pvt.Ltd.Pace City II, Gurgaon, Haryana 122001; Address: 409, Sector - 8, IMT Manesar, Address: S3, Swathi Mansion, Vinayaka Layout,T: +91 124 4066919; GURGAON - 122050 2nd Stage, 12th Main, Nagarbhavi, Bangalore,E: [email protected]; W: www. T: 0124-4599124,125 India.trans-tec.com E: [email protected]; W: www. M:+91 (0)9880795227, T: +91 80 23188280,Chirstoper J Fussner, founder & president, bergenindia.com Email: [email protected]; sales(at)TransTechnology India Pvt Ltd essemtronics.com EMST Marketing Pvt Ltd* www.essemtronics.comiNETest Technologies India Pvt Ltd Address: Gate No 322, Plot No 1, Pirangut TalAddress: No.7/4, 1st Main Road, Leo Muthu Mulshi, Juki India Private LimitedStreet, Kalaimagal Nagar, Ekkaduthangal Pune 412115; Maharastra Address: 1090/I,Ground & First Floor,Chennai - 600032; Tamilnadu T: +91 20 3250 1000; 18th Cross,Sector III, HSR Layout,T: +91 44 45985500 / 22250751 ; E: india. E: [email protected]; W: www. [email protected] emstonline.com T: +91-22-42291160/61/62; +91-80-42511900W: www.inetest.co.in F: +91-80-42511999Soni Saran Singh, Managing Director E: [email protected], [email protected]; W: www.jukiindia.com Spotlight on Indian Electronics 2018-19 | 207

Blue Chip Companies PCB Manufacturing Leading PlayersAT&S India Pvt Ltd Meena Circuits Pvt LtdAddress: No.12 A, Industrial Area, Nanjangud, Mysore - 571301, Address: Survey # 99/1, Village Vadadala, Jarod-Salvi Road, Tal: Savli, Dist.T: +91-8221304040, Vadodara 391520 (Gujarat) India.E: [email protected], [email protected] T: +91-2667-251791/251792;W: www.ats.net E: [email protected], [email protected];Guenter Hermann Weiss - MD & CEO W: www.meenacircuits.com BH Patel - ChairmanEltek CircuitsAddress: CB-10, Ring Road, Naraina, New Delhi-110028 Circuit Systems (India) LimitedT: +91-11-25771398, +91-9810017131 Address: A-1001/1002,Titanium Squre, Thaltej Cross Road, S.G. Highway,E: [email protected], [email protected] Ahmedabad -380054W: www.eltekcircuits.com T: 079-23287086/87/88,Naveen Pal Singh E: [email protected]; W: www.mycsil.com Paresh Vasani - MDGenus Electrotech LtdAddress: Survey No.43, Galpadar Road, Anjar, Dist. Kutch-370110, SMD Electronics Pvt LtdT: +91-2836-240872, 394232, 395866, 248212 Address: 42A/13, 1st Floor ,’R’ Block, Near Laxmi Narayan Mandir, DilshadE: [email protected], Garden, Delhi - 110 095W: www.genuselectrotech.co.in T: +91-11-22594752, 65909412; M: 9810181148 , 9810282348Vishnu Todi - MD E: [email protected]; W: www.smdcircuits.comShogini Technoarts Pvt Ltd Sanjay Agarwal - DirectorAddress: Shogini, S. No. 5, Katraj -Sinhagad Road By Pass, Near SinhagadRoad Fly Over, Ambegaon Budruk, Pune 411 046 Automated Circuits & SystemsT: +91-9822002395, Address: F2 -F3 , Sachdeva Arcade , Plot B-15, LSC , Mayour Vihar Phase-II,E: [email protected], [email protected] Delhi - 110091W: www.shogini.com T: +91-11-22784231; M: 9810068997;Satish Athavale - MD E: [email protected] Ajit Agrawal - DirectorAscent Circuits Pvt LtdAddress: Plot No. 111, Sipcot Industrial Complex, Phase - 1, Hosur - 635126, Supreme CircuitsTamil Nadu, India. Address: F-46,Okhla Industrial Area Phase-I, Delhi - 110020T: +91-04344-271123/271124/271125 T: 011- 26810308; M: 91-9811054272E: [email protected], [email protected] F: 91- 11- 41709190;W: www.ascentcircuits.com E: [email protected]; W: www.supremecircuits.inP Manjunath - MD K.V. Sood - CEOEpitome Components Ltd Fine-Line Circuits LtdAddress: G-17, MIDC, Ahmednagar – 414111, Maharashtra Address: 145, SDF-V, SEEPZ-SEZ, Andheri (E), Mumbai-400096.T: +91-9970053301, +91-2488-243136, +91-241-27781 T: +91-22-28290244/45;E: [email protected], [email protected] E: [email protected],W: www.epitomeindia.com W: www.finelineindia.comRavi Sharma - CEO Abhay B Doshi - MDCipsa Tec India Pvt Ltd Micropack LtdAddress: Plot No. 7 & 8 Hirehalli Indl. Area Hirehalli, Tumkur - 572168, Address: Plot #16, Jigani Industrial Area, Anekal Taluk,T: 0816-2243400 Bangalore - 560105, Karnataka, IndiaE: [email protected]; T: +91-80-27825223/27825224;W: www.cipsatec.com E: [email protected];Alok Garg - MD W: www.micro-pack.com | Sreekar Reddy - CEO Spotlight on Indian Electronics 2018-19 | 208

Vintek Circuits India Pvt Ltd Blue Chip CompaniesAddress: Plot No. 241 & 244, Sector -7, IMT Manesar,Gurgaon - 122050, Haryana, India. Alpha-Imager Pvt LtdT: +91 124 4367770 / 1 /2 /3; F: +91 124 4367774 Address: 2711, 2 Main, HAL 3 Stage, Bangalore - 560 075E: [email protected], [email protected]; E: [email protected]: www.vintek.co.in T: +91 80 2521 3355Vinit Lal - Director W: www.alphaimager.comGarg Electronics Pvt Ltd Anand Electronics & Industries LtdAddress: Plot No:195-196, Industrial Area, Phase 2, Address: Krishnagiri Road, Hosur-635109Panchkula - 134113, Haryana T: 91-4344 - 242351, 242322, 657142, 657143, 657422T: +91-172-2591449; F: 91-4344-243177E: [email protected], [email protected]; W: www.anand-electronics.comW: www.gargelectronics.com Contact Person: S.A. Rajkumar - Managing DirectorRajneesh Garg - Chairman Arktron ElectronicsBLG Electronics Ltd Address: Plot No. 605, Electroplating Zone, Sector- 58,Address: E-26 GIDC Electronics Estate, Gandhinagar, Gujarat, Faridabad - 121004, Haryana, IndiaT: +91-79-3224479, 3224481 T: 08048601696E: [email protected]; W: www.blgpcb.com Saket Mittal ( Manager )Rohit Raisurana - Director Asha Electronics Pvt. Ltd.Sulakshana Circuits Ltd Address: F-16, MIDC, Opp. Seepz, Andheri (E), Mumbai - 400 093,Address: Plot No. 36 & 37, ANRICH Industrial Estate, IDA Bollaram, T: +91-22-2834 5675Hyderabad – 500 032 F: +91-22-2836 3147T: +91-40-3242-0340 E: [email protected]: +91-8458-279 583E: [email protected] BPL ltd (PCB Division) Address: No.28-B/29, Kiadb Industrial Area, Doddaballapur, Bangalore –BLG Electronics Ltd 561203Address: E-26 GIDC Electronics Estate, Gandhinagar T: +(91)-80-26484314, 18004252355T: +91- 79-3224479, 3224481E: [email protected], W: www.blgpcb.com CIPSA-RIC Pvt LtdRohit Raisurana - Director Address: Plot No.7 & 8, Hirehalli Indl.Area, Tumkur-572168, Kyathsandra, Karnataka 572168,Bergen Group of Companies T: 0816 224 3400Address: 311, Time Tower, MG Road, Sector-28, Gurugram-122002 F: 0816-2243700T: +91 0124 4986 400; Sales: +91 0124 6900 508-509F: +91 0124 4986 405 Classic TracksE: [email protected] Address: Plot No: 14, Suba Lakshmi Nagar, Bala Murugam Koil Road, (Near Porur Garden), Mettukuppam, Vanagaram, Chennai 600 095Accurate Circuits & System T: 044-24763474 / 75; M: + 91 94440 69198Address: 32/A Anand Iindustrial State ITS Collage Mohan Nagar, Ghaziabad, E:[email protected] PradeshM: +91-9810335859 Cosmic Engineering EnterprisesE: [email protected], [email protected] Address: Plot No.37, Electronic Complex, Ecil ‘N’ Road, Kushaiguda,W: www.accuratecircuits.in, www.acspcb.in, www.pcbdesign.in Hyderabad, Telangana, India T: +(91)-40 27120466, 27123692, 27125310, 27122665Advance Technologies M: +(91)-9392003666, 9347271999, 9347275888Address: AAG-09, Azure Shipra Krishna, Near Kaushambi Metro Station,Kaushambi, Ghaziabad - 201 010 AncompT: +91-120-4164451; M: +91-9810139334 Address: A-171, Basement, Dayanand Clny, Lajpat Nagar, Near RamaE: [email protected] Booksellers, Delhi - 110024, T: +(91)-11-26449501, 26449505; M +(91)-9999769501, 9266669501Akasaka Electronics Ltd E: [email protected]: C-107, M.I.D.C. TTC Industrial Area, Pawane, W: www.ancompindia.comNavi Mumbai - 400703T: 91 22 2761 7371F: 91 22 2767 0140W: www.akasakapcb.comSunil Sital Kishinchandani - Whole-Time DirectorSpotlight on Indian Electronics 2018-19 | 209

Blue Chip Companies Battery Manufacturers Leading Players] Fusion Power SystemsExide Industries Ltd Address: A-221, Street No. 7 Road No. 4, Mahipalpur Extn.,Address: TK Ray, VP, institutional UPS, railways, telecom & solar Delhi - 110037Address: 6A, Hatibagan Road, Entally, Kolkata 700 014, T: 011 2678 2717;T: 033 2286 6158/6159; M: 9810190011W: www.exideindustries.com W: www.amptekindia.inJitendra Kumar, Company Secretary and Senior Vice President Kapil Sood, CEOFusion Power SystemsAmara Raja Batteries Ltd Okaya Power LtdAddress: Terminal A, 1-18/1/AMR/NR, Nanakramguda, Gachibowli, Hyderabad Address: 1st Floor, D-7, Udyog Nagar, Rohtak Road,– 500032, Telengana, India New Delhi 110041;T: +91–40-23139000; F: +91–40-23139001 T: +91 11 46472010, F: +91 11 45112390;E: [email protected]; E: [email protected];W: www.amararaja.co.in W: www.okayapower.com Rajesh Gupta, managing directorLuminous Power Technologies Pvt Ltd Southern Batteries Pvt LtdAddress: C-56, Mayapuri Industrial Area, Phase-II, Mayapuri, Address: Unit II (HO), No 328, Bommasandra-Jigani link Road, JiganiNew Delhi -110064; Industrial Area, Anekal Taluk, Bengaluru 562106;T: +91-11-28116370; Fax: + 91-11-25558912; T: 91 80 22010000 to 22010099,E: [email protected] F: 91 80 27826633;W: www.luminousindia.com W: www.southernbatteries.comManish Pant, Managing Director Raghavan Sreenivasan, managing directorHBL Power Systems Ltd Coslight India Telecom Pvt Ltd.Address: No 8-2-601, Road No.10, Banjara Hills, Address: Plot No - 59, Sec-6, IMT Manesar, HaryanaHyderabad - 500034, Telengana T: +91-124-4708974, 4666197; M: +91-9999119490T: +91 40 23355575/+91 40 23355085; F: +91-124-4204060;F: +91 40 23355048; E: [email protected]: [email protected]; W: www.hbl.in W: www.coslightindia.inAvnish Arora, Vice President, Sales Contact Person: Sunil Bhatnagar - Director- Sales & MarketingSu-Kam Power Systems Ltd Kandhari Photo Electronics Pvt LtdAddress: Plot No. 54, Udyog Vihar, Phase VI, Sector-37, Gurgaon 122001; Address: 2/1, Vishal Market, BP Colony, Delhi - 110006Haryana T: +91-11-47062398, 96, 97;T: +91 124-4030700, 4170500; F: +91 124 4038700/1 F: +91-11-27456014W: www.su-kam.com E: [email protected], [email protected] Sachdev, founder & MD Contact Person: S. S. KandhariBase Corporation Ltd True Power International LtdAddress: B Wing, 128/B, 7th Floor, Golden Towers, Kodihalli, Old Airport Road, Address: BG-135, Sanjay Gandhi Transport Nagar, Delhi 110 042;Bangalore – 560 017; T: +91 11 2783 3603, 2783 3604;T: +91-080-41635909, 40621900 F: +91 11 2783 3606;E: [email protected]; W: www.basebatteries.com E: [email protected]; W: www.truepower.in Ravi Mudra, CEO Spotlight on Indian Electronics 2018-19 | 210

Evolute Solutions Pvt Ltd Blue Chip CompaniesAddress: 4th Floor, Vasundhara Building, Above Indu Arts and Frames, S.VRoad, Vile Parle (west) Mumbai - 400 056, Maharastra Deepak Power Storage EnterprisesT: +91 22 28263722; F: +91 22 28263723 Address: 803, Indra Parkash, 21, Bharakhamba Road,E: [email protected] | [email protected] New Delhi 110 001W: www.evolute-sol.com | Parag Mehta, chairman and managing director T:+91-11-32943464; M:+919871925558, E-mail :[email protected] Technologies Pvt Ltd W: www.deepakbatteries.comAddress: 45/1, 4th Cross, Malleswaram, Bengaluru 560003; Contact Person: Mr. Sukhminder Singh Brar (Sales Director)M: +91 97380 20930;T: +91 80 4245 9459; E POWER INDUSTRIESF: +91 80 4245 9460; Address: 596/10, MG Road, Thrissur Town.E: [email protected] T: 9349043100, Mob:- 9995290291, 9349043100W: www.relicellbattery.com E: [email protected] Bruno, Managing Director W: www.epowerindustries.com Contact Person: Mr. Joseph Davies Alappat (Proprietor)Jayachandran Industries Pvt LtdAddress: 18, Rangaswamy Road, Near Chinthamani R.S. Puram, Coimbatore Eastman Auto & Power Limited-641002. Address: C-87, Focal Point, Phase-V, Ludhiana -141010 (INDIA)M: +91 77089 02222 T: +91-161-2670935/936E: [email protected] E: [email protected], [email protected]: www.jcgroups.net Contact Person: Mr. Jagdish Rai SingalContact Person: Mr. C. Bharanikumar (MD) EnerSys India Batteries Pvt LtdAPNA Global Industries Pvt Ltd Address: Plot No. 1057 M, 1st Floor, Road No. 45, Jubilee Hills, HyderabadAddress: Sharma Colony, 22 godam, , Jaipur - 302015 500 033T: 141-6550888, 91-141-2218888; E: [email protected], Phone: +91 (40) 6704-6701M:+917727826060 W: www.enersys.comE: [email protected], [email protected] Contact Person: Arthur Moses Pereira (Director)W: www.apna-global.comContact Person: Mr. Anupam Kumar (Director) Fluidomatic Address : B-24, SECTOR-60, NOIDA(UP), (India)BHARAT BATTERY MFG. CO PVT LTD Mobile - +918286085984, (+91)- 9873334981, 82,85,86Address: H-27 Green park Extn., New Delhi – 110016 Email : [email protected], [email protected]: +91-11-2619-0742 W:www.fluidomatic.netE: [email protected] Contact Person: Mr. G. D. Sharma (Director)W: www.bharatbattery.comContact Person: Shri Biren Goswami Gem Batteries Pvt Ltd B-2/11, Mohan Co-operative Industrial Estate,Bindal & Bindal Batteries Badarpur, New Delhi – 110044Address: D 145 / 146, Hoisery Complex, Phase II Extension, Noida T: 011-40645555T: +91 120 3042145 / 46 El: [email protected]: [email protected], [email protected] W: www.gembatteries.comW: www.bindalbatteries.com Contact Person: Mr. N.M.GuptaContact Person: Pankaj Agarwal (Director)Spotlight on Indian Electronics 2018-19 | 211

Blue Chip Companies Electronic Component Traders Leading PlayersMouser Electronics India PVT Ltd Digi-Key CorporationAddress: #9 Esquire Center, Second Floor, A Wing, MG Road, Bangalore Address: 701 Brooks Avenue South, Thief River Falls, MN 56701 USA; T:560001, Karnataka, India 1-800-344-4539 or 218-681-6674T: +91 80 4265 0000; E: [email protected];E: [email protected], [email protected]; W: www.digikey.inW: www.mouser.inManjula Girish - Service & Sales ManagerRS Components and Controls (India) Ltd Elektronika Sales Pvt. Ltd.Address: B-74, Sector 60, Noida - 201301, Uttar Pradesh Address: Plot No. 31-A, Ambit Park Road, Ambattur Industrial Estate (South),T: 0120-4519106; M: 9818024220 Ambattur, Chennai - 600 058, India.E: [email protected]; [email protected] T: +91-44-26251290/26251291/26251415; F: +91-4428419833W: in.rsdelivers.com E: [email protected]; W: www.elektronikasales.comAjay Gupta - Head Sales & Mktg Sunil Hasija, MDArrow Electronics TTI Electronics AsiaAddress: # 244, ‘Fortune Summit’ 5th Floor, Ward No.174, 6th Sector, HSR Address: TTI, Bangalore, Unit 403 Sufiya Elite, 4th Floor 18 Cunningham Road,Layout, Roopena Agrahara, Bangalore – 560068, Karnataka, Bangalore 560052 IndiaT: +91 80 4135 3800; T: 91 80 4147 7191; E: [email protected]: www.arrow.com W: www.ttiasia.comSABOO COMPONENTS AND RELAYS LLP Element14 India Pvt. Ltd(Formerly Vikas Electro Sales) Address: 2nd Floor No 15 Theme House, Krishnanagar Industrial Area, OffNew Office Address: Hosur Main Road, Bangalore - 560029640 Laxmi Plaza, Laxmi Industrial Estate, SAB TV lane, Off New Link Road, T: 080-40003888; M: 9731600073;Andheri (West), Mumbai – 400053 E: [email protected] N Saboo: +91 9930966039 W: in.element14.comArun Saboo: +91 9820768303 Navin Honnavar - ManagerMandar: +91 9820845642E: [email protected] | [email protected] Edom Technology Co LtdW: www.saboocomp.com Address: Aedifice The Venue No. 9, 3rd Floor (Southern Portion) 15th Cross,Sales Warehouse - Delhi : 206 DDA Building, 2nd floor, Laxmi Nagar District 100 feet Road, 4th Phase JP Nagar, Bangalore - 560078,Centre, Laxmi Nagar, Delhi - 110092. T: 91-080-2658-3900; M: 91-9902-865-243T: 011-22456336, F: 011- 22456329. E: [email protected]; [email protected];E: [email protected]; W: www.edom.com.twContact Person: Arun Saboo - Director Ravikumar DAvnet, Inc. Rebutor Electronics Pvt.LtdContact details: No: 402, 4th Floor, Tower ‘B’, RMZ – Infinity, No 3, Old Madras Address: 199/D First Floor, 4th Main Road, HAL 3rd Stage, Jeevan BhimaRoad, Bengaluru – 560016 Nagar, Bangalore 560075T: (91 80) 4060 4000; T: +91-80-2526 1122; | F: +91-80-2526 1133 | M: +91-98454 10420F: (91 80) 4060 4060; E: [email protected]: [email protected] W: www.rebutor.comW: www.avnet.com Contact Person: S. Bhaskaran - Director Spotlight on Indian Electronics 2018-19 | 212

Micromax Energy Limited. Key Operation & Electrocomponents Blue Chip Companies21/14A, Naraina Industrial Area, Phase 2, New Pvt. Ltd.Delhi-110028 Address: Plot No.48, 1st floor, street no-3, Krishna Sourcing & SolutionsT:+911145038824 rajasthan udyog Nagar, Near Jahangirpuri Metro Address: B 97, Kalkaji, New Delhi - 110019M: +919871737444 station, GT Karnal Road, Delhi - 110033 M: 9818260638;E: [email protected] T: 011-45380073; E: [email protected];W: www.micromaxenergy.com M: 9953557477; W: ww.kssindia.bizContact Person: Vishal Pathania - Marketing Head E: [email protected]; Jagdeep Thakur - CEO W: www.keyoperation.inSiricom Technology Parveen Mahajan - Director Global DevicesAddress: No. 675, Srikrishna Prowess, 14th Cross, Address: 1487/2, Shoap No-17, Iind Floor, BMS8th Main, 2nd Phase, J. P. Nagar, Bengaluru - Shri Ram Marketing Center, Moti Cinema Compound, Bhagirath Place,560078, Karnataka Address: D-3 House No-162 Street No -7 Mahavir Delhi - 110006T: +91-80-26592222, 26592220, 26592230; Enclave T: 011-23861487; M: 9911306572M: 9845199474/ 9731204222; New Delhi - 110045 E: [email protected];E: [email protected], sales1@siricomindia. T: 011-25034853; W: www.globaldevices.incom M: 9312247334; Ravi Kumar - DirectorW: www.siricomindia.com E: [email protected];Mr. Shiv Prasad - Managing Director W: www.shrirammarketing.in Guru Electro Corporation G.S. Sharma - Managing Director Address: Stall No. 23A, Near Shop No. 416 OldSun Micro Invit Pvt. Ltd. Lajpat Rai Market, Delhi-110006Address: #2, 2nd Floor, 1568A, Bhagirath Palace, Navrang Electronics M: 9891045303, 9313912603Delhi - 110006 Address: 239, Lajpat Rai Market, Delhi 110006 E: [email protected]: 011-23862460/23865970; M: 9811079936; T: 011-23867631-23860623; W: www.guruelectro.comE: [email protected]; M: 9873847233 Pawan Saini - DirectorW: www.sunmicroinvit.com E: [email protected];OP Saini CEO Selesh Gupta - Director Max Electronics Address: 323, 3rd Floor, Gopal Market, BhagirathRamakrishna Electro Components Pvt MLS Component Solutions Pvt Ltd Palace,Ltd Address: Shop No.-146 ,Old Lajpat Rai Market, Delhi-110006;Address: B-79, Wazirpur lndustrial Area, Delhi - 110006 T: 011-30141742, M: 9999252418;Delhi-110052 T: 23865340; M: 9313250450; E: [email protected];T: +91- 11- 41423100; E: [email protected] Vimal Saini - DirectorE: [email protected], W: www.mlsdelhi.comW: www.rkelectro.com Manoj Jain - Director Semiconic Devices Pvt LtdSatish Luthra, MD Address: On Opposite Road from Metro Pillar Maruti Electronics No. 617, B 3-4, SHOP PLOT, Shankar Garden,Cosmic Devices Address: 1702/3, Shop No-206, Iind Floor, Shri Vikaspuri, New Delhi – 110018 T: 011-42804264;Address: 1702/307, 3rd Floor, Bhagirath Palace , Nath market , Bhagirath Place, Delhi - 110006 M: 9999355484, 9811115962Chandni Chowk T: 011-23866229; 9810192831; E: [email protected];Delhi - 110006 E: [email protected] W: www.semiconic.comT: 23860444; M: 9313866166; J. K. Agarwal - Director Sandeep Soni/Ashish Talwar - DirectorE: [email protected];W: www.cosmicdevices.in Millennium Semiconductors BP IMPEX PVT. LTD.Vikash Minocha - Director Address: 17,18,19; 2nd floor, Mahalaxshmi Address: 205, 9/2, East Patel Nagar, New Delhi - Heights, Mumbai-Pune Road,Pimpri, Pune - 110008 (India)Khandelwal Electronics 411018. Maharashtra (India) Sales Off.: 1st Floor, 12/4, East Patel Nagar, NewAddress: 1701, Bhagirath Palace, Delhi - 110006 T: +91-20-27484800, 27484900/274845000; Delhi - 110008T: 011-23861667; M: 9899627631; F: +91-20-27484800; T: 011-25810057; M: +91-9910010037, +91-E: [email protected] E: [email protected] 9810526527W: www.khandelwalelectronics.com W: www.millenniumsemi.com E-mail: [email protected]; bpimpexpvtltd@Arvind Gupta - Director Haresh Abhichandani, MD gmail.com W: www.bpimpexindia.com Contact Person: K Kohli - Director National Controlling Equipments Industries Address: 65, Laxmi Vihar, Jandli, Ambala City- 134003 Haryana (India) T: 0171-2801711, M: 9416020078 E: [email protected], [email protected] W: www.nacei.com Contact Person: Amarjit Singh, Director Spotlight on Indian Electronics 2018-19 | 213

Blue Chip CompaniesKPH Technologies Pvt. Ltd Continental Device India Limited Sumitron Exports Pvt. LtdAddress: 201& 245 Old Rajpat Rai Market, Address: C-120, Naraina Indl. Area, New Address: No. F19/1,Sector 8, Near M2K CinemaChandni Chowk, Delhi-110006 Delhi-110028 Hall, Rohini,T: 011-23868178, 23865575 T: 011-41411112; M: 9650611599; Delhi - 110085M: 9811179738, 9811173136 E: [email protected]; T: +91-11-43824444 / 41410631E: [email protected] W: www.cdil.com E: [email protected], [email protected];W: www.kphstore.com Prithvideep Singh - Director Strategic Mkt. W: www.sumitron.comContact Person: Sunil Mahajan, Director Mr. Sumit Jain, Director WPG India Electronics Pvt LtdSaini Electronics Address: 1M-504, Hennur Main Road, Deki ElectronicsAddress: 1st, Floor Pushpdant Niwash, 3, Chunam H.R.B.R.Layout 3rd Block (Next to State Bank Of Address: B-20, Sector 58, Noida - 201301Lane, Lamington Road, Mumbai - 400007, Mysore), Bangalore-560043, Karnataka T: 120-2585457/58;Maharastra T: +91-80-71444450; E: [email protected];T: 022-33156116, M: 9820864996 W: www.wpgholdings.com W: www.dekielectronics.comE: [email protected]; Mr Vinod Sharma - Managing DirectorW: www.sainielectronics.in Electromark Devices (Bombay) LtdK.L. Saini - Director Address: 304, 33A, Lotus House, New Marine Rabyte Electronics Pvt Ltd Lines, Address: F-32, Sector-11, Noida, Uttar PradeshNav Bharat Enterprises Pvt. Ltd. Mumbai - 400020, Maharastra 201301Address: 109,Old Lajpat Rai Market, Delhi - T: +91-22-22034545; T: 91-120-474-6000;110006 [email protected]; E: [email protected];T: 011-23861914,23863630; M: 9810022539 W: www.electromarkindia.com W: www.rabyte.comE: [email protected] Mahavir Sheth, MD Rajiv Batra, MDNarinder Aggarwal - Director Future Electronics Singodia ElectronicsMAXGTECH Address: The OAK - Kalyani Platina, 5th Floor, Address: F-4, Akarshan Bhawan, 23, Ansari Road,Address: 4782/2, 23, Ansari Road, Daryaganj, Survey # 129/4, Kundalahalli Village, K.R Puram, Darya Ganj, New Delhi - 110002New Delhi - 110002 Hobli, Bangalore - 560066 T: 2325 6625, 41563008/9, 47000781/2/3/4; M:T: 011-41069994; M: 9899669994; T: +91-80-4331 8100; 09968380031E: [email protected]; [email protected], E: [email protected]; E: [email protected];W: www.maxgtech.com W: www.futureelectronics.com W: www.singodia.comGagan Jain - Managing Director G D Saini - Managing Director Integrated Industrial ElectronicsDDS International Address: Building # 24, 2nd Floor, New Subzi Perfect RadiosAddress: Shop No. 259, Old Lajpat Rai Market, Mandi, Sector 16, Faridabad - 121002, Haryana Contact Details: Shop No. 866, Old Lajpat RaiDelhi - 110006 T: +91-9810800787; Market, Delhi – 110006T: +91-9818082777, +91-9958607248 E: [email protected]; [email protected] T: +91 1123860811, 23865955E: [email protected]; W: www.iielectronic.com E: [email protected]: www.ddsinternational.in W: www.perfectradios.comAshish Sachdeva - Director LWI Electronics Inc Address: 62, 14th Cross, I Block, R.T. Nagar, SM Electronic Technologies Pvt. Ltd.Isha Agencies Bangalore - 560032, Address: #2, 8th Block, Nagarbhavi 2nd Stage,Address: 305 Aggarwal Tower, Pocket O & P, T: +91-80-23530578, 23540578; Malagala, Bengaluru-560072Dilshad Garden, E: [email protected]; W: www.livewireinfo. KarnatakaDelhi -110095; T: 011-43089627; M: 9810882677; com T: +91-80-6673 4567E: [email protected]; E: [email protected];W: www.ishaagencies.net Everest Electronics W: www.smetgroup.comArvind K. Sehgal - CEO Address: 644, Lajpat Rai Market, Chandni Chowk, Mr. Manjunath - Managing Director New Delhi - 110006Madhu Trading Point T: +91-9871640314; E: [email protected]: C-91, Main Market, Khajuri Khas Extn., Aman Jain - DirectorDelhi - 110094T: 011-22964345/46/47; M: 9971986260; Precious Electronics Pvt LtdE: [email protected]; Address: 52-c, Chotani Building, Proctor Road,W: www.chhippointindia.com, www. Grant Road, E, Grant Road, Mumbai - 400007,mtpelectrosales.com MaharashtraDhruv - CEO T: +91-22-2386 7459/23860085/23869473/ 61216300, E: [email protected], W: www.preciouselectronics.com Spotlight on Indian Electronics 2018-19 | 214

Blue Chip CompaniesShavison Electronics Pvt. Ltd. Deepak Overseas Excel Eltech (India)Pvt LtdAddress: Unit No: G-5, B Wing, Plot K-3, Udyog Address: 4-3-234/1, Giriraj Lane, Bank Street, Koti, Contact Detaisl: #16 Meanee Avenue Tank Road,Bhavan No: 2, Anand Nagar MIDC, Ambernath (E) Hyderabad - 500095, Telangana Near Lakeside Hospital, Bangalore - 560 042Maharashtra 421506 M: 9848787697; T: +91-80-2557-3582/83T: 8983253188, 251- 2620417/ 2620427, E: [email protected], info@ E: [email protected] deepakoverseas.in W: www.exceleltechindia.comE: [email protected], [email protected] Rakesh Saini - DirectorW: www.shavison.com J. P. Electronic Devices (India) Pvt LtdMr. Milind Godambe Emaar Impex Pvt. Ltd. Contact Details: JP House, 16/F, Samrat Silk Address: 16-A, Hanuman Terrace, Lamington Mills Compound, LBS Marg, Vikhroli (W),Semtronics Micro Systems Pvt. Ltd. Road, Tara Temple Ln, Grant Road East, Grant Rd, Mumbai-400079Address: #35, Ist Main Road, Gandhinagar, Mumbai - 400007 T: +91-22-25785099Bangalore - 560009, Karnataka E: [email protected] F: +91-22-67969976T: 080 41242093; M: 9980169172 Kalpesh Jain, Director E: [email protected]: [email protected] T: +91-22-23801086; F: +91-22-23894197 W: www.jpegroup.comW: semtronicsmicrosystems.com W: www.emaarindia.comMr. Manjunath - Managing Director & CEO Network Electro Components Cirkit Electro Components Pvt Ltd Contact Details: Antop Hill Warehousing Complex,Tektronics Address: 54-b, Proctor Road, ‘drug House’ B007, Ground Floor, Near Barkat Ali Naka , VadalaAddress: Shop No. 113-114, Ist Floor, 1933/II, Building, Near Parijat Building, Opposite Lanington (E). Mumbai 400037Arghara, Bhai Mati Dass Chowk, Delhi - 110006 Road, Proctor Road, Mumbai - 400007 T: 022-24193500 (100 Lines).M: +91-11-23865439; 9811515424, 7747018801; T: 022-23877777/23800888; E: [email protected]: [email protected]; E: [email protected], [email protected], W: www.network-india.comW: www.tektronics1.com W: www.cirkitelectro.comSunny Dhawan - Director Gulab Chand Hariya, director RS Semiconductors Pvt Ltd Contact Details: Office No. 220, PKT-III, Phase-II,Formax Electronics Pvt Ltd. Kirti Enterprises Shaheed Bhagat Singh Apartment, Sector 14,Address: # 24, 2 nd floor, 1481-1486, Gopal Address: 1710, Shop No. 13, IInd Floor, Bhagirath Dwarka, Dwarka Sector 14, New Delhi-110078Market, Bhagirath Place, Delhi - 110006 Palace, T: +91 65493725E: [email protected]; Delhi - 110006 E: [email protected] W: www.W: www.formaxindia.com M: 9718263154, 7053919529 rssemiconductor.inManoj saini - Director E: [email protected] Resistronics Pvt. Ltd. Takiar Overseas (P) Ltd Rajguru Electronics (I) Pvt. LtdAddress: Gate No. 61, Plot No. 1 & 2 Shindewadi, Contact Details: B/45B,Ashok Vihar, Phase-2, Contact Details: 3F, 3rd Floor, Plot No.399, ManekTal. Bhor, Delhi-110052 Chamber, Dr. Dadasaheb Bhadkamkar Marg,Pune - 412205, Maharashtra T: +91-11-2713 1200, 2713 1500 Girgaon, Mumbai-400004T: 08805001295, 09975596459 E: [email protected] T: +91 022 40168411/40138411E: [email protected] W: www.takiar.in E: [email protected] Khadilkr - Director W: www.rajguruelectroni.com Componix IndiaAdytronics Devices Contact Details: D-2, 2nd Floor, Vijay Chambers, Unisem Electronics Pvt LtdAddress: 201 , JMD House , 4378,/4b,Murari 1140 Tribhuvan Road, Mumbai -400 004 Address: 447-A, 17th G Main, 6th Block,Lal Street , Ansari Road , Daryaganj, NewDelhi T: +91-22-23827771, +91-22-23827772 Koramangala, Bengaluru- 560095-110002 E: [email protected] T: +91 80 41131829E: vinita [email protected] W: www.componixindia.com E: [email protected] Gupta - Diorector W: www.unisemholdings.com Essen Deinki Pvt Ltd Contact Person: CK Unnikrishnan, DirectorAnand Industrial Components Contact Details: 22, Industrial Area, Phase - II,Address: 11, Mody House , Padamji Street, Opp. Chandigarh – 160002Vijay Chambers, Grant Road (East) Mumbai - T: +91 0172- 2653111~115400004, Maharastra E: [email protected]: 022-23882783, M: 9322231143; W: www.essendeinki.comE: [email protected], [email protected] Bhansali - Director Excelpoint Systems (India) Pvt Ltd Contact Details: No. 304 - 306, 2nd Floor, Oxford Towers, Old Airport Road, Bangalore - 560008 T: +91 80 4942 4311 E: [email protected] W: www.excelpoint.com Spotlight on Indian Electronics 2018-19 | 215

Blue Chip Companies Chemicals & Consumables Leading PlayersHK Wentworth India Pvt Ltd Hybrid Metals Pvt LtdAddress: No: 73,, 6th Main Rd, Shushruti Nagar, Peenya, Address: “Hybrid Towers”, ( 3rd Floor), No.5AC-101, 2nd Main Road, 3rdBengaluru - 560058, Karnataka Block, HRBR Layout, Kalyan Nagar Post,T: 080 3232 2422; Bangalore - 560 043, MaharastraE-mail: [email protected] T: 080-25441254/25441255/25441256;W: www.hkw.co.uk F: 080-25441259.Padmanabha Shakthivelu - Electrolube Sales Manager - India E: [email protected]; W: www.hybridmetals.comJyoti Ceramic Industries Pvt. Ltd.Address: C-21, NICE, Satpur, Nashik - 422007, Maharastra Chembond Chemicals LimitedT: +91 253 2350120/338/729, 2351251, 2365766 Address: Chembond Centre, EL-71 Mahape MIDC,E: [email protected]; Navi Mumbai 400 710, India.W: www.jyoticeramic.com T: +91 22 39213000, 22 27681294 E: [email protected] India Private LimitedAddress: B-4, Greater Kailash Enclave-II, Greater Kailash, Kanoria Chemicals & Industries LimitedNew Delhi, Delhi 110048 Address: Indra Prakash, 21 Barakhamba Road, New Delhi - 110 001T: 011 2922 9210; T: 91-11-43579200E: [email protected] | W: www.nordson.com F: +91-11-23717203, 23355824 E: [email protected]; W: www.kanoriachem.comSaru Smelting Pvt. Ltd. Henkel Adhesive Technologies India Private LimitedAddress: Saru Nagar, Sardhana Road, Meerut - 250 001 Address: Kesar Solitaire, 10th Floor, Plot No. 5, Sector - 19 Palm Beach Road,T: + 91-121-2556051/ 2555449 Sanpada Maharashtra Navi Mumbai - 400705M: + 91-9897888151/9897838358 T: +91-22-392-966-00/01F: + 91-121-2555969 F: +91- 22- 392-966-02E: [email protected]: www.sarumetals.com Henkel India Address: No.1, Airport Service Road, Domlur Layout,CONINS PUNE Bangalore-560 071Address: 885/1/4/, Lane No.-6, Shivneri Building, First Floor, Opposite Hotel T: +91 80 2535 7771Panchavati Gaurav, Bhandarkar Road, Deccan Gymkhana, W: www.henkel.inPune- 411004, MaharashtraM: +91-9545521323;T: +91-22-25672299E: [email protected];W: www.sme.in/coninsDrive TechnologiesAddress: No. 203, Aqua House, Opposite Chaitanya Hospital, Parvati, Sinhagad Rd,Pune, Maharashtra 411030T: 093722 49548;E: [email protected] | W: www.drivetech.in Spotlight on Indian Electronics 2018-19 | 216

Blue Chip Companies EMS & ODM Leading PlayersJabil Circuit India Pvt Ltd Rangsons Electronics Pvt Ltd Amara Raja Electronics LtdServices provided: Electronic manufacturing Services provided: ESDM, PCB assembly Services provided: Contract manufacturing, EMSsolutions Address: Plot No. 347 - D1 & D2, Kiadb, and manufacture of HUPS and invertersAddress: B-26, MIDC Industrial Area, Ranjangoan, Electronics City, Hebbal Industrial Area, Mysuru - Address: Riaz Garden, VI Floor, 12 KodambakkamTaluka Shirur, Dist Pune - 412220, Maharashtra, 570016, Karnataka High Road, Chennai-600 034, Tamil NaduIndia T: +91-821-4820000 Tel: +91-44-28213270/42910700, Fax: +91-44-T: 022-66425602; E: [email protected]; 28284821E: [email protected]; W: www.rangsons.com E: [email protected],W: www.jabil.com Pavan G Ranga, CEO W: www.amararajaelectronics.comAnoop Kumar Mehrotra, Country Manager Ramana Prasad Alam, CEO PG Electroplast LtdDixon Technologies (India) Pvt Ltd Services provided: EMS, plastic moulding and tool SGV IndustriesServices provided: Product design, sourcing, room Address: C-146, IInd Floor, Lajpat Nagar - 1, Newmanufacturing, assembling, logistics and reverse Address: 4/2 To 4/6 Upsidc Industrial Area, Upsidc Delhi - 110024logistics Site B, Surajpur, Greater Noida, Uttar Pradesh T: +91-11-46604910Address: B-14/15, Phase-II, Noida, Uttar Pradesh 201306 E: [email protected] T: +91-9810290272; E: [email protected]; W: www. W: www.sgvindustries.comT: 0120–4737200; pgel.in | Promod Gupta, CMD Jagdeep Thakur - CEOE: [email protected], [email protected]; Centum Electronics Ltd Allnyx Technologies LLPW: www.dixoninfo.com Services provided: Customised product design Survey No. 416, Next to Care Group, At & POSunil Vachani, CMD and development, EMS and turnkey solutions Dabhasa, Ta. Padra, Dist. Vadodara-391440 Address: No.44, KHB Industrial Area, Yelahanka T: +91 2662 244170SFO Technologies Pvt Ltd New Town, F: +91 265 235 5468Services provided: Design, engineering, software Bangalore - 560106, Karnataka E: [email protected], EMS and PCB assembly T: +91 80 41436000; W: www.allnyx.comAddress: SFO Technologies, Plot No. 2, Cochin E: [email protected],Special Economic Zone, Kakkanad, Cochin - 682 W: www.centumindia.com Astra Microwave Products Ltd037, Kerala, INDIA Apparao Mallavarapu, CMD ASTRA Towers, Survey No. 12(P), Kothaguda Post,T: +91-9895127004, E: Thomas.john@nestgroup. Kondapur, Hitechcity, Hyderabad 500084net, W: www.nestgroup.net Kaynes Technology India Pvt Ltd T: 040-30618000/01N Jehangir, vice chairman and managing director Services provided: Design services, turnkey E: [email protected], [email protected] manufacturing, etc W: www.astramwp.comElin Electronics Ltd Address: No. 23- 25, Belagola Food IndustrialServices provided: EMS for audio systems, Area, Metagalli, Bergen Associates Pvt Ltdloudspeakers, moulded (injection) plastic and Mysuru - 570016, Karnataka Bergen Group of Companies, 311, Time Tower, MGrubber components, electronic ballasts, LED torch T: +91-0821-4280270, +91-0821-2582595; Road, Sector-28, Gurugram-122002lights, and LED lighting and fixtures E: [email protected], T : +91 0124 4986 400-415Address: Elin House, 4771, 23, Bharat Ram Rd, W: www.kaynestechnology.net F : +91 0124 4986 405Daryaganj, Ramesh Kannan, CMD E: [email protected] Delhi - 110002 W: www.bergengroupindia.comT: 011-2328 9340/2326 6399, 9810370198; SGS Tekniks Manufacturing Pvt LtdE: [email protected]; Services provided: EMS Bhagyashree IndustriesW: www.elinindia.com Address: A- 3, Info City, Sector- 34, Gurgaon, Plot no 26/F/1, Survey no 354, TSIIC Toopran,M L Sethia, managing director Haryana 122001 Muppireddypally Village, Manoharabad Mandal, T: 0124-4628800; Medak 502334 E: [email protected]; T: 9346115989, 9391316823, 9393331151 W: www.sgst.com E: [email protected], rohan@ Sanjiv Narayan, MD bhagyashreeindustries.com W: www.bhagyashreeindustries.com Spotlight on Indian Electronics 2018-19 | 217

Blue Chip Companies Film Electronics Pvt Ltd 192, Delhi Road, Opp. Roadways Bus Stand, Meerut Cantt-250001Brand Liason India Pvt Ltd T: +91-121-2661106 / 07110, First Floor, Sharma Complex, Guru Nanak Pura, Laxmi Nagar, Delhi – F: +91-121-2661110110092 E: [email protected]: +91- 9152501243 W: www.filmelectronics.inE: [email protected], [email protected], [email protected] Flextronics Technologies India Pvt LtdW: www.brandliaison.in Plot No 3 Phase II, Sipcot Industrial Park, Sriperumbudur, Kanchipuram – 602105Continental Device India Pvt Ltd T: 044 67105558C-120 Naraina Industrial Area – I, New Delhi - 110028 E: [email protected]: (+91) 11 4141 1112 W: www.felxtronics.comE: [email protected]: www.cdil.com Futuristic LED Pvt Ltd SDF Block G-13/14, Noida Special Economic Zone (NSEZ), Phase II, NoidaCosonic Components Pvt Ltd 201 305New No.5, “KALYANI”, Cross Street, Srinagar Colony, Saidapet, Chennai T: 0120-6277700600015 F: 0120-6277766T: +91-44-42119733 E: [email protected]: +91-44-22355596 W: www.cyfuture.comE: [email protected]: www.cosonic.in G.M. Enterprises #805, 8th Floor, Dev Corpora, Off. Service Road, Next to Cadbury FlyoverCubix Control Systems Pvt Ltd Junction, Khopat, Thane (West), Mumbai – 400 601F-19, Sector-11, Noida-201301, Uttar Pradesh,India T: 022-41226464/65/66/67T: 0120 – 4335714, +91- 8444457077 E: [email protected], [email protected]: [email protected] W: www.gmeindia.comW: www.cubixcontrolsystems.com Genus Electrotech LtdDigital Circuits Pvt Ltd 43, Galpadar Road, Ta. Anjar, Dist. Kutch, Gandhidham-370110Plot # 60, Doddakalsandra, Kanakapura Main Road, Bangalore - 560 062 T: +91 99789 59735, +91-11-47114800,T: 0091-80-22560994 to 22560997 F: +91-2836-240792E: [email protected] E: [email protected]: http://www.digitalcircuits.in W: www.genuselectrotech.co.inE-durables Green Pearl Electronics Pvt Ltd61 B – C, Udyog Vihar, Surajpur Kasna Road, Greater Noida Survey No 211/1, East Potheri Village, Kattangulathur, Chennai 603203Manufacturing Locations T: 044 27402857/59E-Durables C -5, UPSIDC Industrial Area, Selaqui, Dehradun (Uttarakhand). E: [email protected], [email protected] C -6 & 7, UPSIDC Industrial Area, Selaqui, Dehradun (Uttarakhand). W: www.greenpearlelectronics.comT: +91-120-2569078/79.E: [email protected] Hical Technologies Pvt LtdW: http://www.edurables.com 46 & 47, Phase 2, Electronics City, Hosur Road, Bangalore - 560 100 T: +91 73378 32717Elico Ltd E: [email protected], [email protected], A.P.I.E., Sanathnagar, Hyderabad 500 018 W: www.hical-technologies.comT: +91 40 23770134F: +91 40 23771639 Higher Industries India Pvt LtdE: [email protected] A-59, Second Floor, New Friends Colony, New Delhi New Delhi 110025W: http://www.elico.co E: [email protected] Technologies Pvt Ltd Intelux Electronics Pvt. LtdC-3 & 38, Sector 59, Noida - 201301, Uttar Pradesh, India Unit 2, Electronic Co-Op Estate, Pune-Satara Road, Pune – 411009T: +91-120-4359519, +91-9910039522, +91-8130596868 T: +91-20-24223734/82/83,W: www.erdglobal.com F: +91-20-24221258, E: [email protected] Die Casting Pvt Ltd W: www.inteluxindia.com181/1, A.J.C. Bose Road, Samilton Chambers, Kolkata - 700014T: 9133 – 2284 4353 / 63F: 9133 – 22844354E: [email protected], W: http://www.eskocast.comSpotlight on Indian Electronics 2018-19 | 218

ITI Ltd Blue Chip CompaniesITI Limited, Dooravaninagar, Bangalore-560016T: 080-25651340, 080-28503902 Pulraj Electronics Pvt LtdF: 080-25650400 D -28/14, Behind Sharayu Hyundai Showroom, TTC, MIDC, Turbhe, NaviE: [email protected] Mumbai, IndiaW: www.itiltd-india.com T: +91-22-6511 5071/ 2768 5069. E: [email protected] India Pvt Ltd W: www.pulraj.comPlot No. 11A, SIPCOT Industrial Complex, Ranipet 632403T: (04172) 304600 Sahasra Electronics Pvt LtdE: [email protected] 129-G, NSEZ, Noida 201305W: www.kostal.com T: 0120 2462782 E: [email protected] Electric India Pvt Ltd W: www.sahasraelectronics.com359 B, Shiv Chintan, Nalasopara West, Palghar - 401203, Near VeterinaryDispensary, Nirmal SLN Technologies Pvt. LtdT: +91- 9552597464 No. 1, Horizon Building, 3rd Floor, Pai Layout Old Madras Road,E: [email protected], [email protected] Dooravaninagar Post, Bengaluru-560 016W: www.kyoritsuelectric.com T: +91-80-4171 8881, 4171 8882 E: [email protected] Systems and Services Ltd W: www.slntechnologies.com173, Developed Plots Estate, Perungudi, Chennai – 600 096T: +91 44 2496 1903/04 Sohamsaa Systems Pvt LtdF: +91 44 2496 0488 530/A, Sri Ram Plaza, 19th Main, 3rd Sector, HSR Layout, Bangalore 560102E: [email protected] T: +91 80 65650044W: www.melss.com F: +91 98808 39333 E: [email protected] Auto and Electronics Ltd W: www.sohamsaa.comPlot No. 7, Sector 3, IMT, Manesar 122 050T: +91 124 4177200, +91 1244177250 Statcon Power Controls LtdE: [email protected], [email protected] A-34, Sector-59 GB Nagar, Noida 201301W: www.napino.com T: 0120 3851760 E: [email protected] Bharat Vanijya Ltd W: www.stat-con.comLink House 3 Bahadur Shahzafar Marg New Delhi Dl 110002T: 011- 23316037 Syrma Technology Pvt LtdE: [email protected], [email protected] Plot B27, Phase II, Zone B, MEPZ-SEZ, Sanatorium, Tambaram, ChennaiW: www.navbharatvanijya.com 600045 T: +91.44.7172.8600 (Main), +91.44.7172.8601 (Sales),Nextgen Manufacturing Services Pvt Ltd E: [email protected], Ecotech III, Udyog Kendra II, Greater Noida-201308 W: www.syrmatech.comT: (+91)-120- 2397166, (+91) 8447694428, (+91) 9958294635E: [email protected] Vital Electronics and Manufacturing CoW: www.nextgenmspl.com EL 104 Electronic Zone, TTC Industrial Area MIDC, Mahape, Navi Mumbai-400710, Maharashtra, India.NTL Electronics India Ltd T: +91-2227610218 / +91-2227610223 / +91-2220135026/+91-2227685796A-111, Sector - 65, Noida - 201 301 F: +91-2227613097T: +91-120-400 8888 E: [email protected]: +91-120-428 1822 W: www.vitalelectronics.co.inE: [email protected]: www.ntlelectronics.com Foxconn Technology India Pvt Ltd Products manufactured: Connectors, PC components, etcNuline Technologies Address: SIPCOT Hitech, Sez SIDCO Industrial Park, Phase 2, Chennai-2711, 2nd Main HAL, 3rd Stage Bengaluru 560075 Bangalore National Highway, Sriperumbudur, Kanchipuram-602106T: (080) 25287888 T: 080-71742911;E: [email protected] W: www.foxconn.comW: www.nulineindia.com Ashok Kumar, Assistant EngineerSpotlight on Indian Electronics 2018-19 | 219

Blue Chip Companies Electronic Design & Simulation Leading PlayersSimulation India Sequence Design India Private Ltd. Ticket Design Pvt LtdAddress: 101, Triveni Complex, E-10-12 Jawahar A subsidiary of Apache Design Solutions, Inc. Address: Design Studio, 87/20, Plot 25, Gate 1,Park, Vikas Marg, Lakshmi Nagar, Delhi - 110092 Address: Windsor IT Park, Plot # A-1, 5th Floor Near Ganaraj Mangal Karyalaya, Baner MahalungeT: 011-52487219, 9810137771; F: 011-22043632 Tower ‘A’ (Unit # 3), Sector 125, Noida-201301, Rd, Veerbhadra Nagar, Baner,E: [email protected], support@ Uttar Pradesh - INDIA Pune - 411045, Maharashtrasimulationindia.com E: [email protected] E: [email protected]; W: www.W: simulationindia.com ticketdesign.com HOYT Engineering Solutions Pvt. LtdDexcel Electronics Designs Pvt. Ltd. Address: H’ Block Plot No. A -112, MIDC Pimpri, Tata Elxsi LimitedAddress: Level 3, Maruthi Towers, # 138 Airport Pune - 411018, Maharashtra, India Address: ITPB Road, Whitefield, BangaloreRoad, Kodihalli, Bangalore - 560 008, Karnataka T: +91-20-27488381; F: +91-20-27488382 560048, KarnatakaT: +91-80-41914921 / 22; F: +91 80 2521 6791 E: [email protected]; W: www.hoytindia.com T: +91-80-22979123, 28411474;E: [email protected]; W: dexceldesigns. E: [email protected]; W: www.tataelxsi.comcom Kernex Microsystems (India) LtdMr. P S Walia Address: THRUSHNA”, Plot # 7, Software Units SGS Tekniks Manufacturing Pvt. Ltd. Layout Infocity, Madhapur, Hyderabad - 500 081, Address: A- 3, Info City, Sector- 34, Gurgaon-Cadence Design Systems India Pvt Ltd. Telengana 122001 Haryana,Address: Plot 57A, B & C, NSEZ Noida Special T: +91-40-23113192-94; F: +91-40-23114187 T: +91-124–4628800, 4628821;Economic Zone, E: [email protected]; W: www.kernex.in E: [email protected], W: www.sgst.comNoida - 201305, Uttar PardeshT: +91-120-3984000; F: +91-120-3984203, Sasken Communication Technologies Tevatron Technologies Pvt. Ltd3984332 Ltd.E: [email protected]; W: www.cadence.com Address: F-7, Sector-3 ( 2 Minutes Walk-In from Address: 139/25, Ring Road, Domlur, Bengaluru Sector 16 Noida Metro Station), Noida – 201301,Prodigy Technovations Pvt. Ltd. 560 071, IndiaAddress: #294, 3rd Floor, 7th Cross, 7th Main, T: +91-120-4565405;BTM II Stage, T: +91-80-66943000; F: + 91-80-39813329Bangalore – 560076, India E: [email protected]; W: www.tevatrontech.T: +91 (804) 212-6100; E: [email protected]; W: www.sasken.com comE: [email protected];W: www.prodigytechno.com TronicsZone Mentor Graphic Pvt. Ltd. Address: #75, 1st Floor, 1st Cross, Chiranjeevi Address: RMZ Eco World, Unit No. 701 to 704ELDAAS Technologies Pvt. Ltd. Layout,Kempapura, Hebbal, Bangalore 560024, Campus 8B, 7th Floor, Sarjapur-Marathalli OuterAddress: 324, 2nd Floor, 1st Cross,Lal Bahadur INDIA Ring Road Devarabeesanahalli,Nagar, B.Channasandra, Kasturinagar, Bangalore, T/F: +91-80-23330797; E: design@tronicszone. Bangalore - 560103Karnataka, India com, W: www.tronicszone.com T: +91-80-6762 4000; F: +91 80 6762 4004T: +91-80-42009090; E: [email protected]; W:E: [email protected]; Crystaline Infotek Pvt. Ltd.W: www.eldaas.com Address: Crystal House’, 235 Navi Peth, Pune - Visionics India 411030 India., T: 020 24339634/35; Address: Visionics India Pvt. Ltd., Technopark,Centum Electronics Limited E: [email protected]; W: crystalindia.com Trivandrum - 695 581.Address: No.44, KHB Industrial Area, Yelahanka T: +91 471 2700673.New Town, Argus Systems E: Email Id: [email protected]; W: www.Bangalore – 560106, Karnataka Address: #349, 8th A Main, 3rd Cross, 4th visionics.co.inT:+91 (0) 8041436000; F:+91(0) 8041436005 Block,Koramangala, Bengaluru -560034,E: [email protected]; Karnataka eInfochips LtdW: www.centumindia.com T: +91-7093535378; +91-9949355209; W: www. Address: 11/A-B, Chandra Colony, Behind Cargo sysargus.com Motors, Off C.G. Road, Ellisbridge, Ahmedabad 380006 Mansi Engineering T: +91-79-67770000/01, +91-79-26563705 Address: B1, Sharad Complex, Opp Tubewell, E: [email protected]; W: www.einfochips.com Gulbai Tekra, Ahmedabad - 380006, Gujurat, INDIA T: +91-79-26307134, +91-79-26302446; W: mansiengineering.com Spotlight on Indian Electronics 2018-19 | 220

Blue Chip Companies Embedded Leading PlayersRhydo Technologies Pvt Ltd 560066, Karnataka ICON Design Automation Pvt LtdAddress: Golden Plaza,Opp.Mymoon Theatre, M: 9845850384; T: 8041694200; W: www.embitel. Address: #510, 7th Cross, 10th Main, HAL 3rdChittoor Road, Ernakulam - 682018, Kerala, India, com Stage,T: +91-484-2370 575/6/9; M: 9846044503; Contact Person :Sheshikanth Gontumukkala Bangalore – 560 075F: +91-484-2370-575; T: +91-80-25273997E: [email protected]; W: www.rhydo.com Meltronics Systemtech Pvt Ltd E: [email protected]; W: www.icon-dapl.com Address: #82, ‘A’ Block, 1st Main, 4th Cross,Captronic Systems Pvt. Ltd Bangalore -560 037 Tata Elxsi LimitedAddress: 3, Victorian Meadows, Airport-Varthur T: +91-80-28525400/01/02 Address: ITPB Road, Whitefield, BangaloreRoad, Munekolalu, Marathalli (PO), Bengaluru - E: [email protected]; meltronics@ 560048, India560037, Karnataka meltronicsgroup.com T: +91 80 2297 9123, +91 80 2841 1474T: 080 - 32515623, 080 - 40373900 W: www.meltronicsgroup.com E: [email protected]; W: www.tataelxsi.comE: [email protected]; W: www. Contact Person :Sankarcaptronicsystems.com Electro Systems Associates Pvt. Ltd System Controls Technology Solutions Address: 4215, J.K.Complex, First Main Road,Semtronics Microsystems Pvt Ltd Pvt. Ltd. Subramanyanagar, Bangalore - 560 021Address: No.35, 1st Main Road, Gandhi Nagar, Address: 119, 3rd Main, East of NGEF Layout, T: 080-23577924,23579165Opposite To Commercial Tax Office, Bangalore - Kasturi Nagar, Bengaluru-560043 E: [email protected]; W: www.esaindia.com560009, Karnataka T: +91 80 4082 0400 Mr. M. S. Vijendra Kumar, General Manager (Sales)T: +91- 80 - 41242093; E: [email protected];E: [email protected]; W: system-controls.com IndrionW: www.semtronicsmicrosystem Address: #145, 4th Cross. 7th Main, JP Nagar 3rd Soft Jin Technologies Pvt Ltd Phase, Bangalore - 560078, KarnatakaKontron Technology India Private Address: Unit No. 102, Mobius Tower, I Floor, SJR E: [email protected]; W: www.indrion.co.inLimited I - Park, EPIP, Whitefield, Bangalore - 560066,Address: 425, 3rd Floor, 2nd Main Road, Kashthuri Karnataka Acorn Embedded Systems PrivateNagar, East Of NGEF, Bengaluru - 560043, T: +91-80-41779999 25234641 25234642 LimitedKarnataka, India Address: LSPC Mansion, 3-201, HIG, HUDA,T: 080-40831000; E: [email protected]; W: www. Quasar Innovations Pvt. Ltd Mayuri Nagar, Lane Opp. Lakshmi SBI Homes,kontron.in Address: 642, 1st floor, Sheba Presidency, 80 ft Miyapur, Near Nizampet, Hyderabad road, 4th block, Koramangala Bengaluru - 560066, T: +91-40-65793268; M: +91-9866319180Embedded Systems Solutions Karnataka F: +91-40-30995285Address: #S 606, 6th floor, World Trade Center, T: +91-80- 41119235 41119236 E: [email protected];Brigade Gateway, 26/1, Dr. Rajkumar Road, E: [email protected]; W: www. W: www.acornembeddedsystems.comMalleshwaram(W) Bangalore - 560055, Karnataka quasarinnovations.comT: 080-67648888; M: 9845083528; F: 080- iMicro System67648841 | E: [email protected]; Prodigy Labs Pvt. Ltd. Address: #22, 2nd Floor, New Thippasandra MainW: www.embeddedindia.com Address: #1403,13th main, 12th B cross, WOC Road, Opposite to Thippasandra Post Office, 2nd stage, mahalakshmipuram Bangalore - Bangalore – 560075Toradex 560086 T: +91-80-25280397, 32927633; F: +91-80-Address: Third Floor, LXY Aura, 99/D, KHB Colony, T: +91-80-23598938; W: www.prodigylabs.com 25280369Koramangala, 5th Block, Bangalore 560095 Vidya Srinivas, CEO E: [email protected]; W: www.imicrosystem.M: 8041119096; T: 08041119096; comE: [email protected]; W: www.toradex.com Innoviti Embedded Solutions Pvt LtdContact Person :Amutha Lakshmi Address: 41, Sai Baba Mandir Road, 3rd Main, 5th Redpine Signals, Inc. Cross, Cambridge Layout Bangalore - 560017, Address: 9th Floor, 2B Maximus, MindspaceEmbitel technologies (India) Pvt. Ltd. Karnataka Cyberabad, Survey # 64 (Part) APIIC SoftwareAddress: Unit No:208 to 216, 2nd Floor, Delta T: 080-40701400,9620131453, Layout, Madhapur, Hyderabad - 500 081Block, Sigma Soft Tech Park (SSTP), Varthur- E: [email protected]; W: www.innoviti.com T+91-40-39351000Hobli, (Whitefield Main Road) Near Forum Value E: [email protected]; W: www.Mall, Ramagondanahalli, Whitefield, Bengaluru - redpinesignals.com Spotlight on Indian Electronics 2018-19 | 221

Blue Chip Companies Power Electronics Leading PlayersInfineon Technologies India Pvt Ltd Mornsun Guangzhou Science & TOSHIBA Semiconductor & Storage Technology Co., Ltd. ProductsAddress: 11 Mahatma Gandhi (MG) Road, Address: 3rd Floor, Building No. 10, Tower - B,Bengaluru - 560 001 Address: No.5, Kehui St.1, Kehui Development Phase - II, DLF Cyber City, Gurgaon-122 002,T: +-1-80-39271000; Center, Science Ave.,Guangzhou Science City, HaryanaE: [email protected] Luogang District, Contact Person: Arun Kumar-Manager-W: www.infineon.com Semiconductor DivisionMr. Vinay Shenoy - Vice President and Managing Guangzhou - 510663, P.R. China T: 0124 - 4996600, (10 Lines); M: 9810121489Director E: [email protected], W: toshiba. T: +86-20-38601850-8814 semicon-storage.com E: [email protected] Vicor Power Address: # 507 Prestige Atrium, Central Street, W: www.mornsun-power.com Bangalore - 560001 T: +91-80-22868889 Kelly Zhu - Overseas Marketing Team E: [email protected]; W: www.vicorpower.com Kauser Fathima, Marketing ManagerTexas Instruments India Pvt Ltd Rohm Semiconductor India Pvt LtdAddress: Bagmane Tech Park, No. 66/3, Adjacent Address: Unit 4B & 5, Level-02, Bagmane Laurel, AVX Corporationto LRDE, Byrasandra, C V Raman Nagar Post, Block-B, Bagmane Tech Park, C. V. Raman Nagar, Address: 668/B, 3rd Floor, 17C Main Road, 6thBangalore-560093, Byasandra, Bangalore-560093, Block, Koramangala Bangalore - 560095 IndiaT: +91-80-25345454, +91-80-25345455; T: +91-80-41250811/12; F: +91-80-41250813 T: 91-80-6450 0715W: www.ti.com E: [email protected], [email protected] E: [email protected]; W: www.avx.comReghu Neelakantan W: www.rohm.com Larry Eisenberger, Principal Technical Marketing Contact Person: Daisuke Nakamura - MD EngineerAnalog Devices India Pvt. Ltd.Address: RMZ - INFINITY, TOWER D, LEVEL 6, No. STMicroelectronics Pvt. Ltd. EPCOS India Private Limited- 3, OLD MADRAS ROAD, Bangalore - 560 016, Address: Plot No.1, Knowledge Park III, Address: Unit no. 908, 909, 9th Floor, Damji ShamjiKarnataka Greater Noida – 208016, Uttar Pardesh Business Galleria, L.B. S. Marg, Kanjur Marg (W)T: 080-43002320 T: 9810606004 Mumbai 400078E: [email protected]; E: [email protected]; W: www.st.com T: 022- 2575 0804; M: +91 937 262 5001W: www.analog.com Vinay Kumar Thapliyal F: +91 22 25750810Som Choudhury - Managing Director E: mailto:[email protected]; W: www.tdk. co.jp, www.epcos.comAtmel R&D India Pvt. Ltd Vishay Components India Pvt. Ltd. Girish Dalvi, Regional Head - Sales & MarketingAddress: 12th Floor, A Wing, Prince Info City II, 283, Aluminium and Film Capacitor Business GroupRajiv Gandhi Salai Chennai, Tamil Nadu, 600096 Address: #408, Prestige Towers, 99 ResidencyT: +91-44-45401113 Road, Bangalore - 560 025, Karnataka Insel Rectifiers Pvt LtdE: [email protected], [email protected] Address: 151/152 Udyog Kendra, Extn II, EcotechW: www.atmel.com T: 91 80 67640000; F: 91 80 67640010 III, Greater Noida-201306, Gautam Budh Nagar,Ganesh Kumar - Country Head Uttar Pradesh, India. E: [email protected]; W: www.vishay. T: 180030709989 com E: [email protected] W: www.rectifierindia.comMicrochip Technology Inc. RECOM Asia Pte.Ltd. Naveen Goel, Managing DirectorPlot # 149B, EPIP Industrial Area, (1st Phase)Whitefield, Address: 120 Lower Delta Road #10-03/04Bangalore, Karnataka 560066 Cendex Centre, Singapore - 169208T: +91 80 30904444; F: +91-80-3090-4080E: [email protected]; T: Tel: +65 6276 8795W: www.microchip.comContact Person: Kenny Chow E: [email protected]; W: www.recom- power.com Cai Yahui - Marketing Support APAC Spotlight on Indian Electronics 2018-19 | 222

Blue Chip Companies UPS Inverter Manufacturers Leading PlayersMicrotek Internatonal Pvt Ltd True Power International Ltd Epoch Electronica LtdH-57, Udyog Nagar, Rohtak Road, New Address: 66 Salkia School Road, ‘AAVAS’, B Block,Delhi-110041 Address: C -7, Suraj Park, (Opp. Hyundai Service Howrah - 711 106, West BangalT: 011-4273377; Centre, Badli Industrial Area) Near Badli Metro T: +91-33-26651551/9193,E: [email protected]; Station, Delhi - 110042 E: [email protected], info@W: www.microtekdirect.com T: +91-11-27833603,27833604; epochelectronics.comN K Agarwal - MD E: [email protected] W: www.epochelectronica.com W: www.truepower.in Champak Kundu - MD Ravi Mundra - MDHitachi Hi-Rel Power Electronics Pvt V-Guard Industries Ltd Elent Electronics Pvt LtdLtd Address: 42/962, Vennala High School Road, Address: 39, D.S.I.D.C. Complex, Okhla Phase-1,Address: B-52, Corporate House, Judges Vennala, New Delhi-110020 IndiaBungalow Road, Bodakdev, Ahmedabad - 380054, Kochi-682028, Kerala T: 011-40704402, 40704444,Gujarat - India T: +91-484-3005000; E: [email protected], [email protected];T: +91-79-66046200; E: [email protected]; W: www.elent.inE: [email protected]; W: www.vguard.in Ramotar Singh - DirectorW: www.hitachi-hirel.com Ravi Mundra - MDPiyush Shah - MD Samtek Electronics Riello Power India Pvt Ltd Address: F-256, A, No., 4th St, Pandav Nagar,Amara Raja Electronics Ltd Address: Prime Tower, 287-288, Udyog Vihar New Delhi - 110091E: Riaz Garden, VI Floor, 12 Kodambakkam High Phase-II, Gurgaon - 122015, Haryana T: +91-11-22758219, 22794051;Road, T: +91-124-6656999; E: [email protected], samtekelectronics@Chennai-600 034, Tamil Nadu, India E: [email protected] W: www.riello-ups.in hotmail.com;T: +91-44-28213270/42910700; Samant Choudhary - DirectorW: www.amararajaelectronics.com Tritronics India Pvt LtdJayadev Galla - MD Address: 143, F.I.E.Patparganj, Delhi-110092 Piller Power India Pvt Ltd (Active (India) Power)Aplab Ltd T: 011-4216100, +91-9789086628; Address: DCT 603, 6th Floor, DLF City Court,Address: Aplab House, A-5, Wagle Estate, E: [email protected]; Sikanderpur, MG Road, Gurgaon -122001,Thane-400 604, Maharastra, W: www.tritronicsindia.com Haryana, IndiaT: +91-22-67395555, 25821861; Rajiv Chatrath - Director, Operations T: +91 12442 90262E: [email protected]; E: [email protected]: www.aplab.com upsinverter.com W: www.activepower.comNishith Deodhar - MD Address: 53A/6, Rama Road Ind. Area, Near Sat Guru Ram Singh Marg Metro Station, Near NDPL Solar Powertech SolutionsUniline Energy Systems Pvt Ltd Grid Office, Address: TS- 33, SIDCO Industrial Estate, Kurichi,Address: 198/23, Ramesh Market, East of Kailash, New Delhi-110015 Coimbatore - 641021, Tamil Nadu, IndiaNew Delhi-110065 T: +91-9250885885, +91-11-65168534, 65805761 M: +91-9894988771, +91-9894632030T: +91-11-46661111, 26469108; E: [email protected], [email protected] T: +91-422-2671772, +91-422-2675533E: [email protected] W: www.upsinverter.com E: [email protected]: www.unilineindia.com Yogesh Dua - Partner W: www.solarpowertech.co.inR K Bansal - MD R. Shri Shankar (Partner), Mr. P. Murugesan Spotlight on Indian Electronics 2018-19 | 223

Blue Chip CompaniesTechno Vision Energy Private Limited Makvolt Power Private LimitedAddress: Sr.No.50/3A/14, West Wing Ground Floor, Near Navale Hospital, (Formerly Volta Powerlink Pvt Ltd )Narhe Road, Pune - 411041, Maharashtra Address: 29 Blue Rose Industrial Estate, Next to H.P Petrol Pump, W.E.T: +91- 9370132710/11, +91 20 24390063/093/841 Highway, Borivali (E), Mumbai - 400 066, Maharashtra, IndiaE: [email protected] T: +91 9320233634W: www.technovisionenergy.com E: [email protected] Basavanneppa Anad (Director) W: www.makvolt.com Vishal KundnaniSine Wave Energy Saver Private LimitedAddress: No. 98, Janakpuri I, Imliwala Phatak 279, Vinoba Vihar, Model Town, Zenelec Power Systems Private LimitedMalviya Nagar, Jaipur - 302015, Rajasthan, India Address: No. 37, Block 2, SIDCO, Electroincs Complex Guindy IndustrialT: +91-93144-20618, M: +91-8875022111, 98290-33875 Estate, Chennai - 600032, Tamil Nadu, IndiaE: [email protected] M: +919842154404, +91-9381062067, +91-9381220558W: www.sinewaveindia.com T: 91-452-2334224Kishan Choudhary (M.D), E: [email protected], W: www.zenelec.comDesta Electricals (India) Pvt. Ltd. Mr. Karthikeyan (proprietor)Address: Unit-2, Plot No. 1, 2, 3, Mini Industrial Area, Mant, Vrindavan Road,District Mathura Genus Power Infrastructures LtdM: +91-9313528569, +91-9910900398 Address: SPL-3, RIICO Industrial Area, Sitapura, Tonk Road,E: [email protected] Jaipur-302022, Rajasthan. IndiaW: www.destastabilizer.com T: +91-141-7102400/500;Sanket Singh (Managing Director) E: [email protected]; W: www.genus.inContech Instruments Ltd. I C Agarwal - CharimanAddress: 301, Punit Indl. Premises, Turbhe, Navi Mumbai – 400705T: 91 22 61393000 (100 Lines) Delta Power Solutions India Pvt LtdM: +919323995730, 91-22-61393000 Address: Plot No. 43 Sector 35, HSIIDC Gurgaon-122001, HaryanaE: [email protected] T: 0124-4874900;W: contechweighingscales.com E: [email protected];Mr. Vaman Nittur Holla (Marketing Director) W: www.deltaelectronicsindia.com Suhas Joshi - DirectorFeedline Power Products Su-Kam Power Systems LtdAddress: No. 5, Neelkanth House, S- 524, Vikas Marg, Shakarpur, Delhi - Address: Plot No. 54, Udyog Vihar, Phase VI, Sector-37,110092, India Gurgaon - 122001, Haryana, IndiaMobile: +91-9811151459, +91-8586999563 T: +91-124-4030700, 4170500;E: [email protected] E: [email protected];W: www.feedlinepower.in W: www.su-kam.comRakesh Babbar (Manager) Kunwer Sachdev - MDIndus Instruments Pvt LtdAddress: 1, Ground floor, Abhang, Agarkar Road, Near Hotel Modern Cafe,Dombivli (East) Dist. Thane, Maharashtra Pin 421306T: 0251-2436188 / 2439590E: [email protected], [email protected]: www.indussolar.inVijay Savaleram Dumbre (Director) Spotlight on Indian Electronics 2018-19 | 224

Blue Chip Companies Quality & Certification Consultants Leading PlayersUL India Pvt Ltd AGSI Certification Pvt. Ltd. TUV SUD South Asia Private LimitedAddress: Kalyani Platina, 3rd Floor, Block I, No. Address: 208, Kartik Complex, New Link Road, Address: Solitaire, 4th Floor, ITI Road, Aundh, Pune24, EPIP Zone, Phase II, Whitefield, Bangalore - Opp. Laxmi Industrial Estate, Andheri (West). – 411007560066, Karnataka Mumbai 400 053 T: +91 20 6684 1212T: +91-80-41384400; F: +91-80-28413759 T: +91 22 2674 3602; F: +91 22 2674 3603 E: [email protected]: [email protected]; W: india.ul.com E: [email protected]; W: www.agsicertification. W: www.tuv-sud.inLakshmi Nair com Mr. Niranjan Nadkarni, CEO Mrs. Mona Desai - DirectorDNV GL Business Assurance India Pvt. NVT Quality Certification Pvt. Ltd.Ltd. IRCLASS Systems and Solutions Private Address: CAP-1, EOIZ, Export Promotion IndustrialAddress: Equinox Business Park Tower 3, 6th Limited Park, Near ITPL, Whitefield, Bangalore – 560 066,Floor Off Bandra-Kurla Complex, LBS Marg, Kurla Address :2nd Floor, New Building, 52 A, India(West), Mumbai 400070 AdiShankaracharya Marg, Opposite Powai Lake, T: +91-80-65343536/37/38; F: +91-80-2841 6767T: +91-22-61769000 Powai, Mumbai - 400 072. E: [email protected]; | W: www.nvtquality.comE: [email protected], W: www. T: + 91-22-30519800, 30519802; F: + 91-22- Mr K. G. Garg - Chairman & Chief Executivednvgl.com 30519826M. Sivadasan - Technical Manager ( India and Sri E: [email protected]; American Quality Assessors (India)Lanka) W: www.irqs.co.in Private Limited Mr. ShashiNath Mishra - Head - IRQS Address: First Floor, Plot No.69, House No.Tuv India Pvt. Ltd. 8-2-248/1/7/69/1, Beside Cuppa Restaurant,Address: 801, Raheja Plaza I, LBS Road, BSI Group India Pvt Ltd. SreeNagarjuna Co-operative Society, Punjagutta,Ghatkopar (West), Mumbai - 400 086, Maharastra Address: The Mira Corporate Suites (A-2), Plot 1 & Hyderabad – 500 082, A.P, India.T: + 91 22 66477000, 7010; F: + 91 22 6647 7009 2, Ishwar Nagar, Mathura Road, New Delhi - 110 T: +91 - 40 23301618, 1554, 1582; F: +91 40E: [email protected]; W: www.tuvindia.co.in 065 23301583Mr. Anil Rairikar - Managing Director T: +91 11 2692 9000 (eight lines), +91 11 2692 E: [email protected]; | W: www.aqa.in 9000 (Extn 106) Mr. SrihariKotelaBureau Veritas Certification (India) Pvt. M: +91 98182 41230; F: +91 11 2692 9001Ltd. E: [email protected], Mini.Sharma@ URS Certification Ltd.Address: Marwah Centre, 6th Floor, Opposite bsigroup.com Address: F- 3, Sector- 6, Noida 201301, IndiaAnsa Industrial Estate, Kishanlal Marwah Marg, Off W: www.bsigroup.co.in T: +91 120 6404223-26; F: +91 120 4297916Sakivihar Road, Andheri East, Mumbai - 400 072, Mr. Sandeep Dua - Head Compliance & Risk – E: [email protected]; | W: www.ursindia.comMaharastra India Mr. Mukesh Singhal - PresidentT: +91-22-66956316, M: 9769955395; F: +91 2266956302 International Certifications Services Transpacific Certifications Ltd.E: [email protected] Private Ltd. Address: 32/22, 3rd Floor, East Patel Nagar, NewW: www.certification.bureauveritas.co.in Address: 22/23, Goodwill Premises, Swastik Delhi-110008Mr. Ramesh Koregave - General Manager Estate, 178, CST Road, Kalina Santacruz (East) T: +91-11-25715108, 25735107; F: +91-11-Certification Mumbai-400 098, Maharashtra 25715112 T: + 91 22 2650 7777 - 82; E: [email protected] Quality Certification Pvt. F: + 91 22 2650 7777 - 82 extension - 333 W: www.tclcertifications.comLtd. E: [email protected]; | W: www.icsasian.com Mr. Parveen Sadana - DirectorAddress: Platinum City, G/13/03, Site No. 02, Next Mr. SundarKataria - Chairman & Managing Directorto CMTI, HMT Road, Yeshwantpur Post, Bangalore QMS Certification Services Pvt. Ltd.- 560 022 TUV Rheinland (India) Pvt. Ltd. Address: AFF–1, ‘Srivari Enclave’, 4/7,T: +91 8041172752 / 41277353; F: +91 Address: 82/A, 3rd Main, West Wing, Electronic Raghavendra Colony, Yesvanthpur, Bangalore -8041280347 City, West Phase (Phase I), Bangalore – 560 100. 560 022, KarnatakaE: [email protected], anil@iqcglobal. T:+91 80 3055 4345, +91 22 6108 3703 T: +91 80 42136369; M: 9810274345; F: +91 80com | W: www.iqcglobal.com F: +91 80 3055 4342, + 91 22 6108 3737 42136369Mr. H. Narasimhaiah - Director Technical Manager E: [email protected], [email protected]. E: [email protected]; com, | W: www.ind.tuv.com W: www.qmscertification.com Mr. M.Bhaskar- Director, Finance and General Mr. Sanjay Kaushik - Technical Manager Administration Spotlight on Indian Electronics 2018-19 | 225

Blue Chip CompaniesVexil Business Process Services Pvt. STQC Certification Services Quality Austria Central Asia Pvt. Ltd.Ltd. Address: STQC Directorate, Department of (A division of Peacock Global Company)Address: 80-F, Kamla Nagar, Delhi - 110 007 Information Technology, Government of India, Address: 52B, Okhla Phase-IIINew Delhi-110020T: +91 011 2384 5001, M: +91 9350232711, Electronic Niketan, 6 CGO Complex, Lodhi Road, T: + 91 11 4646 5100, + 91 9650337960;9310232711 New Delhi 110003 F: + 91 11 4646 5101E: [email protected], [email protected] T: +91-11-24364878, 24364752, 24301361 E: [email protected]: www.vexilbps.com F: +91-11-2436 3083; W: www.qualityaustriacentralasia.comDr. Vinod Kumar Jain E: [email protected] Mr. Alok Kumar - General Manager - Technical G C Saxena - Director & CEO STQC CertificationRINA India Pvt. Ltd. Secvices BCI Management Systems Pvt. Ltd.Address: B Wing 607/608, Everest Chambers, Address: Office No. 4, First Floor C-4/7 ShivaMarol Naka, Andheri-Kurla Road, Andheri (E), ISOQAR (India) Pvt. Ltd. Arcade, Acharya Niketan, Mayur Vihar, Phase-1,Mumbai-400 059, India Address: 303, Matrix, Corporate Road, Delhi-110091, IndiaT: +91-22-2851 5862/63; M: +91-09619252595 Prahladnagar, off. S. G. Highway, Ahmedabad- M: +91-9810289812, T: 011-43601987; F: 011-F: +91-22-2852 5139 380051, Gujarat, India 43601911E: [email protected], [email protected] T: 079- 65452100-01-02; F: 079 40035650 E: [email protected]; W: www.bcipl.W: www.rina.org E: [email protected]; W: www.isoqar.com co.inThomas Alocious Fernandez - Country Manager- Mr. Shiv Prakash G Bhutra - Director Anil Kumar Tomar - DirectorCertification GCAS Quality Certifications Pvt. Ltd. Bureau of Indian StandardsSGS India Pvt. Ltd. Address: Door No.: 96/104 Kaveri Complex, Flat Address: ManakBhavan, 9, Bahadur Shah ZafarAddress: SGS House, 4B, Adi Shankaracharya No.: 403, 4th Floor, Nungambakkam High Road, Marg, New Delhi - 110002, IndiaMarg, Vikhroli (West) Mumbai - 400 083, Nungambakkam, T: +91 11 23236584; F: +91 11 3221535Maharashtra | T: +91- 22 - 6640 8888 Chennai –600 034, Tamil Nadu E: [email protected]; W: www.bis.org.inE: [email protected]; Mr. S. Beski Rajan - CEO Smt. Madhulika Prakash - Scientist-F [DDG (PPW: www.sgs.com T: 044 45038179; F: 044 45038189 & C)] E: [email protected]; [email protected]ÜV InterCert Saar India Pvt. Ltd. W: gcasquality.com ACM Certification Pvt. Ltd.Address: No. 122/1, 3rd Main Road, Margosa Mr. Shiv Prakash G Bhutra - Director Address: 403, Building No. 55, MadhubanRoad, Malleswaram, Bangalore 560003, Karnataka Building, Nehru Place, New Delhi – 110019T: 080-41285610; F: 080-41285609; M: +91- Vincotte International India T: 011-41764400; M: 99904380299902826219 Assessment Services Pvt. Ltd. E: [email protected];E: [email protected]; W: www.tuv-intercert. Address: A-49, 2nd Floor, FIEE Complex, Okhla W: www.acmcertifications.comorg Industrial Area, Phase-II, New Delhi-110020 Mr. Nadeem Pasha - Managing DirectorMrs. Aradhana Mishra - GM - Food Safety and T: 011 - 46018938; F: 0124 4101153Certification In-charge E: [email protected]; Maverick Quality Advisory Services Pvt. W: www.vi-india.com Ltd.BSCIC Certifications Pvt. Ltd. Mr. MandarSathaye - Manager Compliance and Address: 123, RadheyShyam Park, PO -Address: Suites 2nd Floor, SCO 150, Sector 21C , Risk Sahibabad, Distt. Ghaziabad, Uttar PardeshFaridabad -121001, Haryana, India T: +91-120-4117140; F: +91-120-4117140T: +91-1294162505; M +91-9910502709; F: +91 Equalitas Certifications Limited E: [email protected];129 4012505 Address: A2/108, FF, Janakpuri, New Delhi - W: www.mqasglobal.comE: [email protected], [email protected] 110058 Mr. Ashok Vardhan Maheshwari - DirectorW: www.bsc-icc.com M: +91 9069114136Sanjay Seth - Managing Director E: [email protected]; W: www.theecl.comSWISS CERT Pvt. Ltd. (Formerly Swiso Mr. KushalJohari - DirectorIndia Pvt Ltd)Address: 412, Best Sky Tower, NetajiSubhash MS Certification Services Pvt. Ltd.Place, Pitampura, Address: 3/23, R.K. Chatterjee Road, Kolkata- 700Delhi 110034 042T: +91 11 41539720; F: +91 11 41539721 T: 9433042739, 033-2441-7657; F: 033-2441-7657E: [email protected]; W: www.swisoindia.com E: [email protected], [email protected]. Vishal Kumar - Director org W: www.mscertification.orgIntertek India Pvt. Ltd. Mr. Sunirmal Dutta - Managing DirectorAddress: F Wing, 2nd Floor Tex Centre, ChandivaliFarm Road, Andheri (East), Mumbai-400072,MaharastraT: +91 22 6719 7940; F: +91 22 6703 8688E: [email protected]: www.intertek-sc.com / www.intertek.com Spotlight on Indian Electronics 2018-19 | 226

Blue Chip Companies LED Chips Manufacturer Leading PlayersKwality Photonics Pvt Ltd Nichia Chemical (India) Pvt. Ltd. MLS India Pvt LtdAddress: 29, Electronic Complex, Kushaiguda, Address: No. 409, Prestige Meridian 1, No.29, M. Address: 1021-1022, DLF Tower A, DDA, DistrictHyderabad-500062, G. Road, Centre Jasola, New Delhi - 110025T: 040-27123555; Bengaluru - 560001 T: 011-41685701E: [email protected] T: 080-25598821/25598822/25598823 E: [email protected]: www.kwalityphotonics.com W: www.nichia.co.jp W: www.forestled.comVijay Kumar Gupta - Director Mr. Jitendra Pandey, Assistant Manager Mr. Deepak Singh Bohra, Marketing ManagerLEDchip Indus Pvt Ltd Samsung India Electronics Pvt. Ltd. Osram India Private Limited29, Electronic Complex, Kushaiguda, Hyderabad Address: 2nd, 3rd, 4th Floor, Tower-C, Vipul Tech Address: 11th Floor, Tower B, South City - 1,- 500062 Square, Sector-43, Golf Course Road, Gurgaon - Gurgaon - 122001T: 7981230551, 9000081171 122002, Haryana T: +91 124 4150100E: [email protected] BCall : 180030108282 M: +91-9958793960W: www.kwalityphotonics.com T : 0124-4881234 E: [email protected] Kumar Gupta - Director E: [email protected]; W: www. W: www.osramindia.com samsung.com/in Mr. Ajay Mittal, Sr. Manager Lighting Solutions LED Lights Leading PlayersSemiconic Devices Pvt Ltd Key Operation & Electrocomponents Grande Energy Solution Pvt. Ltd. Pvt. Ltd. Address: Ground Floor, B-18, Sector- 7, Noida –Address: On Opposite Road from Metro Pillar 201301No. 617, B 3-4, SHOP PLOT, Shankar Garden, Address: Plot No.48, 1st floor, street no-3, M: 9891536022Vikaspuri, New Delhi – 110018 T: 011-42804264; rajasthan udyog Nagar, Near Jahangirpuri Metro E: [email protected]; W: www.grandein.comM: 9999355484, 9811115962 station, GT . Karnal Road, Delhi – 110033 Contact Person: Kartik Khullar - Managing DirectorE: [email protected]; T: 011-45380073, 9953557477W: www.semiconic.com E: [email protected];Sandeep Soni/Ashish Talwar - Director W: www.keyoperation.in Contact Person: Parveen Mahajan - Director Spotlight on Indian Electronics 2018-19 | 227

Blue Chip Companies Liberty Lighting India Bajaj Electricals Ltd Address: 1/10853/A, Street No-5, Subhas Park Address: 45/47, Veer Nariman Road, Mumbai 400Inoday Technology India Pvt. Ltd. (Near Shanti Nursing Hospital ) 001Address: D-112, 1st Floor, Sector-65, Shahdara, Delhi – 110039 T: +91-22-61107800Noida-201309 T: +91-11-22824775; E: [email protected]: 0120-4200022, 9811445976 M: 9999989194 W: www.bajajelectricals.comE: [email protected]; W: www.inodaytech. E: [email protected]; Mr. Mangesh Patilcom W: www.libertylighting.inContact Person: Mohit Chaudhary - Director Contact Person: Lalit Aggarwal - CEOInnovative Premier Lighting Pvt. Ltd. Wipro Enterprises Ltd Fiem Industries Ltd Address: Wipro Consumer Care & Lighting, C Address: Plot No.1915, HSIIDC, Rai IndustrialAddress: Stall No. 15, Opp Shoap No. 355 ,Old Block, 2nd Floor, Doddakannelli, Estate, Phase-V, Distt. Sonepat (Haryana)Lajpat Rai Market, Delhi – 110006 Sarjapur Road, Bangalore -560035 T: +91-130-2367905/907 Toll free No: 18004251969 E: [email protected];T: 8527126464, 011-23874233 W: wiproconsumerlighting.com W: www.fiemindustries.com J K Jain - Chairman and MDE: [email protected]; W: www.ipllighting.comContact Person: Jitan Mahajan - ManagingDirectorSynapptra Technologies Pvt Ltd Eveready Industries India Ltd. General ElectricAddress: No. 2242, 21 A Main, 15 C Cross, Address: 2, Rainey Park, Kolkata - 700 019, West Address: DLF Cyber Green, Gurgaon, HaryanaSector-1, HSR Layout, Bangalore - 560102 Bengal, India T: +91-124-4808123M: +91-9599066299 T: +91-33-2486 4961, E: [email protected]: [email protected] F: +91-33-2486-4673 W: www.ge.comVikram Yadav, Sales Director E: - [email protected]; Jeff Immelt - CEO W: www.evereadyindia.comPintron Devices & Systems Havells India LtdAddress: A-10, IIIrd Floor, Temple Colony, Near SBI Syska LED Lights Address: QRG Towers, 2D, Sec- 126, Express way,Bank, Samaypur (Bawana Road), Delhi - 110042 Address: Syska House, Plot No. 89, 90, 91, Lane Noida - 201304 UPM: +91-9891757383, 9999909470 No. 4, Sr. No. 232/1/2, Sakore Nagar, Off Airport T: +91-120-3331000E: [email protected], [email protected] Road, Lohegaon, Pune 411014 E: [email protected], marketing@ T: +91 20 40131000 havells.comKirti Enterprises E: [email protected]; W: www.havells.com1710, Shop No. 13, IInd Floor, Bhagirath Palace, W: www.syskaledlights.com/ Sunil Sikka - PresidentDelhi - 110006M: 9718263154, 7053919529E: [email protected] Point Ajanta Manufacturing Limited (OREVA HPL Electric & Power Pvt Ltd Group) Address: 1/21, Asaf Ali Road, New Delhi - 11000276-A, Rani Jhansi Road, Jhandewalan, New Delhi T: +91-11-23234411- 110055 Address: Ajanta OREVA House,2nd Floor, Thaltej E: [email protected] Circle S.G Highway, Ahmadabad, 380054, Gujarat, W: www.hplindia.comM: +91-9810435853, 9205886424, 8826449191 India. Contact Person: Lalit Seth - Chairman and MDE: [email protected], ledsignagepoint@ T: +91 793015 7999,+91 793015 7899;gmail.com F: +91 7878036465;W: www.stencilpoint.com, www.ledsignagepoint.com W: www.oreva.comDaljeet (Diya) Marketing HeadRadio Spares Moser Baer India Limited OSRAM India Pvt LtdAddress: 1681/12-13, Mangal Market, Bhagirath Address: 43B, Okhla Industrial Estate, New Delhi Address: 11th Floor, Signature Towers, Tower B,Palace, Chandani Chowk, Delhi - 110006 – 110020. South City-1, Gurgaon - 122001, Haryana, IndiaT: +91-11-23860466, 23868658 T: +91 11 40594444, 91 11 26911570 – 74 T: +91-124-4150100M: +91-9810417775, 9810417773 F: +91 11 41635211, 91 11 26911860 E: [email protected]: [email protected] E: [email protected]; W: www.osram.com W: moserbaer.com Aldo Kamper, CEO Spotlight on Indian Electronics 2018-19 | 228

Blue Chip CompaniesNTL Lemnis India Pvt Ltd Instapower Ltd. Everlight Electronics India Pvt. LtdAddress: A-111, Sector-65, Noida - 201301, Uttar Address: C-72, Shivalik, New Delhi-110017 Address: Ithum Tower-A, 4th Floor, Office No.407,Pradesh, India T: +91-11-26015000 Plot No.A-40, Sectort-62, Noida-201309T: +91-120-4008888 E: [email protected] M: 9811831442; T: 080-41633111E: [email protected] | W: www.ntl-lemnis.com W: www.instapower.com E: [email protected]; HR Vaish - Managing Director W: www.everlight.comPhilips India Ltd Pyrotech Electronics Pvt Ltd Olive LED Lights Pvt. Ltd.Address: 9th Floor, DLF 9-B,DLF Cyber City,Sector Address: F-16A, Road No. 3 MIA, Udaipur, Address: 3870-a/10, Near Metro Station Pillar No-25, DLF Phase - 3, Gurgaon - 122002, India Rajasthan, India 231,, Street Number 137, Kanhiya Nagar, Tri Nagar,T: 0120-6611094, 4606246 T: +91-294-2492123/25, +91-294-3264181/82 New Delhi - 110035W: www.philips.com E: [email protected] T: 011-2738 6560; E: [email protected]; W: www.Krishna Kumar Ananthasubramanian - CEO W: www.peplelectronics.com oliveled.in Ankit Talesara - Vice President Contact Person: Shyam S. Jindal - ManagingSurya Roshni Ltd DirectorAddress: Padma Tower-1, Rajendra Place, New Abby Lighting & Switchgear LtdDelhi – 110008 Address: 401/2/3, Orbit Premises, ChincholiBunder TektronicsT: +91-11-25810093-96 Road Extn, Opp Tangent, Malad (W), Mumbai- Address: 402, 4th Floor , Mangalam ParadiseE: [email protected] 400064, India. Mall , Mangalam Palace , Sector-3 , Rohini, DelhiW: www.surya.co.in T: +91-22-40038030 - 110085Jai Prakash Agarwal, Chairman E: [email protected]; M: 9811515424, 7747018801 W: www.abbylighting.com E: [email protected] Electronics Ltd Sanjay Bajaj - Managing Director W: www.tektronics1.comAddress: A-4/II, Electronic Complex, Contact Person: Sunny Dhawan - DirectorKUSHAIGUDA, ECIL Post, HYDERABAD-500 062. Karvin Power Systems Pvt LtdIndia Address: 134, Blue Rose Industrial Estate, Off. Usha International LtdT: +91-40-27122222 Western Express Highway, Borivali - East. Mumbai Address: Plot No. 15, Institutional Area, Sector-32,E: [email protected] - 400066, Maharashtra, India Gurgaon, Haryana, Pin: 122001W: www.micelectronics.com T: 022-28704780/022-42642661 T: +91-124-4583100MV RamanaRao E: [email protected]; W: www.karvinpower. E: [email protected]; com W: www.usha.comPromptec Renewable Energy Solutions Sanjay Agrawal - Managing DirectorPvt Ltd Alien Energy Pvt LtdAddress: Shibra Farms, Nagasandra Main Road, Continental Device India Limited Address: A 16/6, Om Sai Complex, Link Road,Near 8th Mile, Tumkur Road, Bangalore-560073. Address: C-120, Naraina Indl. Area, New Delhi – Site IV, Industrial Area Sahibabad (Delhi-NCR),India 110028 Ghaziabad (U.P.) - 201010T: +91-80-28390897/8 T: 011-41411112, M: 9650611599 T: +(91)-(120)-2895501-04W: www.promptec.in E: [email protected] E: [email protected]; W: www.cdil.com W: www.alienenergy.inAvni Energy Solutions Pvt Ltd Prithvideep Singh - Strategic Marketing DirectorAddress: No.19/3, Srinivas Industrial Estate,Konanakunte Post, Kanakapura Road, Bangalore LED Fixtures India- 560062T: +91-80-26860337 Address: E-9, 60, S.G.M Nagar N.I.T.,W: www.avnienergy.com Faridabad-121003,Mr Anish Kumar (BDM) T: 0129-2411156 M: 9810712782GOLDWYN Ltd E: [email protected]; W: www.Address: 15 & 16, Noida Special Economic Zone ledfixturesindia.com[SEZ] Amit Khurana - DirectorNoida-201 305, IndiaT: +91-120-4712400 G J LED Lighting Pvt Ltd.E: [email protected] Address: 1st Floor , WZ-8/2, Industrial Area KirtiW: www.goldwynled.com Nagar,Keshav Thirani - MD, Chairman New Delhi – 110015 M: 9971784441; E: [email protected] Contact Person: Amit Taneja - Managing Director Climatrol Corporation Address: 108A Madangir, New Delhi-110062 T: 011-40775500 E: [email protected]; W: www.climatrol.in Spotlight on Indian Electronics 2018-19 | 229

Blue Chip Companies Test & Measurement Leading Players (Manufacturers)Keysight Technologies India Private Yokogawa India Pvt Ltd Hioki E.E. CorporationLimited Address: No.96, Electronic City Complex, Hosur Address: Khandela House, 24, Gulmohar Colony,Address: Unit Nos.404-A, Corporate One, Plot Road, Electronic City, Bangalore - 560100, Indore - 452018 Madhya Pradesh IndiaNo.5, Non Hierarchical Commercial Centre, Karnataka T: +91-731-4020081/82;Jasola, New Delhi-110025 T: +(91)-80-41586000, 41586201 F: +91-731-4020083T: 011-4623 7211, Mob: 704 276 6870 E: [email protected] E: [email protected];F: 1800-11-3035 or 0124-229-2011 W: www.yokogawa.com W: www.hioki.comE: [email protected] Contact Person: Ms.. Veena Mohare Contact Person: Michelle UchiyamaW: www.keysight.comContact Person: Mr. Sandeep Kapoor, Country Crown Electronic Systems TeLedyne LeCroy India Trading PrivateHead - Marketing Address: 69/2A, Najafgarh Road Industrial Area, Limited Near Moti Nagar Crossing, New Delhi - 110015, Address: Plot No-63/154, 1st Main Road, Dr RajAnritsu India Pvt Ltd (INDIA) Kumar Road, 1st Block, Rajajinagar, Bengaluru -Address: 2, 3rd Floor No.837/1 Binnamangla T: +91-11-64508650/64508649/25995324 560010, Karnataka, IndiaStage, Indiranagar 100 Feet Road, Bangalore - F: +91-11-45013465 E: [email protected]; W: teledynelecroy.Karnataka E: [email protected]; comT: +91-80-40581300 W: www.crown-electronics.comE: [email protected]; Contact Person: Mr. Aditya Nagpal Meco Instruments Pvt. Ltd.W: www.anritsu.com Address: Plot No. EL-1, MIDC Electronic Zone, TTCContact Person: Mr. Madhukar Tripathi Industrial Area, Mahape, Navi Mumbai 400710. (INDIA)Good Will Instrument Co., Ltd. NI Systems (India) Private Limited T: 022-27673311-16 (Sales);Address: No.7-1, Jhongsing Road., Tucheng Dist., Address: 81/1 & 82/1, SalarpuriaSoftzone, Wing F: 022-27673310, 27673330New Taipei City 236, Taiwan B, 5th Floor, Block A Bellandur, VarthurHobli, E: [email protected];T: +886-2-2268-0389 Bangalore 560103, Karnataka W: www.mecoinst.comE: [email protected]; T: +91 80 411 90000; Contact Person: Mr Kamal GoliyaW: www.gwinstek.com F: +91 80 411 90010Contact Person: Mr. Helena Wang E: [email protected]; Qmax Test Equipments Pvt. Ltd W: india.ni.com Address: No. 6 ,Elcot Avenue, IT Highway, Contact Person: Ms. Shirin Bardia Sholinganallur, Chennai - 600002, Tamil Nadu M: 9840888893;Rohde & Schwarz India Private Limited Metro Electronic Products E: [email protected], Mohan Co-Operative Industrial Estate, Address: 355, Old LajpatRai Market, W: www.qmaxtest.comMathura Road, ChandniChowk, Delhi - 110006, Contact Person: Mr. V VijayakumarNew Delhi - 110044 T: +91-11-23868195,T: +91-11-42535400; E: [email protected]; Rishabh Instruments Pvt. Ltd.F: +91-11-42535433 W: www.metroq.in Address: F-31, MIDC, Satpur, Nashik - 422007,E: [email protected] Contact Person: Mr. Manish Kwatra Maharashtra IndiaW: www.rohde-schwarz.com T: 0253-2202202/203; F: 0253-2351064Contact Person: Mr. Nasser Jariwala E: [email protected]; W: www.rishabh.co.in Contact Person: Mr. Nandkishore Spotlight on Indian Electronics 2018-19 | 230

Signet Electronics Private Limited Aplab Limited Blue Chip CompaniesAddress: Flat No. 48, Shivtirth No. 1, BhulabhaiDesai Road, Address: Aplab House, A-5, Wagle Estate, Sunil AssociatesMumbai - 400026, Maharashtra, INDIA Thane.400 604. India. Address: Ashoka Place, Main Road, Opp. MetroT: 022-24011079, 9870042885 T: +91-22-67395555, 25821861; F: +91-22- Piller No. 211, 23, West Patel Nagar, New DelhiE: [email protected]; 25823137 -110008. (India)W: www.signetgroup.net E: [email protected]; T: +91-11-25882168, 25884181;Contact Person: Mr. Hussain Loynmoon W: www.aplab.com F: +91-11-25883908, Contact Person: Mr. Vasant Acharya M: +91+9312531313. E: [email protected] India Pvt. Ltd Fluke Technologies Pvt. Ltd. W: www.sigmainstruments.comAddress: Salarpuria Premia (Opp. Cessna Address: Deodhar Center, 424, MarolMaroshi Contact Person: Mr. Sunil Manwani: DirectorBusiness Park) Sarjapur Outer Ring Road (ORR) Road, Andheri (E), Mumbai - 400059 IndiaBangalore 560103 T: 22-6138 2022, 9930530630; F: 022-2920 7689 CobhamM: +919900591980; T: +91-80- E: [email protected]; Address: 602, 6th Floor, Raheja Paramount,30792600/22483007 W: www.fluke.com Residency RoadF: +91-80-42922688/22275588 Contact Person: Mr. Milind Thakkar Bangalore - 560025, Karnataka,E: [email protected]; E: [email protected];W: www.tek.com Kusam Electrical Industries Limited W: ats.aeroflex.comContact Person: SaiVenkat Kumar B (Marketing Address: G-17, Bharat Industrial Estate, T.J. Road, Contact Person: Stephen HireManager) Sewree (W), MUMBAI – 400 015, Maharashtra, India SCOPE T&M PVT LTDVigven Tech Mark Private Limited T: 022-2418 1649; 2412 4540; 402, Aurus Chambers, Annex A, S.S. AmrutwarAddress: No 26, RBI Colony, 11 Main, Ananda F: 022-2414 9659 Marg, Worli, Mumbai 400013,Nagar, E: [email protected], sales@kusam-meco. T : +91 22 4344 4244Bangalore - 560024, Karnataka, INDIA co.in F : +91 22 4344 4242T: +91-80-2354-1313 W: www.kusamelectrical.com E: [email protected]: [email protected]; Contact Person: Mr Chandmal Goliya W: http://www.scopetnm.comW: vigven.comContact Person: Ms. S. Radhakrishnan Megger India Pvt Ltd. Rishyamook Building, First FloorAbvolt Technologies Incorporated The Motwane Manufacturing Company 85 A, Panchkuian Road Pvt. Ltd New Delhi - 110001, INDIAAddress: C- 106, Kailas Industrial Complex, Address: GyanBaug, Nashik Road, Nashik - 422 T.: +91 11 2336 3013 / 14Hiranandani Link Road, Park Site, Vikhroli (west), 101, Maharashtra, F: +91 11 2336 3015Mumbai - 400 079, India T: +91-253-2463752, 2463753; E: [email protected] F: No.: +91-253-2463197T: 022-25170633; F: 022-25173338 E: [email protected]; Scientific Mes Technik Pvt.Ltd. W: www.motwane.com B-14, Pologround Industrial Estate,E: [email protected]; W: www.abvoltindia. Contact Person: Suhas C. Mekhe Indore-452 015 INDIAcom | Contact Person: Mr. Ilesh Shah T: +91-731-2422330/33 | +91-731-2422334 E: [email protected] Ltd Scientech Technologies Pvt. Ltd W: http://www.scientificindia.comAddress: A-8, Mohan Cooperative Industrial Estate, Address: 94, Electronic Complex, Pardeshipura,Mathura Road, Indore - 452010, MP ELSYS Technologies Pvt LtdNew Delhi - 110 044 M: +919755591500; T: +91-97555 91500 Address: #150, 3rd Floor, 2nd Main, Kasturi Nagar,T: 011-30810200; F: 011-26950011 E: [email protected]; Bengaluru- 560043E: [email protected]; W: www.aimil.com W: www.scientechworld.com T: +91 80 25428257Contact Person: Mr. Sunil Grover Contact Person: Mr. Ambrish Kela E: [email protected] W: www.elsys.co.in Contact Person: Venu Nair, CEO Spotlight on Indian Electronics 2018-19 | 231

Blue Chip Companies Test & Measurement Leading Players (Suppliers)Livingston India Salicon Nano Technology Private Avante Global Services Pvt. Ltd807 & 808, Vipul Square, Limited Address: 140 GF Santnagar, East OfKailash, NewSushant Lok Phase - I, Address: No. 111, 1st Floor, Laxmi Deep Tower, Delhi- 110065Gurgaon 122002 Laxmi Nagar, District Center, Near To NirmanVihar T: 91-11-26473068, 26473069T: +91 124 4831 400 Metro Station E: [email protected]; W: www.ags.co.inE: [email protected], rishi.sand@microlease. Delhi - 110092, India Contact Person: Ms.Prachi Guptacom T: 8079447787W: http://www.livingston.co.in E: [email protected] Cambridge Instruments & EngineeringContact Person : Mr. Rishi Sand W: www.salicontech.com Co. Contact Person: Mr. T N Singh Address: 55 Ezra Street, 4th Floor, YamunaTangent Test Technologies Bhawan, Kolkata - 700001Address: No 528,8th Main BEML Layout 6Th SPI Engineers Pvt. Ltd. M: 98300 91260, 98300 92117Stage, ITPL Road, Bangalore - 560066, Karnataka Address: 701, Siddharth Building, 96, Nehru Place, Tele Fax: 033-2235-4098T: 080-40936722/40936922; New Delhi - 110 019 E: [email protected]: 080-40936322 T: +91-11-26211351, 26473479 W: www.cieinstruments.comE: [email protected]; F: +91-11-26211352 Contact Person: Mr. P. C. SharmaW: www.tangenttest.com E: [email protected]; W: www.Contact Person: Mr. R. Muthu Kumar spiengineers.com Contact Person: Mr. Sandeep AroraCEM Instruments India Private LimitedAddress: 32A, Ganesh Chandra Avenue, 4th Floor, Agmatel India Pvt. LtdKolkata - 700013, West Bengal, INDIA Address: E-366 IInd Floor NirmanVihar, VikasMarg,T: +91-33-22151376 / 22159759 Delhi – 110092Email: [email protected]; T: +91 011 4306 4306W: www.cem-instruments.in E: [email protected], [email protected] Person: Mr. Vikram Bhansali W: www.agmatel.com Contact Person: Mr A K AggarwalCabinet Manufacturers | Leading PlayersAnand Enterprises KN Enterprises SNT TelecomAddress: Shed 3/5, DSIDC complex, OldSeema Puri, Near Dilshad Garden Metro station Address: RZ- 231,232/1, J-16 - West Sagarpur, Address: 27/10911A, S/F Pandav Road, Shahdara,Delhi-110095 New Delhi – 110046 Delhi - 110032, Near Jawala NagarT: 9810262043, 9311262043E: [email protected], M: 98118 75518 M: [email protected]: www.anandenterprises.in W: www.mobilechargercabinet.inContact Person: Mr. Anand, Director Contact Person: Mr. Ram Kumar Dhillon (Proprietor) HN Plastic Address: C-295, Mayapuri Industrial Area, Phase-II, Mayapuri, New Delhi – 110064 T: 08071807999 Contact Person: Mr. Nitin Kumar (Proprietor) Spotlight on Indian Electronics 2018-19 | 232

Blue Chip Companies Connectors & Cables Leading PlayersHarting (India) Private Limited Amphenol Interconnect India Pvt Ltd Protectron Electromech Pvt LtdAddress: 1506, (15th Floor), Statesman House, Products Manufactured: Connectors that include Products manufactured: Connectors and circuitBarakhamba Road, New Delhi - 110001 circular, rack and panel, PCB, power, fibre optics, protection devicesT: 9650634777, 98 113 52 088, RF, audio, back shell, etc Address: NO.44,29th Cross, 7th main,,E: [email protected]; Address: 105, Bhosari Industrial Area, Pune – 411 Banashankari Stage II, Banashankari, Bengaluru -W: www.harting.co.in 026 560070, KarnatakaMr. Abhishek Bimal - Manager T: +91 20 67360304 T: +91-80-26716005/01/02/03/04, E: [email protected] E: [email protected],TE Connectivity India Pvt Ltd W: www.amphenol-in.com W: www.protectron.inProducts manufactured: Board to board Vijay Bhavsar (General Manager – Marketing & Anurag Bhandari, Managing Directorconnectors, cable/wire applied interconnects, Sales)input/output connectors, power connectors, etc Omron Electronics & MechanicalAddress: Shop No. 59/2, Gurudas Heritage Delphi Connection Systems (I) Ltd Components Division, IndiaBlock B, 100 Feet Ring Road, Kadirenahalli, Products manufactured: Electronic and electrical Products manufactured: Connectors, relays,Banashankari, Bengaluru - 560070 connectors, components, systems and modules switches, sensors, etcT: +91-80-40115000; Address: XII/101,thiruvaniyoor Vettickal Road, Address: 6th Floor, B-Block, Sewa Tower, PlotE: [email protected]; Thiruvaniyoor Post Puthencruz Via - 682308, Kerala No.19, Sector-18Udyog Vihar, Maruti IndustrialW:www.te.com T: 0484-6611849; Complex, Gurgaon (Haryana) 122008V Raja, president E: [email protected]; T: +91 80 67096400; W: www.delphi.com E: [email protected],FCI-OEN Connectors Ltd Mr. ANIL. K. PAUL (Supervisor W: www.omron.comProducts manufactured: Connectors including rack Raphael Vinod, Country Business Headand panel, terminal, flat cable, circular, PCB, heavy Phoenix Contact India Pvt Ltdduty connectors, etc Products manufactured: Connectors, cables andAddress: 29/2089, Tripunithura Road, Thykoodam, wires, protective devices, etcVyttila, Kochi - 682019, Kerala Address: A-58/2, Okhla Industrial Area, Phase-II,T: 0484-4090700; New Delhi - 110020E: [email protected]; T: +91-11-30262800;W: www.fci.com E: [email protected],Rajesh Arakkal, General Manager W: www.phoenixcontact.co.in Dinesh Parwanda, PresidentMolex (India) Pvt Ltd Wago Pvt LtdProducts manufactured: Connectors, cableassemblies, fibre optic products, etc Products manufactured: Rail mounted terminalAddress: 6A, Sadaramangala Industrial Area, blocks, connectors, PCB terminal blocks,Kadugodi, Bengaluru, Karnataka 560067 components for automation, etcT: 080-41293500;E: [email protected]; Address: Office Nos 10, 2nd Floor, Near HotelW: www.molex.com Central Park, 1264/2, Shivaji Nagar, Pune - 411004Girish Cherukad, Director T: +91-8888806351 E: [email protected] W: www.wago.com Sachin Prakash Mali Spotlight on Indian Electronics 2018-19 | 233

Blue Chip Companies Security Systems Leading PlayersHoneywell India Alba Urmet Communication & Security Prama Hikvision India Pvt LtdAddress: Unitech Trade Centre, Block ‘C’ 1st Floor, Pvt Ltd Address: 2nd Floor, Siddhivinayak Arcade, AkurliSector 43, Sushant Lok, Phase I, Gurgaon - 122 Address: 275, Udyog Vihar, Phase-IV, Cross Road No.1, Near Kandivali East Station002, Haryana Gurgaon – 122001, Haryana, India (Fatak), Kandivali East,T: 0124-6715000; F: 0124-6715014; E: indiaBD@ T: +91-124-4300 630; F: +91-124-4300 635 Mumbai 400101, Maharastrahoneywell.com E: [email protected]; W: www.albaurmet.com T: +91-22-28469900; E: [email protected]: www.honeywell.com com Axis Video Systems India Pvt Ltd. W: www.hikvisionindia.co.inMatrix Comsec Address: No. 7, “Devdas Manor”, 3rd Floor,Address: 394-GIDC, Makarpura, Vadodara-390 2nd Cross, CSI Compound, Mission Road, Samriddhi Automations Pvt. Ltd.010, India Bangalore-560 027, Karnataka F-365, Sector-63, Noida-201307 (India)T: +91 265 2630555; T: +91 (80) 4157 1222; F: +91 (80) 4150 6468; T: 0120-4518900; F.- 0120-4518926E: [email protected] W: www.axis.com E: [email protected]; W: www.W: www.matrixcomsec.com sparshsecuritech.com Bosch Security Systems IndiaVantage Integrated Security Solutions Address: Post Box No. 3000, Hosur Road, Electronic Eye SystemsLtd Adugodi, 208/3, Savitri Nagar, Near Malviya Nagar, NewAddress: B-5, Sector 7, Noida, U.P. - 201301, Bangalore - 560030, Karnataka Delhi 110017T: +91-120-4632200; M: +91-9990019911 T: +918067521111 T: +91 11 26014845E: [email protected] W: www.boschindia.com E: [email protected]: www.vantagesecurity.co.in W: www.electroniceyesystem.comContact Person: Pramod Verma, Managing CP Plus India Pvt. Ltd.Director Address: A-12, Sec - 4, Noida - 201301 Vintron Informatics Ltd T: 1800 103 0806; E: security_ind@cpplusworld. F-90/1A, Pocket F, Okhla Phase I, Okhla Industrial com Area, New Delhi, Delhi 110020 W: www.cpplusworld.com T: 011-43740015, 011-43740016 E: [email protected] Infotech Ltd. Digitals India Security Products Pvt. W: www.vintroninformatics.comAddress: A-12, Sector 4, NOIDA - 201301 Ltd.T: +91-120-4555666; F: +91-11-46665600 Address: C-22, Sector - 63, Noida - 201301 Zicom Electronic Security Systems Ltdwww.adityagroup.com T: 0120 - 4275850, 4202273; F: 4320751 511-513 Ansal Imperial Tower, 5th Floor, C Block E: [email protected]; Commercial Complex, Naraina Vihar, New Delhi W: digitalsindia.com 110028 T: 096547 00247 W: www.zicom.com Spotlight on Indian Electronics 2018-19 | 234

Blue Chip Companies Resistors Leading PlayersStead Electronic (India) Pvt. Ltd. Omega Product Pvt. Ltd Neotroniks Pvt Ltd1681/20, Mangal Market, Bhagirath Palace, Unit No.50,SDF II, SEEPZ (SEZ ) Andheri ( East ), Address: 1st Floor, Mistry Mansion, 107, M.G.Chandni Chowk, Mumbai 400 096. Road, Fort, Mumbai - 400 023, INDIADelhi-110006 T: +91 - 22 – 28290027; T: (022) 66307244 / 45, 66324681, 40029962 / 63T: 011-23865929, 23862576; M: 98 100 33 554 E: [email protected], F: (022) 40025469E: [email protected]; W: www. W: www.omegaresistors.com E: [email protected], [email protected] W: www.neotroniks.comContact Person: Girish Nangia Elcon India Address: F-1/6 Okhla Industrial Area Phase-I, New O/E/N India LtdCermet Resisters Pvt. Ltd. Delhi 110020 Address: P.B. NO. 1952, Vyttila, Cochin 682 019Address: Gali No. -61 , Ploat No-1 & Shindewadi, T: +91 11 26813898, +91 011 2612036, +91 T: 0484- 2301132, 3014120, 2303709, 2302483Tal. Bhor 98104 66663 F: (0484) 2302287, 2302211Pune - 412205 Maharastra Fax: +91 11 26813896 E: [email protected]: 9975596451/52/53/54 Email: [email protected] W: www.oenindia.comE: [email protected]; W: www. W: www.elcon.co.incermetresistorsindia.com Pankaj ElectronicsContact Person: Pradeep Khadilkr - Director Hi-Tech Resistors Pvt Ltd Address: A - 9, Sector - 67, Noida 201301 Address: Buty Compound, Mound Road T: +91 7840051401/02/03/04Isha Agencies extension, Nagpur 440001 E: [email protected], [email protected] Aggarwal Tower , Pocket O & P , Dilshad T: 0712 2531134, 2533269 W: www.pankaj.bizGarden Delhi 110095 E: [email protected]: 9810882677; T: 011-43089627; E: W: www.htr-india.com Precision Electronic [email protected] Manufacturing Companywww.ishaagencies.net Integrated Electronics Technology Ltd Address: B51, Electronic Complex, Kushaiguda,Contact Person: Arvind K. Sehgal - Director Address: A-218, Road 16/V, Wagle Industrial Area Hyderabad 500062, India. West, Near Bradma India, Thane, Maharashtra, T: +91 40-27126228, 27120283Santron Electronics Pvt Ltd. 400604, India F: +91 40-27126221.F-57, Sec-11, Noida 201301, Uttar Pradesh T: 08071683270 E: [email protected]: 0120-6586754 0120-2523960 E: [email protected] W: www.peccomponents.comE: [email protected]; W: W: www.intronresistors.comsantronelectronics.com Rabyte Electronics Pvt LtdContact Person: Paramjit S. Kochar - Director Keltron Component Complex Ltd Address: F-32, Sector-11, Noida-201301. U.P. Address: Keltron Nagar, Kalliasseri, Kannur 670562 INDIA.Reckon Electronics T: 0497 2780739 T: +91-120-47460003/4 , Dsidc Shed, Complex Old Seemapuri, E: [email protected], [email protected], F: +91-120-4746050Shahdara, Delhi - 110093 T: 22355416; M: [email protected] E: [email protected], [email protected] W: www.keltroncomp.com W: www.rabyte.comE: [email protected]; W: www.reckonresistor.com MFR Electronic Components Pvt Ltd RMC Electronics Pvt LtdContact Person: B.S. Mehta - Proprietor Address: Unit No. 40, SDF II, SEEPZ (SEZ), Andheri (East), Mumbai 400096 Address: Krishna Kusum, #186/A-1, 7th MainKusum Enterprises Pvt. Ltd. T: 91 22 28291316 / 2829 0232 / 28290353 Road Peenya Industrial Area phase III, BengaluruAddress: S - 16 Okhla Industrial Area, Phase - II, F: 91 22 28290821 560058New Delhi -110020 E: [email protected]: 011- 41707273, 26387228 W: www.mfrelectronics.com T: (080) 28393897E: [email protected],W: www.kohmresistor.com E: [email protected], sales@rmc-india. com W: www.rmc-india.com Spotlight on Indian Electronics 2018-19 | 235

Blue Chip Companies Solar Panels, Modules & Cells Leading PlayersTata Power Solar Systems Ltd Moser Baer Solar Group Pintron Devices & SystemsAddress: 78, Electronics City, Phase I, Hosur Road, Address: 43B, Okhla Industrial Estate, Phase - 3, Address: A-10, IIIrd Floor, Temple Colony, Near SBIBengaluru - 560100, Karnataka, India New Delhi - 110020. India Bank, Samaypur (Bawana Road), Delhi-110042T: +91-80-677-2000/3000; T: +91-11-40594444, 26911570/74 M: +91-9891757383, 9999909470W: www.tatapowersolar.com W: www.moserbaersolar.com E: [email protected], [email protected] Person: Ajay Goel - CEO Contact Person: Deepak Puri - MD W: www.pintron.in Contact Person: Parveen GuptaVikram Solar Pvt Ltd Websol Energy System LtdAddress: The Chambers’, 8th Floor, 1865, Address: Falta SEZ, Sector –II, Falta, Village Birsa Swelect Energy Systems LtdRajdanga Main Road, Kolkata - 700107 West , Mouza Akalmegh, P.S Ramnagar, Dist: South 24 Address: “Numeric House”, 3rd Floor, No. 5, SirBengal, India Pargana, West Bengal, India P. S. Sivasamy Salai, Mylapore, Chennai-600004,T: +91-33-24427299, 24427399, +91 4003 0408 T: +91-3174-222932 TamilnaduE: [email protected]; E: [email protected]; T: +91-44-24993266W: www.vikramsolar.com W: [email protected] E: [email protected];Contact Person: HK Chaudhary - Chairman Contact Person: Sohan Lal Agarwal - MD W: www.swelectes.com Contact Person: R chelleppan - MDEMMVEE Solar Systems Pvt Ltd Photon Energy Systems LtdAddress: #13/1, International, Airport Road, Address: Plot No.26, H.No.8-2-603/1/26, Silicon Surana Solar LimitedBettahalasur, Post, Bengaluru-562157, Karnataka, Banjara, Krishnapuram, Road No.10, Banjara Hills, Address: 5th Floor, Surya Towers, Hyderabad -India Near Namasthe Telangana Office, Hyderabad - 500003, TelanganaT: +91-80-43233333, 43233511 500034, Telangana, INDIA. T: +91-40-44665700E: [email protected]; T: +91-40-23331337/1338/1339 E: [email protected], [email protected]: www.emmveesolar.com E: [email protected]; comContact Person: D V Manjunatha - Founder & MD W: www.photonsolar.in W: www.suranaventures.com Contact Person: Gautham Nalamada - Executive Contact Person: Narender Surana - MD Director and CEO Spotlight on Indian Electronics 2018-19 | 236

Blue Chip CompaniesPremier Solar Systems Pvt Ltd Kotak Urja Pvt Ltd ANDSLITE Pvt Ltd.Address: Survey No.54/Part, Above G.Pulla Address: #378, 10th Cross, 4th Phase, Peenya Address: 103-FIE Patparganj Ind. Area, Delhi -Reddy Sweet House, Karkhana Main Road, Industrial Area, Bengaluru–560 058. Karnataka 110092Secunderabad - 500009 T: +91-80-2836 3330 (6 Lines) T: 011-22156913Telangana, india E: [email protected]; W: www.kotaksolar. E: [email protected]; W: www.andslite.T: +91-40-27744415, 27744416, com comM: +91-9490167793, 9885580151 Contact Person: Rajpal S. Negi - DirectorE: [email protected] Maharishi Solar Technology Pvt LtdW: www.premiersolarsystems.com Address: 121, 1st Floor, DLF Galleria Mall, Mayur Oorja SolarContact Person: C Saluja - MD Vihar, Phase-I, Address: G-56,Pankaj Central Market, I.P.extn. Delhi - 110 091 PatparganjJupiter Solar Power Ltd T: +91-9899572238 Delhi - 110092Address: 20-A Ashutosh Choudhury Avenue, E: [email protected]; thermal@ T: 011-43025711Kolkata -700 019, maharishisolar.com E: [email protected]; W: www.oorjasolar.comT: +91-33-40159000; W: www.maharishisolar.com Contact Person: D.K. Varshnei - DirectorE: [email protected], [email protected]: www.jupitersolarpower.com Mitramax Energy Pvt Ltd Easy Solar Solutions Pvt. Ltd.Contact Person: Alok Garodia - MD Address: Deodhar Centre, 424, Marol Maroshi Rd., Address: A-19, 1st Floor, Gali No. 3, Behind Gulab Andheri (E), Mumbai-400059, Maharastra, India Bakery,Indosolar Ltd T: +91-22-28290059, 28292055 Opp. V3S Mall, Laxmi Nagar, New Delhi-110092Address: 3C/1, EcoTech-II, Udyog Vihar, Greater E: [email protected]; W: www.mitramax.com T: 011-42156052; F: +91-11-42418847Noida – 201306 E: [email protected]: +91-120-4762500, 4762500 NEPC India Ltd Contact Person: Lokesh vats - CEOE: [email protected]; Address: No.36,Wallajah Road, Chennai - 600 002.W: www.indosolar.co.in India Primotech Energy Solution LtdContact Person: H R Gupta - MD T: +91-44-28586812 Address: Satyam theater ,Johripur Road, Loni E: [email protected]; W: www.nepcindia.co.in Border,Chemtrols Solar Pvt Ltd Ghaziabad - 201001, Uttar PradeshAddress: Amar Hill, Saki Vihar Rd, Powai, Mumbai Solar Semiconductor Pvt Ltd T: 011-65166461; M: 9811166461, 9643479109– 400072. Maharashtra. India. Address: FAB City, Survey #114/P, Srinagar Village, E: [email protected]: +91-22-67151200 Maheshwaram Mandal, RR Dist 501359, Andhra W: www.primotechenergy.comE: [email protected], solarinfo@ Pradesh, Indiachemtrolssolar.com, T: +91-40-67303000; E: sales@ Solar Corona Energy Private LimitedW: www.chemtrolssolar.com solarsemiconductor.com Address: # 39/21, 19th “A” Cross, Behind CoffeeContact Person: Sharad Saxena - CEO Mr. AKHIL - Managing Director Board Layout Park, Bhuvaneshwari Nagar, Hebbal Kempapura, Bengaluru – 560024, KarnatakaTitan Energy Systems Ltd Waaree Energies Ltd (INDIA)Address: 16 Aruna Enclave, Trimulgherry, Address: 602, Western Edge- I, Off. Western T: +91-80-2233 0430/2233 0431Secunderabad-500015, Andhra Pradesh, INDIA Express Highway, Borivali(East) Mumbai - 400066, E: [email protected]; W: www.coronaenergy.T: +91-40-27791085/0751 Maharashtra, India coE: [email protected]; W: www.titan-energy. T: 022-66444444com E: [email protected]; W: www.waaree.com Indium Projects Private LimitedContact Person: Rao S Y S Chodagam - CMD Address: Jagadish H V(Sales & Marketing Access Solar Ltd Head), 58, Mountain Street, Jayanagar, 1st Block,Selco Solar Light Pvt Ltd Address: Plot No.104, Prashanti Nagar, I.E. Bengaluru - 560011, Karnataka, IndiaAddress: #690, Ground Floor, 15th Cross, 2nd Kukatpally, Hyderabad, Andhra Pradesh, India T: 08071743996, +91-9740788444Phase, J P Nagar, Bangalore - 560078, Karnataka, T: +91 8897453822, E: [email protected]; W: www.indiumsolar.India. E: [email protected], [email protected] comM: +91-8026654509, 99800 55566 www.accesssolar.netT: +91-080-26493144, 65902906 Contact Person: Praveen - Marketing Manager Azure PowerE: [email protected]; W: www.selco-india. Address: 8, Local Shopping Complex, Madangir,com Aditi Solar Pvt Ltd Pushp Vihar,Contact Person: Dr Harish Hande - MD Address: Plot No.17, ALEAP Industrial Estate, New Delhi - 110062, Gajula Ramaram, Qutbullapur (M), R.R.District, T: +91 11 4940 9800, F: +91 11 4940 9807HHV Solar Technologies Ltd Hyderabad–500090. Telengana E: [email protected]; W: www.azurepower.comAddress: Nos 31 - 34 & 37, KIADB Industrial Area T: +91-40-20040285Phase 1, Dabaspet, Nelamangala Taluk, Bangalore E: [email protected] Suryamitra Solar Power Systems Pvt.Rural District, W: www.aditisolar.in LtdPin - 562 111, Karnataka, India Address: Sr.52, Soba Park, Flat 7/A, Near GuruT: +91-80-22633700, M: +91-90084-88863 Ganeshnagar, Kothrud Pune - 411038,E: [email protected], W: www.hhvsolar.com T: 8605073172, 9096671968, 9822293267 E: [email protected], W: suryamitrasolar.com Spotlight on Indian Electronics 2018-19 | 237

Blue Chip Companies Semiconductor Leading PlayersAllegro MicroSystems, LLC Mornsun Guangzhou Science & STMicroelectronics Pvt. Ltd.Address: Godrej Coliseum, C-301, 3rd Floor, Technology Co., Ltd. Address: Plot No.1, Knowledge Park III,Behind Everard Nagar,Off Eastern Express Address: No.5, Kehui St.1, Kehui Development Greater Noida – 208016, Uttar PardeshHighway, Sion, Mumbai - 400022 Center, Science Ave.,Guangzhou Science City, T: 9810606004T: +91-22-49222600; M: 9820351107 Luogang District, E: [email protected];E: [email protected], ajay. Guangzhou - 510663, P.R. China W: [email protected] T: +86-20-38601850-8814 Contact Person: Vinay Kumar ThapliyalW: www.allegromicro.com/campPS-ELE-India E: [email protected] Person: Ajay Deshpande W: www.mornsun-power.com Rohm Semiconductor India Pvt Ltd Kelly Zhu - Overseas Marketing Team Address: Unit 4B & 5, Level-02, Bagmane Laurel,Analog Devices India Pvt. Ltd. Block-B, Bagmane Tech Park, C. V. Raman Nagar,Address: RMZ - Infinity, Tower D, Level 6, No. - 3, Microchip Technology Inc. Byasandra, Bangalore-560093,Old Madras Road, Bangalore - 560 016, Karnataka Plot # 149B, EPIP Industrial Area, (1st Phase) T: +91-80-41250811/12; F: +91-80-41250813T: 080-43002320 Whitefield, Bangalore, Karnataka 560066 E: [email protected], [email protected]: [email protected]; W: www.analog.com T: +91 80 30904444; F: +91-80-3090-4080 W: www.rohm.comContact Person: Som Choudhury - Managing E: [email protected]; Contact Person: Daisuke Nakamura - MDDirector W: www.microchip.com Contact Person: Kenny Chow RECOM Asia Pte.Ltd.Atmel R&D India Pvt. Ltd Address: 120 Lower Delta Road #10-03/04Address: 12th Floor, A Wing, Prince Info City II, Freescale Semiconductor (I) Pvt. Ltd. Cendex Centre,283, Rajiv Gandhi Salai Chennai, Tamil Nadu, Address: Plot 2&3, Sector 16 – A, Noida - 201 301 Singapore - 169208600096 T: 0120-3950000 Extn : 2116 T: Tel: +65 6276 8795T: +91-44-45401113 E: [email protected] E: [email protected]: [email protected], [email protected] W: www.nxp.com W: www.recom-power.comW: www.atmel.com Contact Person: Ms. Anjali Srivastava – Marcom Contact Person: Cai Yahui - Marketing Support APACContact Person: Ganesh Kumar - Country Head Fujitsu Semiconductors Asia Pte Ltd. Renesas Electronics Singapore Pte Ltd.Continental Device India Limited Address: Unit No. 3, Level 8, Innovator, Address: 777C, 100 Feet Road, HAL II Stage,Address: C-120 Naraina Industrial Area, New Delhi International Tech Park, Whitefield Road, Bangalore Indiranagar, Bangalore - 560038, Karnataka- 110 028 - 560066 T: +91-80-67208700T: 25796150, 41411112 T: 80-2841-9990; F: +91-80-2841-6660 E: [email protected]; W: www.renesas.E: [email protected], [email protected] E: [email protected]; W: www.fujitsu.com comW: www.cdil.com Contact Person: Mr. Sunil Dhar – MDContact Person: Prithvi Deep Singh - Srtategic Infineon Technologies India Pvt. Ltd.Marketing Director Address: 3rd floor, Block 1, Kalyani Platina Tech Intel Technology India Pvt. Ltd. Park, # 6 & 24, EPIP Zone, Phase 2, Whitefield, Address: 136, Old Airport Road, Bangalore -Cypress Semiconductor Technology Bangalore - 560 066 560017India Pvt Ltd T: +91-80-25131000 T: +91-80-25075222; M: 9611128618Address: #65/2, Bagmane Tech Park,Block ‘C’, E: [email protected]; W: www.infineon. E: [email protected]“Bagmane Laurel”, C V Raman Nagar,Bangalore, com W: www.intel.inKarnataka 560 093 India Mr. Vinay Shenoy - Vice President and M.DT: 91-80-67073999E: [email protected]; W: www.cypress.com Spotlight on Indian Electronics 2018-19 | 238

Moxa India Omron Electronic Components Blue Chip CompaniesAddress: 1st floor, Aswan, 15/6, Primrose Road, Address: Unit No. 401-402, 3rd Floor,PrestigeBangalore – 560001, Karnataka Atrium, No.1, Central Street, Civil Station, Texas Instruments (India) Pvt. Ltd.T: +91-80-4172-9088 Bangalore-560001 Address: Bagmane Tech Park, No. 66/3, AdjacentE: [email protected] T: 80 - 67096400, 67096432; to LRDE Byrasandra, CV Raman Nagar Post,W: www.moxa.com M: 7760122996 Bangalore - 560093Contact Person: Himanjana Raja E: [email protected]; T: 080-25048710; 9945933453 W: www.omron.com/ecb E: [email protected];MediaTek India Technology Pvt. Ltd. Contact Person: Hari Subhas W: www.ti.comAddress: 1A/1, III Floor, SB Tower, Sector 16A, Contact Person: Mr. Ganesh Gopalan - Manager-Noida - 201301 Proximity Instrumentation Controls Mktg & CommunicationsContact Person: Mr. Anuj Siddharth – Marketing Address: Nibelungenstr. 5A, 90530 Wendelstein,T: +91 120 6151000; Deutschland, Germany TOSHIBA SemiconductorF: +91 120 6151001 T: +49 911 995906-0 Address: 3rd Floor, Building No. 10, Tower - B,E: [email protected]; E: [email protected], [email protected] Phase - II, DLF Cyber City, Gurgaon-122 002,W: www.mediatek.com W: www.pic-gmbh.com Haryana Contact Person- Kai Hold Contact Person: Arun Kumar-Manager- Semiconductor Division T: 0124 - 4996600, (10 Lines); M: 9810121489 E: [email protected], [email protected] W: toshiba.semicon-storage.comNXP Semiconductors India Pvt Ltd Radius Industries Vishay Components India Pvt. Ltd. Address: S-57, Functional Industrial Estate Phase- Address: #408, Prestige Towers, 99 ResidencyAddress: Information Technology Park, Nagawara II, Okhla Industrial Area, New Delhi - 110020 Road,Village, Kasba Hobli, Bangalore – 560045, T: 011-26386843, 26383057; Bangalore - 560 025, KarnatakaMaharashtra M: 9312068847; T: 91 80 67640000T: 080-40240000, 40248168; F: 26389666 F: 91 80 67640010M: 9900633331 E: [email protected], [email protected] E: [email protected]: [email protected]; W: www.nxp.com W: www.radcomsemi.com W: www.vishay.comAddress:Contact Person: Ashok Chandak - Senior Director Contact Person: Mr. R K Asthana - Vice President Contact Person: Laura Qiu - Sr Manager, Marcom Asia Soldering & Desoldering Leading PlayersAdvance Tech Services (P) Ltd. Sumitron Exports Pvt. Ltd. Inde EnterprisesAddress: 709-710, GD-ITL Towers, B-8, Netaji Address: No. F19/1,Sector 8,Rohini, Near M2K Address: 745, Sector 8-B, Chandigarh 160009Subhash Place, Pitampura, New Delhi - 110034 Cinema Hall., T: 07009246304; M: 9316134502T: +91-11-47002024 - 27; Delhi - 110085. E: [email protected]: +91-11-47002029 T: +91-11-43824444, 41410631; W: indeonline.inE: [email protected] F: +91-11-41410494 Contact: RomeshW: www.advancetechonline.in E: [email protected],[email protected] W: www.sumitron.com Contact Person: Sumit Jain - Director Spotlight on Indian Electronics 2018-19 | 239

Blue Chip Companies Vineet Electric Company (siron) Bajaj Insulation Co. Address: 19/4, Oberoi Compound, Dilshad Address: 520 A/12, Ganpati Rolling MillBlue Sky System Pvt Ltd Garden, Industrial Area, Opposite Dilshad Garden Compound, North G. T. Road Indl. Area, DilshadAddress: A-53/2, Amritpuri - A, Near ‘A’, Block Metro Station, Garden, Opp. Mansarover Park Metro Station,Market, East Of Kailash, New Delhi - 110065 New Delhi - 110095, Delhi - 110095T: 011 2623 9410; M: +91-9810528883, +91-9899704210; T: +91- T: 011-22135113, 64635113;E: [email protected]; 11-43501883 M : 9871014990, 99111135970W: www.blueskysystem.com W: www.siron.in E: [email protected]; Vaibhav Vineet (Proprietor) W: bicsolder.comMax Technology & Co.Address: 366, Ahmed Mansion, 1st Floor, Mectronics Marketing Services Khanna Traders & EngineersLamington Road, Grantroad (East), Mumbai - 400 Address: 535,2nd Floor,Functional Industrial Address: CB - 105, Ring Road, Naraina, New007, Maharastra Estate, Patparganj Industrial Area, New Delhi - Delhi-110028T: +91-22-23821313, 23841313, 6658 6393; 110092 (India) T: +91-11-25778134, 25778164, 25778167F: +91-22-6633 3729; M: +91-9810335220; T: +91-11-43041581, F: +91-11-25778134E: [email protected], [email protected]; 42208256 E: [email protected];W: www.maxtechnoindia.com E: [email protected], manish@ W: www.bondsolder.in mectronics.inMetro Electronics W: www.mectronics.in25/109, Sector-24, Shrinagar Society (G.H.B.), Manish AgrawalGandhinagar – 382024. Gujarat, INDIA.T: +91 79 23288929 (O)M: +91 9712336798, +91 9879267609, +919913564094E: [email protected] | Leading PlayersHema Automation G. M. Industries Smart Power SystemsAddress: 1022, 1st Floor, World Trade Centre, Ring Address: C -52 Mayapuri Phase 2, Near SBI Address: A-118, Oshiwara Ind. Centre Link Rd.,Road, Behind DD Motors, Goregaon (West), Mumbai - 400 104. IndiaNear Udhna Darwaja, Gujarat 395002, India Delhi - 110064 T: + 91-22-2876 3108;T: +91-261-3040838 M: +91-9899220268 F: + 91-22-2876 3921E: [email protected] W: www.godmotherindustries.com E: [email protected]; W: www.smpsindia.comW: www.hemaautomation.com Mr. Wasim Akram Saifi M.R. Power Tech Pvt. Ltd.Paracal Enterprises Jaggi Electronics Pvt. Ltd Address: Jogani Industrial Complex, Bldg No. 6,Address: No. 16, Eastern Apartment, Samarth Address: B- 249, Shivaji Vihar, Rajouri Garden New Grd. Floor, Unit no. 13, Sion Chembur Road, NearRamdas Nagar, Navghar, Vasai Road (East), Thane Delhi - 110027 ATI, VN Purav Marg, Chunnabhatti, Mumbai - 400- 401210, Maharashtra T: +91-11-25411504 022, MaharastraT: +91-8080106484 W: www.jaggielectronics.co.in T: 022-24052584/85E: [email protected]; Gurdev Singh Jaggi, Managing Director E: [email protected]; W: www.mresmps.comW: www.paracal.co.in Protek System Power PulseGayatri Enterprises Address: B-152, DDA Shed, Okhala Phase-II, Address: E-128, 1st Floor, Dilshad Garden,Address: Unit No. 59, New Modella Cooperative New Delhi-110020, India Industrial Area, Delhi - 110095, IndiaPre. Society Limited, Padwal Nagar, Wagle Estate, T: 011-46527100, 46528100 T: +91-11-22591506; M: +91-9810676780Thane (W) - 400604, Maharashtra, India W: www.proteksystem.co.in E: [email protected], sales@T: +91-22-25803695 powerpulseindia.comE: [email protected]; Dyna Hitech Power Systems Ltd W: www.powerpulseindia.comW: www.powertronsmps.co.in Address: Dyna Business Park, Plot A-57, Street No 1, Andheri (E), MIDC. Mumbai 400093, Maharastra NHP Power Systems LLPOdyssey Technologies Limited T: 022-61274858 Address: NHP House, Plot No. 8, Sub Plot No.Address: 5th Floor, Dowlath Towers, 63,Taylors E: [email protected]; 8, Ramtekdi Industrial Estate, Hadapsar, PuneRoad, Kilpauk, Chennai - 600 010 W: www.dynahitech.com 411048, Maharashtra,T: +91 44 26450082, 26450083 T: +91-20-26871380, 26871390, 26810154,F: +91 44 28271559 26813653E: [email protected]; [email protected] E: [email protected]: www.odysseytec.com W: www.nhpelectronics.com Contact Person: H.Y.Mullad. Spotlight on Indian Electronics 2018-19 | 240

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