electronics india the second sunrise. content why india? emerging opportunities policy environment
TRANSCRIPT
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Electronics India The Second Sunrise
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Content
• Why India?
• Emerging Opportunities
• Policy Environment
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Why India ?
1. Huge Market
2. Large Talent Pool
3.Conducive Policy
4. Low Operating Costs
4 Big Reasons
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Electronics Market in IndiaBurgeoning Needs, Emerging Opportunities
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2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-200.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
32.5
99.5
69.6
400
Dem
and
& P
rod
uct
ion
Year
Demand CAGR – 24.4%
CAGR – 37%
CAGR – 15%
Values in US$ Bil
Demand & Production Trends for 2020
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Electronics Market by segment
SegmentMarket Size *
Telecom Equipment 34Laptops, Desktops, Tablets
34LED 35Consumer Electronics 29Set Top Boxes 10Automotive Electronics
10Medical Electronics 8.5
India: 2020
* US$ Billions
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Conducive Policy Environment Infrastructure, Incentives, Innovation
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National Policy on Electronics, 2012
Holistic, Investor-friendly, Market-driven
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“To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market”
Investment : US$ 100 BilProduction : US$ 400 BilEmployment : 28 Mil
NPE Vision 2020
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•Setting up of Semi-conductor Wafer Fab in India
I
•Preferential Market Access
II
•Modified Special Package Incentive Scheme (M-SIPS)
III
•Electronics Manufacturing Cluster Scheme (EMC)
IV
•Electronics Development Fund (EDF)
V
•Mandating Safety Standards
VI
•Human Resource Development
VII
NPE 2012 : A Holistic Approach
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•Subsidy upto ~USD 10 mil per 100 acres of land
•Applicable to both Greenfield and Brownfield projects
•Targeting 10 Clusters in 2013, and 200 by 2020
Electronics Manufacturing Clusters
Infrastructure Development• Roads• Power• Water• ETP’s• Testing facilities• Social Infrastructure
Subsidy of 50-75%
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•Reimbursement of CVD/excise for capital equipment in non-SEZ units
•Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs
•Available for entire value chain of identified electronics products
• Incentives available for 10 years from the date of approval
Substantial CAPEX subsidy
Subsidy of 20-25%
Modified SIPS
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• India : Latest destination for Chip mfg. based on strength of Chip design
• Global responses sought in the form of EOI to setup Fabs
• Leading players have expressed interest
• Partners for Fab project to be finalized soon
Semiconductor Fab
FAB in India
Decision by May 2013
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• Preference to domestically manufactured electronic
goods in
• Government procurement
• Electronic goods having security implications
• Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.
• Enabling framework
• WTO compatible
• No discrimination between foreign and Indian companies
Preferential Market Access (PMA)
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EDFDaughter fund
– infra
Typical Daughter
fund
Daughter fund -Innovation
Typical Daughter fund
Typical Daughter
fund
Electronics Development Fund (Proposed)
Size of EDF
US$ 2 Bil
• Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors
• Comprises of “Daughter Funds” of size US$ 20 Mil -100 Mil
• Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions
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• 15 electronics products notified under safety standards on October 3, 2012
• Allows Self registration
• BIS accredited labs to test the goods
Mandating standards
Order comes into effect from
July 3, 2013
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Export Incentives on FOB Value
Export Incentives
2-5%
• Focused Product Scheme -2% duty credit script
• Special Focused Product Scheme-5% duty credit script
• Focused Market Scheme
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• Electronics and Telecom Sector Skill Council set up
• 31 ICT and Electronics Academies-Scheme under approval
• Skill Development for 1 mn persons
• Special Manpower Development Programme- Phase III for VLSI and chip design for 10,000 students .
HR Initiatives
PhDs in Electronics by 2020
2500 annually
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Electronics?
Think India !