VOL XXIV, ISSUE 09

15 May 2023

Industry Scan

      By 2026, India's Semiconductor Market Would Reach $64 billion, says IESA and Counterpoint

A joint survey report by India Electronics & Semiconductor Association (IESA) and Counterpoint Research has now stated that the market for semiconductor in India is very likely to reach $64 billion by the end of 2026, which is three times more than that of 2019 when the market stood at $22.7 billion. The survey report also revealed that industrial applications and telecom stacks in the country will contribute two-thirds of the entire market share. In India, the manufacturing of chips will be spearheaded by export and domestic markets with huge demand from the consumer electronics, telecom, IT hardware, and industrial sectors.

Source: https://circuitdigest.com/, May 10, 2023

Govt To Invest Almost $2 Billion In Semiconductor Laboratory Mohali: MoS IT Rajeev Chandrasekhar

Rajeev Chandrasekhar on Friday said that the government is investing almost $2 billion in upgrading Semiconductor Laboratory (SCL) in Mohali for research and prototyping. Speaking at the 3rd SemiconIndia Future Design Roadshow at IIT Delhi Chandrasekhar said that a slew of measures for the semiconductor sector has been put in place by the government, including setting up an Indian Semiconductor research center (ISRC) that will work in collaboration with top institutions like the IITs for coming up with cutting edge semiconductor research, modernisation of Semiconductor Laboratory (SCL) and implementation of the VLSI/ semiconductor curriculum that will deliver a talent pool of 85,000 who will create innovative designs and solutions.

Source: https://news.abplive.com/, May 13, 2023

PM Modi meets CEO of Japanese semiconductor firm, discusses tech

Prime Minister Narendra Modi said he had a productive meeting with Toshi Shiabata, the CEO of Japanese semiconductor firm Renesas Electronics and discussed various aspects of technology and innovation in the field of semiconductors. Replying to a tweet by Renesas Electronics, the Prime Minister tweeted, "Had a productive meeting with Mr Toshi Shibata, CEO of @RenesasGlobal. We discussed aspects relating to tech, innovation and India's strides in the world of semiconductors."

Source: https://economictimes.indiatimes.com/, May 14, 2023

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Information Technology

MeitY likely to lead proposed body to fact-check government news

The Centre is likely to opt for a fact-checking team led by the Ministry of Electronics and Information Technology (MeitY) to verify any information pertaining to the government that is published on social media and internet intermediaries, a top official told ET. The three-member body will consist of two officials from the IT ministry as well as a third independent member with expertise in law, social media or public policy, according to the person cited above who said the “ministry-led body will coordinate with other departments of the government on the fact-check”.

Source: By Aashish Aryan and Surabhi Agarwal, https://economictimes.indiatimes.com/, May 15, 2023

47% of Digital Workers Struggle to Find the Information Needed to Effectively Perform Their Jobs: Gartner

A recent survey by Gartner, Inc. found that 47% of digital workers struggle to find information or data needed to effectively perform their jobs. Employees struggle to stay afloat as information and applications flood their digital workplace. Although digital workers are putting in effort to try to efficiently manage this content to try reduce duplication and/or improve knowledge sharing and retention, finding the information needed to do their jobs can often be a challenge. The Gartner survey was conducted from September through November 2022 among 4,861 full-time employees that use digital technology for work purposes, at organizations with 100 or more employees in the U.S., U.K., India and China.

Source: https://indiatechnologynews.in/, May 15, 2023

Ensuring job security and workers’ rights in India’s tech sector

It was Chennai in 2003, and all my classmates were swooning over the actor Siddharth. He had just starred in the hit Tamil film Boys, which boasted a foot-tapping soundtrack composed by A.R. Rahman. Our hostel was a stone’s throw from the iconic Spencer Plaza, where the cast famously danced to the song enukuoru girlfriend venuma (I want a girlfriend). Come evening, my friends and I would laze on the outdoor benches, chatting over filter coffee. Our hostel housed women from colleges across the city, and it was during some of these chats that I learned of the dreams of my classmates who had BTech and BCom degrees and aspired for MBAs, followed by tech jobs.

Source: By Namrata Raju, https://www.thenewsminute.com/, May 12, 2023

Big Tech needs to pay news publishers for content: Govt

BIG TECH content aggregators should give a “fair share of revenues” to digital platforms of print news publishers and there was a need to address the “disproportionate imbalance” in this dynamic, the Government said Friday. In his message read out at the inaugural session of a day-long conclave organised by the Digital News Publishers Association (DNPA), Information and Broadcasting Secretary Apurva Chandra linked this to the “future of journalism.” Flagging the strained financial health of not just the digital news industry but the parent print news industry as well, post-Covid, Chandra said. “For the growth of the news industry, it is important that digital news platforms of all these publishers, who are the creators of original content, get a fair share of revenues from the Big Tech platforms which act as aggregators of content created by others.

Source: https://indianexpress.com/, Jan 21, 2023

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Telecom

High rate of BSNL FTTH disconnections concerning: CMD

Bharat Sanchar Nigam Limited (BSNL) CMD PK Purwar has expressed concerns over the high rate of disconnections of the state-run telco’s FTTH service,as it continues to lose out to private telcos Reliance Jio and Bharti Airtel in the wireline segment, as per a Financial Express report. According to the latest data by the Telecom Regulatory Authority of India (TRAI), wireline subscribers increased from 27.73 million at the end of January to 27.97 million at the end of February.

Source: https://telecom.economictimes.indiatimes.com/, May 15, 2023

For telcos, 5G, data usage ringing in better times

The surge in data consumption and improvement in tariffs over the past few years seem to have effectively stanched the haemorrhaging that India’s telecom sector suffered through fiscals 2017-2019 because of tariff wars, and thereafter payment of adjusted gross revenue (AGR) arrears. Cheap data tariffs, improved upload and download speeds after the launch of 4G services, and a price war that ensued led to a significant rise in data subscription and consumption in India. Between March 2017 to March 2020, data subscribers went up by more than 320 million, while data traffic surged to ~90 billion GBs in fiscal 2020

Source: By Manish Gupta, https://telecom.economictimes.indiatimes.com/, May 15, 2023

Cairo sells 9.5% Telecom Egypt stake in $121 million deal

Egypt sold a 9.5 per cent stake in the state-run Telecom Egypt valued at 3.7 billion Egyptian pounds ($121 million) on Sunday, as the biggest North African economy continues to pursue its reform agenda. The deal to sell 162.2 million shares was executed through the Egyptian Stock Exchange, with each share priced at 23.11 Egyptian pounds, the company said in bourse filing. The government is also offering another 0.5 per cent stake in the firm to Telecom Egypt employees, the company said in a separate filing on Sunday. The deal was first discussed in March and is the first real step in Cairo's programme that aims to improve the country's worsening economy by selling state assets.

Source: By Kamal Tabikha, https://www.thenationalnews.com/, May 14, 2023

Despite talks, no movement on 5G services at airports

Seven months since Reliance Jio and Bharti Airtel started rolling out 5G in India, the impasse over providing the services in and around airports continues despite several meetings between stakeholders. So far, no timelines have been specified around restoration of 5G and when the altimeters in aeroplanes can be changed, which, telcos say, puts them in a tricky situation as they can’t offer 5G in areas where they are witnessing massive demand. Officials aware of the details told ET that at the latest meeting held on April 19, representatives from aircraft makers Boeing and Airbus said altimeters must be changed for a permanent solution around 5G connectivity at airports.

Source: Kiran Rathee, https://economictimes.indiatimes.com/, May 13, 2023

All past tariff plans to be investigated

The Telecom Regulatory Authority of India (Trai) has widened its probe into predatory pricing and unlimited offers of all tariff plans — past and current — of all operators. This will include not only their 4G plans (and 5G in some cases) but even 2G and 3G plans. Officials said the objective is to find out whether the operators have, at some point, violated the regulatory guidelines by offering either “unlimited” plans or indulged in any form of predatory pricing. “It needs to be found out when it all started and who were the first ones to start,” officials said. This will be the first time that the regulator has initiated such a comprehensive probe into all past tariff plans.

Source: By by Rishi Raj, https://www.financialexpress.com/, May 15, 2023

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EV’s & Auto Electronics

NMC to construct special depot for electric buses

The Nashik Municipal Corporation (NMC) has decided to construct a special bus depot for electric buses that will be plying on the city roads. The project cost of the electric bus depot project will be INR 23 crore. The bus depot will have space for 150 electric buses to be parked along with all the facilities required. Electric vehicle charging stations are to be installed so that the electric buses can be charged. Moreover, all the repair and maintenance works of the e-buses will be carried out there.

Source: https://auto.economictimes.indiatimes.com/, May 15, 2023

Explained: Factors Hindering Growth Of Electric Vehicles In India

While electric two-wheeler adoption sees a significant rise in the country, the same has not been observed with EV passenger four-wheelers due to high prices, range anxiety and EV quality being the topmost concerns among the buyers. The high price point remains a significant challenge for automakers looking to launch EVs in India. Range anxiety is also a significant concern for Indian consumers due to the insufficient availability of charging stations. To address this issue, companies such as Sun Mobility, BatterySmart, RACEnergy, Numocity, ChargeUp, Bounce Infinity, and Sheru are offering battery swapping services, primarily for two-wheelers. Following the success of NIO`s battery swapping model, some companies are attempting to replicate it for the Indian passenger car market, according to industry experts.

Source: https://zeenews.india.com/, May 14, 2023

Demand for electric cars is booming, with sales expected to leap 35% this year after a record-breaking 2022

Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to one-fifth and leading a major transformation of the auto industry that has implications for the energy sector, especially oil. The new edition of the IEA’s annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million. This explosive growth means electric cars’ share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is set to increase further to 18% this year, based on the latest IEA projections.

Source: https://www.iea.org/, April 26, 2023

Electric vehicle maker Polestar cuts production guidance, jobs

Swedish electric vehicle (EV) maker Polestar lowered its 2023 production guidance on Thursday and said it would cut headcount by 10%, citing a delayed production start for its Polestar 3 and a challenging environment for the industry. The auto maker said it now expected to produce between 60,000 and 70,000 cars this year, versus the previously predicted 80,000. It has been a tough quarter for EV startups, who face mounting competition from new Chinese players as well as from more established brands. An ongoing price war started by Tesla (TSLA.O), in addition to high interest rates, has put a further squeeze on the already cash-strapped startups. Polestar peers such as Lucid (LCID.O) and Fisker (FSR.N), have both cut their production forecasts, with Lucid in March also trimming 18% of its workforce.

Source: https://www.reuters.com/, May 14, 2023

MG Motor To Invest Rs. 5,000 Cr. To Increase Localization By 2028

The highlight of MG’s 5-year roadmap is their plan to set up a second manufacturing plant in Gujarat that will boost the combined production capacity from 1.2 lakh vehicles a year to 3 lakh vehicles. The second manufacturing plant will also have a dedicated battery assembly unit to bring down the cost of electric vehicle manufacturing and mainstreaming EVs. The carmaker will invest upwards of Rs. 5,000 crorein the Indian market over the course of the next 5 years. Furthermore, the carmaker also aims to have a total workforce of 20,000 employees — both direct and indirect by 2028. By the year 2028, MG Motor India plan to launch 4-5 new products and most of them will be electric vehicles. With this move, the carmaker expects its EVs to contribute to 65-75% of their total sales in India.

Source: https://www.v3cars.com/ By Amit Saraswat , may 15, 2023

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Defence & Solar

Us state secretary expresses concern over china forcefully gathering dna from tibetans in tibet

US State Secretary Antony Blinken has expressed concerns over reports of China forcefully gathering DNA from Tibetans in Tibet, Phayul reported. The US State Secretary added that access to human genomic data opens up a whole other set of human rights concerns and advances in biotechnology have enabled genomic surveillance based on a person's DNA, potentially facilitating abuses. Police in the Tibet Autonomous Region have since June 2016, engaged in a mass DNA collection program targeting men, women, and children across the region. Mass DNA collection appears unconnected to any ongoing criminal investigation. Instead, our research suggests that mass DNA collection is a form of social control directed against the Tibetan people, Citizens Lab, a civil society organization stated, according to Phayul.

Source: https://www.indiandefensenews.in/, May 14, 2023

Hal to replace aluminium control rods of advanced light helicopters with ones made of steel

An implement weighing a few kilograms (and also, not very expensive) in a 5 ton helicopter does not sound like much, but the control rod of the Advanced Light Helicopter or DHRUV has been causing problems in recent months reported TimesNow. A Navy DHRUV ditched into the sea in March this year and a Coast Guard version also went down soon after that. Then, there was an Army ALH crash in Kishtwar this month. Many of the problems appear to be traced to the control rod of the chopper and the metal that is used to manufacture it. So far, the DHRUVs the armed forces have (about 140 with the Army, 70 with the Air Force and 20 with the Navy) have had aluminium control rods. But now, Hindustan Aeronautics, the original manufacturer of the helicopter, after discussions with the armed forces officials have decided to replace the aluminium control rods with ones made of steel.

Source: https://www.indiandefensenews.in/, May 14, 2023

Centre Approves Indigenisation Of 928 Defence Items

Rajnath Singh, the minister of defence, approved the fourth Positive Indigenisation List (PIL) comprising strategically significant Line Replacement Units (LRUs), Subsystems, Spares, and Components. High-end components and spare parts with an import substitution value of Rs 715 crore are included in this approval. These steps have been taken, according to the Ministry of Defence, to promote “Aatmanirbharta” in the defense industry and reduce imports by Defence Public Industry Undertakings (DPSUs). The official stated that they will only be purchased from Indian manufacturers. The ministry stated that the previous three PILs involving LRUs or Sub-systems, Assemblies, Sub-assemblies, Spares, and Components that were issued in December 2021, March 2022, and August 2022 consecutively, are being continued by this fourth list.

Source: https://www.punekarnews.in/, May 14, 2023

World endorses india's foreign policy, supports its war against terror in j&k

The world rejected the Pakistan propaganda when New Delhi announced its decision to scrap Article 370, a temporary provision in the Constitution, in 2019. Now, it has not paid any attention to Pakistan’s tantrums, which it has thrown ahead of the G20 meeting slated to be held in Srinagar on May 23 and 24 this year. Pertinently, India’s independent foreign policy even earned appreciation from a detractor like former Prime Minister of Pakistan Imran Khan. Khan praised Prime Minister Narendra Modi-led regime for taking the decisions in the interest of its citizens. He announced that Pakistan was a slave to the West and was unable to take fearless decisions for the welfare of its citizens.

Source: https://www.indiandefensenews.in/, May 14, 2023

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Consumer Electronics

VMI Launches Skyball to Disrupt Indian Consumer Electronics Market with Innovative and Affordable Smart Devices

Homegrown company, Videomax International Pvt. Ltd (VMI) has announced the launch of Skyball, a new-age Home Audio, smart accessories, and Consumer Electronics brand. With a focus on home audio, wearable devices and smart accessories, Skyball seeks to offer consumers a compelling range of innovative and feature-rich products designed to enhance their lives. VMI has committed to investing INR 100 crores in the next three years in Skyball’s growth, with the aim of achieving a turnover of INR 500 crore in the same period. Skyball is targeting a turnover of INR 100 crore this year, reflecting the company’s confidence in the brand’s potential to capture a significant share of the market.

Source: By Narasimha Raju, https://www.cxotoday.com/, May 13, 2023

MEA Smartphone Shipments Fall to Lowest Q1 Level Since 2016

Smartphone shipments in the Middle East and Africa (MEA) region fell 11% YoY and 3% QoQ in Q1 2023 to reach the lowest Q1 shipment level since 2016, according to the latest research from Counterpoint’s Market Monitor Service. Much of the prevailing economic woes of the region continued, including high inflation rates, local currency depreciation and weak consumer sentiment. Smartphone OEMs were stuck in low gear as inventory correction, channel efficiency and cost cutting continued to be the main themes in the region. Despite the gloomy tone, there were early signs of stabilization towards the end of the quarter. For instance, most OEMs saw encouraging sell-out numbers due to the Ramadan and Easter sales promotions.

Source: https://www.counterpointresearch.com/, May 11, 2023

Europe Smartphone Shipments Dropped 23% YoY in Q1 2023; Market at Lowest Levels for Over a Decade

The challenging economic climate continued to weigh heavily on the European smartphone market, with shipments declining by 23% year-on-year in Q1 2023, according to the latest research from Counterpoint Research’s Market Monitor service. Inflation, interest rates and energy prices remained stubbornly high, as did the conflict between Russia and Ukraine, prolonging the cautious approach consumers are taking with their discretionary spending. This protracted shrinking of the European market resulted in Q1 2023 being the region’s worst quarter for smartphone shipments since Q2 2012. The cost-of-living crisis continued to pour misery onto European consumers, resulting in a tough start to 2023. There were, however, some pieces of good news: Samsung, despite losing share compared to Q1 2022, successfully launched its latest flagship Galaxy 23 series (outperforming both the S22 and S21).

Source: https://www.counterpointresearch.com/, May 10, 2023

Global Connected Agriculture Node Shipments to Reach 187 Million Units by 2030

Global connected agriculture device/node shipments will grow by 30% annually to reach 187 million units by 2030 from 23 million in 2022, according to Counterpoint’s latest Global Connected Agriculture Market report. The need for connectivity is driven by large farms and livestock, and manpower shortage in some countries. China will grow the fastest over the forecast period to become the top market for connected agriculture products. Further, the connected agriculture market’s crop farming segment is expected to grow at the fastest pace (41% CAGR) during 2023-2030, followed by drones and robots, tractors, and livestock monitoring. Connected agriculture, also known as smart farming or digital farming, refers to the use of technology, such as sensors, drones and other digital tools, to optimize agricultural production.

Source: https://www.counterpointresearch.com/, May 04, 2023

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EMSIF

(Special section of the MSME related news under ELCINA Micro & Small Industry Forum)

MSME loans up, but for 19% units repayment a concern

Loans to small and medium industries in Goa grew by nearly 30 percent in the quarter ending March 31, meeting one of the targets set by the PM’s task force committee on Micro, Small and Medium Enterprises (MSMEs). Worryingly, the quarterly data released by the Reserve Bank of India shows that the number of MSMEs that can’t repay these loans has also increased from 8,548 in March 2022 to 11,709 in March 2023. The data shows that while Rs 451 crore in loans was to be recovered from the stressed MSMEs in March 2022, the amount has now increased to Rs 710 crore as of March 31.

Source: https://timesofindia.indiatimes.com/, May 15, 2023

New MBA programme in MSME Management launched by MSME Min’s NI-MSME and B-school ASBM

NI-MSME (National Institute for Micro, Small and Medium Enterprises), a statutory body under the MSME ministry in partnership with Bhubaneswar-based B-school ASBM University has launched a new residential MBA programme in MSME Management. The programme will begin in the 2023 academic session. “This is first of its kind (management programme) with a judicious blend of hands-on experience and exposure to MSME functioning. This is in line with National Education Policy, 2020,” NI-MSME said in a statement. The selected students for the two-year programe (four semesters) will be provided education loan under the Star Vidya National Scheme by the Bank of India for which the latter has already recognised ASBM University.

Source: https://www.financialexpress.com/, may 14, 2023

Government procures 42 per cent more than the set target from MSEs under the Public Procurement Policy

The government has spent Rs 60,432 crore on procurement from MSEs under the Public Procurement Policy, a whopping 42 per cent more than the set target, tweeted MSME minister Narayan Rane on Friday. The Tweet read, “Through the Public Procurement Policy, the Central Government is promoting small-scale enterprises by purchasing the products of MSEs. In the financial year 22-23, the government spent 60432 Cr. (42% more than the target). Our government is creating a simple and transparent environment for MSMEs.”

Source: By Girish Khurana, https://www.financialexpress.com/, May 12, 2023

‘Rationalising, digitising, decriminalising regulations key to ease of doing business for MSMEs’

India’s Micro, Small, and Medium Enterprises (MSME) sector employs more than 110 million people and covers over 63 million MSMEs. The micro segment alone accounts for 99 per cent of the total enterprises and 97 per cent of the total employment. MSMEs are a critical pillar of economic growth for remote and backwater areas, with 51 per cent of the enterprises belonging to rural areas. The significance of these establishments cannot be understated, and as such, it is imperative to understand the challenges and obstacles they face. With over 99 per cent of MSMEs being micro-enterprises, it is not surprising that most MSME owners belong to rural and education-deprived backgrounds.

Source: https://www.financialexpress.com/, May 13, 2023

The new foreign trade policy is a watershed moment for MSMEs

The newly launched Foreign Trade Policy (FTP) by the Directorate General of Foreign Trade is the most significant one yet. While multiple factors such as the pandemic and geopolitical tensions delayed this policy, the new iteration showcases the vision of the government on how exports will take the country to its next phase of growth. This time around, the government has shifted from a five-year policy cycle to a more dynamic setup, one which can be modified based on relevant developments. Stakeholders will now be given their due consideration for any changes as and when required. Further, states and districts will also see wider participation in the consultative process to promote grassroot level exports.

Source: https://www.financialexpress.com/, May 13, 2023

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2022-23 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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FORTHCOMING EVENTS &  GENERAL INFORMATION 

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