CMAIIndo-EUWG Presentation 28.3.2012

8/22/2019 CMAIIndo-EUWG Presentation 28.3.2012

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Meeting of India-EU 7th Joint WG on Information Society

mayti

Presentation

On

Opportunities for industries in the EU region for

establishment of Electronic Manufacturing Facilities in

India

by

NK Goyal, President CMAI Association of India

www.cmai.asia

28th March, 2012


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Advantage India

GDP crossed USD 1 Trillion Mark

4th largest economy in world when adjusted for purchasing power parity

Growing well in excess of 8% per annum for last three years.

Current GDP Growth: 8.5%

USD 380 Billion Projected infrastructure investment in next 5 years

Large Domestic Market:- 560 million consumers in 20-49 age group expected by 2015- 5th largest consumer market by 2025- Increased disposable incomes & changing lifestyles

Human capital:- Third largest pool of scientific & technical manpower

(2,00,000 Engineering Gradates Annually)- Over 500 universities (20,000 colleges)

- Large English speaking population


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Third most attractive FDI

location in the world

(AT Kearney FDI

Confidence Index 2010)

100% FDI permitted in most sectors under

automatic route, includes Electronics systemdesign and Manufacturing (ESDM)

Consolidated FDI Policy available

Government has come up with several

incentives to encourage investment and

attract capital

Right to Information Act

Road map for transitioning to IFRS

Corporate governance initiatives

Information Technology Act

Roadmap for Direct Tax Code (DTC)

and Goods and Services Tax (GST)

India Story

Attractive FDI location

Pro investment environmentCost competitiveness

Transparency & Accountability

CityPrice Levels

( including Rent)Net Wage Levels

New York 100 100Tokyo 88.5 86.4

Taipei 52.2 40.0

Hong Kong 74.1 43.9

Beijing 42.4 14.5

Delhi 34 10.3

Mumbai 30.3 7.6

Source : Prices and Earnings Report August 2010, UBS


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India Story Leaders Speak

We came to India for costs, stayed for quality and are now investing for innovation.

Dan Scheinman, SVP and GM, Cisco Systems Inc.

India is a developing country, but it is developed Country as far as its intellectual

infrastructure is concerned. We get the highest intellectual capital per dollar here..

Jack Welch, Former Chairman, GE

India has evolved into one of the worlds leading technology centers.

Craig Barrett, ex-CEO, Intel Corp.

By 2032 India will be among the top 3 largest economies in the world.

BRIC report, Goldman Sachs

India has taken its place in the world economy. You already have them in cars & autos,

in electronics and systems.

Jamie Dimon, Chairman and CEO JP Morgan

The Indian market has been growing very fast in recent years and we have found that

some Taiwanese businesses are highly complementary to Indian corporations.

Christina Liu, Minister, Council for Economic Planning and Development (CEPD)


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Electronics Systems Design and Manufacturing (ESDM) - A priority sector for India

$45B

+22%

2020E

$400B

2014E

$125B

2009

Current and forecasted ESDM Demand in

India, 2009 - 2020EUSD Billion

Semiconductor content in electronic system

projected to grow from 20% currently to 25% in the

next 3-5 years

15%

6%1%

1%14%

38%

4%

2%

20%

Hi-Tech mnfg.Electronics

Components

Semiconductor

design

Electronics

Mfr. ServicesIT Systems

and hardware

Telecom products

and equipments

Consumer

electronics

Others

Exports

Forecasted ESDM demand by segment,2020E


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Favorable Policy Framework

A Triad of Policies to drive a National Agenda for ICTE

- National Policy on Electronics

- National Policy on Information Technology- National Telecom Policy

Vision

To create a globally competitive electronics design and manufacturing (ESDM) industryto meet the country's needs and serve the international market.

Key Objectives

Turnover in ESDM sector of USD 400 Billion by 2020 involving:

- Investment of USD 100 Billion

- Employment to 28 Million people at various levels

Achieve global leadership in VLSI, chip design and other frontier technical areas andachieve turnover of USD 55 Billion by 2020.

Increase export in ESDM sector from USD 5.5 Billion to USD 80 Billion by 2020


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Government Procurement of Electronics

Multi-billion dollar investment plans in mega programs offer tremendous

opportunities for electronics manufacturing:

- Roll out of Broadband to over 600,000 villages National Optical FibreNetwork (NOFN) Plan approved

- National Knowledge Network with 100GB connectivity for over 20,000colleges and research institutions

- National eGovernance Program spanning Central Ministries and all StateGovernments

- National Mission to provide Computers to over 100,000 schools

- Digitization of Television Broadcast Network by 2015 - significant opportunity

for Set Top Box consumption and manufacturing

- Indian Unique Identification Project (UID) offers tremendous opportunities fortechnology and products (Biometrics, ID Cards, etc.).

- Roll out of 3G, Wimax and 4G


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Setting up Semiconductor Fabs

Strong Semiconductor Design Ecosystem:

- Nearly 2000 chips designed each year; 20,000 Engineers; USD10.6 Billion

Revenue by 2012 (17.3% growth rate)

- All the global top 10 fabless design companies have India operations

- 23 of the top 25 semiconductor companies have strong presence in India

A High Level Committee set up for identifying technology and investors for

setting up semiconductor fabs

- Mandate: Assess and recommend quantum of Government support in

physical / financial terms


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India as a semiconductor destination

EDA / IP OEMsSemi capequipment

Foundry ATMP Fabless

IDMs

DeCore

nanosemi

Valuechain

IDMs

OthersIISc.

IIT

Key players in the semiconductor ecosystem are already building

presence in India Potentialopportunity
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Ireland

UK

Canada

Taiwan

France

China

US

India

3,080

4,000

7,290

12,120

1,540

1,720

1,850

1,990

2,000

2,460

Hungary

India is the leading country for R&D jobs

1 Research related to characterization, fabrication and modeling

Source: IBM Global location trends, ISA-Evalueserve study 2008

India as a R&D Destination

Top 10 countries by estimated jobs in R&D2009

Many

outside Indiaare also of

Indian origin

Malaysia


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India: Telecom Manufacturing Opportunities

Second largest telecom penetration, worlds highest monthly additions.

940 Million Subscribers: . Wireless: 910 Million

Indian Telecom sector to witness huge investments to the tune of USD110

Billion during 2012-2017.

Telecom Subscribers to cross 1.5 billion by 2015 and 5 billion by 2020.

About 25 per cent (Approx. 300 million) would be 3G/4G subscribers, requiring

scaling up the infrastructure.

About USD 70 Billion estimated investment in rolling out green field 2G,

3G/4G and WiMax networks, while USD 25 Billion required to set up an extra

200,000 - odd telecom towers across the country.

The total investment in the pan-India broadband rollout expected to be USD20

Billion while another USD 20 Billion will be invested in augmenting the

transmission network.


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Opportunities for Collaboration

Investments in potential ESDM opportunities in India including technologytransfer

Participation in Centers of Excellence in

Automotive electronics

Medical electronics

Industrial electronics

Others

Joint R&D and innovation to develop products for India market

Opportunity for Venture Capital Funding

Adoption of best practices in e-waste management


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Thank You

[email protected]+91 98 111 29879 NK Goyal
mailto:[email protected]:[email protected]


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There is no ambiguity on India's 1.21 billion population overtaking China's1.34 billion. However, it's not just the population that would see an upward

swing. The economy is set to total $5.6 trillion by 2020 from the present$1.7 trillion, achieving a real GDP growth rate of 9.2 per cent. If the Dun &Bradstreet prediction comes true, India's global economy ranking would be7th from the present 10th

Over the next two years, India could attract FDI worth $ 80 billion,according to Morgan Stanley.

On the military front, India maintains the world's third largest active armedforces and is a nuclear weapon state too. According to StockholmInternational Peace Research Institute, India is the world's largest arms

importer, much ahead of China.

India, the country with high rate of illiteracy, figures among them.

India can as well aim at the Sun with the kind of expertise it has in spacetechnology. Vast pool of talent makes it a possibility. Very few countries

have the ability to launch their own satellites. 14

CMAIIndo-EUWG Presentation 28.3.2012

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