1 Meeting of India-EU 7 th 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 28 th March, 2012

2 Advantage India GDP crossed USD 1 Trillion Mark 4 th 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: million consumers in age group expected by th largest consumer market by 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

3 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 system design 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 environment Cost competitiveness Transparency & Accountability City Price Levels (including Rent) Net Wage Levels New York100 Tokyo Taipei Hong Kong Beijing Delhi Mumbai Source : Prices and Earnings Report August 2010, UBS

4 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. “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 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. “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 “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 “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) “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)

5 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, E USD Billion Semiconductor content in electronic system projected to grow from 20% currently to 25% in the next 3-5 years 15% 6% 1% 14% 38% 4% 2% 20% Hi-Tech mnfg. Electronics Components Semiconductor design Electronics Mfr. Services IT Systems and hardware Telecom products and equipments Consumer electronics Others Exports Forecasted ESDM demand by segment, 2020E

6 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) industry to 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 and achieve turnover of USD 55 Billion by Increase export in ESDM sector from USD 5.5 Billion to USD 80 Billion by 2020

7 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 Fibre Network (NOFN) Plan approved - National Knowledge Network with 100GB connectivity for over 20,000 colleges and research institutions - National eGovernance Program spanning Central Ministries and all State Governments - National Mission to provide Computers to over 100,000 schools - Digitization of Television Broadcast Network by significant opportunity for Set Top Box consumption and manufacturing - Indian Unique Identification Project (UID) offers tremendous opportunities for technology and products (Biometrics, ID Cards, etc.). - Roll out of 3G, Wimax and 4G

8 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

9 India as a semiconductor destination EDA / IP OEMs Semi cap equipment FoundryATMPFabless IDMs DeCore nanosemi Value chain IDMs Others IISc. IIT Key players in the semiconductor ecosystem are already building presence in India Potential opportunity

10 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&D 2009 Many outside India are also of Indian origin Malaysia

11 India: Telecom Manufacturing Opportunities Second largest telecom penetration, world’s highest monthly additions. 940 Million Subscribers:. Wireless: 910 Million Indian Telecom sector to witness huge investments to the tune of USD110 Billion during Telecom Subscribers to cross 1.5 billion by 2015 and 5 billion by 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.

12 Opportunities for Collaboration Investments in potential ESDM opportunities in India including technology transfer 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

13 Thank You NK Goyal

 There is no ambiguity on India's 1.21 billion population overtaking China's 1.34 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 be 7th from the present 10 th  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 armed forces and is a nuclear weapon state too. According to Stockholm International 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 space technology. Vast pool of talent makes it a possibility. Very few countries have the ability to launch their own satellites. 14