1. India US Joint ICT Working Group New Delhi India, December 13th 2011
Opportunities for US Industries for establishment of Electronic Manufacturing/ testing Facilities in India
Presentation By
NK Goyal, President CMAI
Chairman Emeritus, TEMA
Vice Chairman ITU APT; Chairman, ITPS Dubai
Member, Governing Board Telecom Equipment and Services
Export Promotion Council
India US Joint ICT Working Group
New Delhi India, December 13th 2011

2. CES, 2009 being inaugurated and ribbon cutting at Las Vegas on 8th January, 2009 by NK Goyal with Sir Howard Stringer, Chairman & CEO, Sony Corporation, Mr. Tom Hanks, an American movie star, Mr.Gary Yacoubian, Chairman CEA & President, Myer-Emco AudioVideo, Mr. Gary Saprio, Vice President, CEA, Ms. Qu., Presixdent, CECC China, Mr. Patrick Lavelle, President and CEO, Audiovox, Mr. Peter Lesser, President &CEO of X-10 (USA) Inc, Mr. Loyd Ivey, Chairman & CEO, MiTek Electronics and Communications, Mr. Jay McLellan, President, Home Automation, Inc. (HAI), Mr. Mike Mohr, President, Celluphone, Mr.Grant Russell, President, Kleen Concepts

3. India the Land of Opportunities
Rise of Asia presents tremendous opportunities for growth in this century
India, China are two big markets
US has opportunity to invest in Manufacturing from India to cater the Asian market
Huge Scope in several verticals…Health, Automobile, Aviations, Education, Banking, Commerce
Indian Government coming with new policies to attract investment

4. Infrastructure initiatives
IndiIndi
India StoryaStoy
Robust GDP growth
Large domestic market
560 million consumers in age group expected by 2015
5th largest consumer market by 2025
Increased disposable incomes & changing lifestyles
GDP projected to quadruple to 4 trillion US$ economy by 2020
Source: Economic Survey of India
Human capital
Infrastructure initiatives
Third largest pool of scientific & technical manpower
Large English speaking population
Over 500 universities (18,000 colleges)
1,500 research institutions and 9,000 PhDs
Over 200,000 engineering graduates, 250,000 post graduates and 2,000,000 graduates
Infrastructure spend to be the biggest thrust in coming years
Investment in infrastructure in past five years doubled from 4% to 8% of GDP
US$ 1 trillion investment proposed for

5. Transparency & Accountability Attractive FDI location
India Story
Transparency & Accountability
Attractive FDI location
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)
Third most attractive FDI location in the world
(AT Kearney FDI Confidence Index 2010)
Cost competitiveness
Pro investment environment
City
Price Levels (including Rent)
Net Wage Levels
New York
100
Tokyo
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
100% FDI permitted in most sectors under automatic route, includes ESDM
Consolidated FDI Policy available
Government has come up with several incentives to encourage investment and attract capital
Source : Prices and Earnings Report August 2010, UBS

6. 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 Bn. worth of investment in infrastructure projected in next 5 years

7. Indian Electronic Industry (2009-10) Total $ 23.0 Billion
Source: Dept of IT, Govt of India

8. Forecasted ESDM demand by segment, 2020E
Electronics Systems Design & Manufacturing (ESDM) as a priority sector for India
Current and forecasted Electronics Systems Design & Manufacturing (ESDM) demand in India , E
Forecasted ESDM demand by segment, 2020E
Semiconductor
design
Hi-Tech mnfg.
+22%
$400B
Exports
Electronics
Components
20%
15%
Others 6%
Electronics
Mfr. Services
Consumer
electronics 2%
$125B 4% 1% 1%
14%
IT Systems
and hardware
$45B
38%
2009
2014E
2020E
Telecom products
and equipments
Semiconductor content in electronic system projected to grow from 20% currently to 25% in the next 3-5 years

9. India’s Electronics Potential
World Electronics Industry reported at USD 1.75 Trillion
Largest and fastest growing manufacturing industry
Expected to reach USD 2.4 Trillion by 2020
Demand in Indian market was USD 45 Billion in
Expected to reach USD 400 Billion by 2020
At the current rate of growth, the domestic production can cater to a demand of USD 100 Bn. in 2020
Demand-supply gap of nearly USD 300 Billion by 2020
Consumer Electronics contributes 33%, largest segment
Mandatory Digital TV broadcast Nationwide 2015, significant manufacturing opportunity for STB
PC sales, ITES/Software Exports, Broadband---set to grow

10. India’s e-Governance Plan Giving birth to an entire web-based economy
The size of Indian IT industry estimated as $76 Bn.
National e-Governance Plan (NeGP) announced in May 2006
Massive countrywide infrastructure from remotest of villages
Large-scale digitization of records
27 Mission Mode Projects and eight components
Government`s own State Wide Area Network (SWAN) project
already in place for intra-government connectivity
every block level government office in the country across 27 states is connected
speed is planned to be upgraded to 2 Mbps
Projects are upcoming for computerization including public sector banks & insurance co. with estimated cost Rs 20,000 Cr
In the next couple of years the industry is expected to grow by percent.

11. National Policy on Electronics 2011…Objectives
Achieve a turnover in ESDM sector of USD 400 Billion by 2020
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 2020
Increase export in ESDM sector from USD 5.5B to USD 80B by 2020
Enhance availability of skilled manpower in the ESDM sector
Special focus on augmenting post graduate education
Produce about 2500 PhDs annually by 2020
Create institutional mechanism for developing and mandating standards and certification for electronic products and services
Develop an appropriate security ecosystem in ESDM for strategic use

12. National Policy on Electronics 2011…Objectives …. contd
Create long-term partnerships between EDSM industry and strategic sectors like Defence, Space, and Atomic Energy etc.
Become a global leader in creating Intellectual Property (IP) in ESDM
Increased funding for R&D
Capital for start-ups in the ESDM and Nano electronics
Develop ESDM competencies in sectors like Automotive, Avionics, Industrial, Medical, Solar, Information and Broadcasting etc
Develop electronic products for domestic needs and at affordable price points
Adoption of best practices in e-waste management
Creation of specialized governance structures within Government to cater to specific needs of the ESDM sector
Facilitate loans for setting up ESDM units in identified

13. NPE 2011….Strategies
Facilitating setting up of Semiconductor Wafer Fab & its ecosystem
Providing incentives for setting up of over 200 Electronic Manufacturing Clusters (EMCs) with world class logistics and infrastructure
Benefits of National Investment and Manufacturing Zones (NIMZs)
Establishing a stable tax regime (both at Central and State level) to attract global investments
Focus Products Scheme to have an expanded list of items in ESDM sector including Electronics Manufacturing Services industry
DTA sales of ITA-1 / zero duty electronic products to be treated as physical exports and extended all the benefit of export schemes
Incentives for relocation of electronic hardware manufacturing units in developed countries to India
Globally market chip design, product design and embedded software industry
Promote exports in emerging regions like Africa, South America, and Asia, etc.

14. Electronics in Other Sectors
Automotive Electronics - Develop Centre of Excellence (CoE) for MCUs, MEMS and other advanced electronic devices to consolidate India’s position as one of the global auto hubs
Avionics: Facilitate development of R&D and outsourcing of engineering design and related software in the country
LED: Encourage the use of LED lighting solutions especially in rural markets through innovative products
Industrial Electronics - Develop a CoE for innovation with focus on affordable standardized products for segments such as textiles, food processing, steel etc.
Medical Electronics: Consolidate design and development of affordable medical electronics industry. Develop downstream manufacturing through sector specific cluster.
Solar Photovoltaics: Build manufacturing capacity to support the generation of 20 GW of solar power by 2020
Information and Broadcasting: Create an eco-system for manufacture of set-top boxes and other broadcast equipment in the country

15. Program Management Structure
National E-Governance Action Plan
Industry Initiative
Banking
Insurance
National ID
Central Excise
Income Tax
DCA 21
Passports/Visa & Immigration
Pensions
State Government Projects (Sub Programme)
Land Records
Property Registration
Road Transport
Agriculture
Municipalities
Gram Panchayats
Commercial Taxes
Treasuries
Police
Employment Exchange
Program Components
Integrated Projects
Central Government
Projects
EDI
e-BIZ
Common Service Centers
India Portal
EG Gateway
e-Procurement
e-Courts
Program Management Structure
Apex Committee
Core Policies
Core Infrastructure
Support Infrastructure
Awareness & Assessment,
Organization Structures
R&D
Integrated Services
Technical Assistance
HRD & Training
Integrated Projects

16. India Telecom Investment Opportunities
Second largest telecom penetration, world’s highest monthly additions.
Mn. Subscribers Sep 2011….Wireless ,
Indian Telecom sector to witness huge investments to the tune of $ 110 Bn. during
Telecom Subscribers to cross 1.5 B by 2015 and 5 B by 2020
About 25 per cent ( Appx. 300 million) would be 3G/4G subscribers, which would require scaling up the infrastructure.
About $ 70 Bn. is estimated to be invested in rolling out green field 2G, 3G/4G and WiMax networks, while $ 25 Bn. would be required to set up an extra 200,000-odd telecom towers
The total investment in the pan-India broadband rollout is expected to be $ 20 Bn, while another $ 20 Bn. will be invested in augmenting the transmission network.

17. Indian Software Industry
India's software and services exports are seen rising percent from 2010 to 2012
India's share in the global outsourcing market rose to 55 percent in 2010 from 51 in 2009 and continues to increase.
Nascom forecast export revenue of $68 billion to $70 billion for outsourcing sector in fiscal 2012.
The Indian software industry is remarkable in a number of respects. It is service rather than product oriented, heavily export oriented, and is largely managed by professional and entrepreneurial managements.
India has 16% of the global market in customized software, and that more than 100 of the Fortune 500 had outsourced to India.

18. India push for ICT in Rural Areas
One-third of the people in the Country of 1.2 Bn. population are below the poverty line. Government is pushing ICT in rural areas to empower them so that the Country would grow by 11 per cent against the present 8.5%.
Govt. is focusing to connect 2,50,000 Panchayats in the Country by Total villages are 6,00,000 would be planned to be covered later.
Under earlier plan there are close to 94,000 telecentres at block level each having a computer, a scanner, a printer and technical staff to help villagers with their work with 256 Kbps

19. India Broadband Status
11.87 Mn. Broadband subscribers( 256 Kbps) as on March, 2011.
10% increase in broadband penetration increases GDP of a developing Country by 1.38%.(World Bank)
The penetration would also generate 20 million jobs
Targeting a whopping 14-fold increase in the broadband from 1.1 Crore Subscribers during 2010 to 7.5 Crore by 2012 and 16 Crore by 2014.

20. National Optical Fiber Network ( NOFN)
NOFON envisages to connect 5,00,000 villages with the internet broadband services in the next two years.
This was in response to TRAI, Indian Telecom Regulator proposal to create National Broadband Backbone with around Rs 17,000 Crore laying fiber cables from Universal Services Obligations (USO) funds
The optical fibre network would help various service providers and users get broadband through a variety of wired and wireless solutions.

21. Opportunities for Green Technologies
In spite of having low greenhouse gas emissions per capita, India has already become the 3th largest emitter in the world, according to the International Energy Association. That means immense international pressure to respond.
As per Greenpeace the Indian telecom sector requires 14 billion units of energy and it ends up consuming around 2 billion liters of diesel. Energy requirement projected to reach 26 billion units by 2012 
TRAI, Indian telecom regulator proposed 50 per cent of all towers in the rural areas are powered by hybrid renewable sources by the year Total towers estimated 4,00,000.
Hence large opportunity to develop and cooperate in alternate energy for telecom sector.

22. Solar Energy Potential
Solar energy potential in India is estimated about 70GW by 2022 with Over $42 Bn. investment
India gets 300 sunny days a year that can help generate estimated 5 trillion MW of energy
Govt. Committed to support the solar energy scale-up while also reducing solar costs. Over 1,600 MW of Power Purchase Agreements(PPAs) have already been signed.
Capital costs for solar projects have dropped from INR Crore/MW to INR Crore/MW.
Renewable Purchase Obligation (RPO) is being implemented across the country. Under this Distribution companies and captive consumers will have to source 5% to 15% over ten years of their energy from renewable sources. Within this, there is a solar-specific RPO of 0.25%, slated to grow to 3% over the same time frame. The RPOs will be implemented through Renewable Energy Certificates (RECs)

23. Indian UID Project
India Govt. has started first of its kind project in the world Unique Identification Authority of India (UIDAI)
Over 10 $ Bn. projected investment in National ID and E Governance.
Under this unique identity number will be issued to 600 Mn. of Indian population by 2014.
Single identity paradigm would facilitate giving identity to citizens, enable tracking of end to end service delivery, subscription to new services, help tracking people related with security concerns.
This project offers tremendous opportunities for technology and products. 

24. Mobile Entertainment Opportunities
Asia Pacific has more than 57% share in global mobile entertainment industry.
Global Mobile Entertainment industry expected to grow at CAGR of 19 % from 19 $ Bn. In 2008 to $54bn by 2014.
Mobile music, the largest contributor, expected to grow at CAGR of 13 % from $10bn in 2008 to $21bn by 2014.
Mobile video, the second largest revenue generator, expected to grow 36 % CAGR, from $2bn in 2008 to $14bn 2014.

25. Indian VAS Market
SMS continues as world over highest revenue generator
Ring tones and SMS account for large portion of VAS market. About 8,00,000 ring tones downloaded daily
In India Revenue from VAS presently is 10-14% of total revenue, expected to grow 30% within next 5-7 years.
VAS core component of operators revenue
High end users....video on demand, user generated content ie. interface between web and mobile
Long tail users, who focus on contents subsidized by ads.
Good scope for utility based services eg. Location information, M commerce etc.
Gaming coming up in big way. 30% of games download in Category B/C towns.
Mobile advertisement picking up. Global revenue from mobile advertisement expected to grow $ Mill by 2011
The Indian mobile VAS) expected to reach US$ 5.8 Bn. by 2013, from US$ 2.0 Bn. in Currently,

26. Growing Data Traffic
Mobile data traffic is expected to double every year through 2013.This boost in traffic is eating up bandwidth and providing a threat to everyone's user experience.
Apple's iPhone, and the G1 Google phone, mobile video are creating a dramatic increase in mobile Internet traffic. This increased mobile data usage could eventually suffocate network bandwidth and clog wireless networks.
Increased usage of internet-centric phones, more multimedia rich applications, and the increase in sharing of data using mobile devices provides a threat to existing capacity and operator profitability.

27. Smart Grid Opportunities
India will continue to experience insatiable energy demand growth over the next several years, giving rise to perfect storm.
India offers $400 billion opportunity in building energy infrastructure. From current installed base of 170 GW, India will build up to 316 GW by Additionally, the National Solar Mission is going to add 20,000 MW of solar energy in next 10 years. 
In the same time-frame, the demand gap will grow from 19GW to 103GW, an increase of five times.
In this scenario, all types of energy have opportunities- conventional, nuclear, and renewable including Smart Grid applications.

28. IPv4 Migration to IPv6
India will also face problem of IPv4 addresses and the problem is worsening due to continuous addition of miles users, connected devices and start of 3G and Broadband Wireless Access services.
IPv4 allows 4.3 billion IP addresses whereas IPv6 will enable another 340 trillion, trillion, trillion addresses -- enough to accommodate global Internet demand for the foreseeable future.
India has taken a policy decision that all ISPs and telecom providers will have to be IPv6-compliant by the end of And by March 2012, all Central and State Government Ministries and public sector companies will make the switch to IPv6 Internet protocol based services.

29. Opportunities in Cloud Computing
The cloud computing market in India is expected to grow at a CAGR of 40 per cent by 2015 to Rs 11,200 Crores ( $3 Bn.) from an estimated $66.7 million in 2009, $ 500 Mn. In 2011 driven by cost and performance efficiencies
During the same period, the global revenues from cloud services will grow from $29 Bn. to over $70 Bn.
Some well know cloud services today are Google's search, Apple's iTunes, Amazon Web Services, Microsoft's Azure..
As compute loads grow 10 times, 100 times and even 1,000 times, there is need for new architectures for IT systems.

30. SOCIAL NETWORKING
India currently has 50 Mn. mobile web users. The growing popularity of mobile social networking can also be attributed to youth. Youth being mobile savvy as well as enthusiastic users of social networking sites are setting the trend, attributing to the rise of social networking through mobiles.
Approximately 10 Mn. urban Indians used their mobile phones for engaging in social networking during quarter ending August, 2009, a reach of 3.3% among urban Indian mobile phone user. It also overtook China to take the 3rd place in the global mobile internet industry.
7 out of top 20 sites Indian internet users are visiting are in the arena of social media. 4 out of top 20 most visited sites in India are social networking sites. More than 70% people who are online are engaging with social media on some or the other platform.

31. Mobile Commerce and Social Commerce
About 7 per cent of the overall internet users in India are active on line shoppers. This is likely to grow to 25% in next three years with more mobile users and growing mobile commerce applications on use.
Social commerce is also expected to grow substantially as it could prove to be a key revenue model for social sites. This can be achieved either by creating a universal social currency or through social apps that will either help people transact or provide consumer feedback about a specific product or brand.

32. Fusion Cable Technologies
Demand for access to media and communications on any device has increased, cable operators have embraced innovative solutions that move beyond first-generation, triple-play services and seamlessly fuse communications and entertainment to meet demands for an integrated digital lifestyle and new social media interactions.
Multiparty, multimodal, multimedia services – or 'fused' services – blend high definition voice, video and data to create personalized entertainment services.
New emerging services and technologies required to provide fusion between communications services that allow users to communicate and share content in different ways, regardless of end-user device or access network type.

33. Content Distribution
One of the key digital milestones in 2010 was the streaming of IPL matches on YouTube. This triggered many TV channels into creating their respective channels on YouTube to use them as delivery mechanisms and retain user engagement. Large production houses like Balaji Telefilms as well as startups like CoolDose.com began creating exclusive videos for the web.
Entertainment might take a whole new meaning as more channels are expected to create and produce content specifically for the web. TV sets may transform into internet devices with the ability to navigate and access on demand content.

34. Telecom Equipments Manufacturing
India import 40 to 50 Bn $ of electronic hardware presently.
Demand for telecom equipment in was pegged at Rs Bn. or about 5.5 per cent of the total global demand. This is projected to grow to Rs billion by 2015 and Rs 1, billion by 2020.
TRAI, Indian telecom regulator proposed telecom firms to source 80 per cent of their network equipment and other related infrastructure from domestic manufacturers in a phased manner.

35. Global Mobile Handset Market
Over 2 Bn. people worldwide will own at least one smart phone in 2015, with unit sales growing over 175% from (Parks Associates )
Global mobile handset industry valued at appx $133bn in 2009 likely to grow at CAGR of 17.1% during 2009–14 to reach $293bn by 2014.
India and China largely driving growth of smart phones in Asia Pacific, which constituted 47% of total of 112 Mn. shipments during Likely to grow more than 50% by 2014 with total shipment forecasted 712 Mn.
Smart phones contributed 79 % of profits during 2009 even though market share was hardly 17%.

36. Security Electronics
India offers big market for security related technologies for networks, customers.
The speed with which criminals are capitalizing on world events, growing collaboration among cybercriminals and a growing threat from disgruntled former employees.
Less than 24 hours after the news of Michael Jackson’s death first broke, spammers had sent more than 5 billion spam s, reaching a peak of more than 5% of global spam
The creators of the Conficker worm, which infected an estimated 9 million computers starting late last year, had established an agreement with the makers of the spambot, Waledac, to help monetize eachother’s efforts in a partnership of product and distribution.
Technological innovations are required to address these issues.

37. THANKS 37