T&M Industry in India : Modi Govt to follow tightly ?

There are very many expectations with the Indian Economy under new dispensation.There are many people who believe that the full last decade is total washout as far as the growth in the Country is concerned.Yes there was a period within this decade where growth was much better,but for the last three years or more,all the gains were given away to a monster called Fiscal/Revenue Defecit.How there can be the tide reversal -is the major question every common but thinking man is trying to understand and offer solution to the FM Jaitley.

Growth can be a tricky factor to handle. Inflation is the consisten ailment to the Economy.So it is very difficult to lift eye from inflation an look towards Growth only,as we may run into Defecit situation very quicly.People need to have no-dole Opportun,especially for making money,have jobs
have money in hand so they can save as well as invest and Spend.Financial savings and ultimately the
interest/dividend income needs to be generated! So incentivising the fixed market and linking to inflation can be one sop.!

External Sector Management is very interesting.We require the money from abroad both as FII and the FDI ,the start up Capital and innovations and high-tech discovery.Our Gold Import bill,Our Electronics Import bill and our Oil import bill is facing three-way Balancing and Optimisation.Who to get and how much? A calibrated approach where we dont run into problems is required.The money is to be huge,and funded regularly.Both Long Term and Short Term money has to flow.

Massive amount of money is needed for this large Economy,and tending to be third largest by 2030.
Controlling defecits will require large scale Policy tough instances.Subsidies etc will be required to
be cut.Let us all hope,after this Budget Exercise the present Government will show the ordinary person there is light ahead at the end! 

T&M Industry in India : Expectation from Modi Government ?

The  severe stress on the Country Economy is due to several reasons:


-Existing  Food,Fertiliser and Fuel subsidy

-Corporate Exemptions

-Continuous but regularly erratic Fiscal Deficit

-Direct Benefits to Social Sector through Benefit Schemes

-Generation of adequate number of jobs to Graduates in all major subjects

_Quality & Productivity with Profitability enhancements

T&M Industry in India is very small but quite critical to the growth,particularly in high-tec assembly and Production Floors.We need to be very vigilant on that proposals and not land in a situation later
at cross with the Central Routers.We have as the mascot-some of the big names.We recommend the following Exemptions:

-Allow in Defense both Indian and Foreign investments widely.Like the Talibinisation of School and will not be over? Our missile related worry is also important,if the participation starts somewhere in Gujarat S.Do, apragmatic approach is in our thinking and growth.   

By making 100%  investment through  FDI we will stand to gain mili Forest  Young people.Best among all the criticls.Besides Defense let us not spoil the shop if we will. We desrve next 5 years of
Kiddies Cos so you play current! Likewise the arguably chaper will could be Sperficial Treatment .Lets watch this space & ensure all tech sectors build up all assets and    infrastructures in haste.                     

 

T&M Industry in India : Going ahead with Modi Government !

T&M  Industry will be very much impacted by brand new dispensation at the center
and the new model of Government and Governance balance.There is now one month
time since the new Government has taken over and both lot of hyped expectations and
innovative ideas/action plans are floating around! However going by the past track record
of people at the helm of affairs,and the Conditions of Economy this Government was
handed, we can expect some pragmatic but hard steps initially.

The three Fs (Food,Fertiliser,Fuel ) subsidy and the previous Government Populist
schemes of all kind ,and Corporate Exemptions will be on Radar.These populist
programs have contributed to bleeding the country white and the monster of inflation
has caused big havoc.So getting the requisite money for large scale investment both
external and internal is the challenge.Tax policy ,particularly short term measures and
long term vision on Taxes will be important trigger before some Tax/GDP ratio can
be projected for the future.Which will be liberalised from tax point of view and where
saving/investment can be incentivised?

From the T&M and Electronics Industry perspective Local manufacturing through Clusters
and tier2 towns will play a major role.Since the requirement of Components/subassys is
huge (next to Gold& Oil imports) attracting FDI in large measure will be most necessary.
Towards this objective, appropriate business houses,here and abroad need to be given due
sops mainly on land and duties etc.

As we prepare to wait for the first budget some ideas and speculations are in order! 

T&M Industry in India in FY14 : Select Technologies to drive !

Writing this mail as the festival of HOLI is being celebrated in Delhi streets!
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As we approach the tapering of winter and start of Summer the thought goes to what all technologies being touted nowadays can be important to the T&M business. My submission towards that is the following may turn out important:

Cognitive Computing

Internet Of Things

Printed Electronics including 3D and Graphene


I think the M2M related concepts will transform to real products,particularly in very India specific sectors like Power,Education and Healthcare. IoT  is called as M2M because of involvement of various sensors and motors exchanging information on causes and the effects due to these changes on each other.We need to carefully see which of the real life devices can directly communicate this to other intelligently and can make "lean"  connection.Naturally the total universe will be real high and the derivative demand of T&M needed to control should be high too.

Likewise triggering the new startups based on the success of IBM Watson platform ,Cognitive Computing also can give birth to start up companies in India on design and integration as well as the concurrent engineering.All these activities will demand new age T&M having IP type platform for design and verification related needs.

Manufacturing is going to be driven by 3D printing and photolithographic methods.Similar to Semiconductor tests,like the Resistivity and Junction test we will need characterisation T&M .Manufacturing is getting lean and thin.New Designs like Graphene discovered in 2004 will impact some activity in India too,and will definitely see demand for relevant T&M in India. 

T&M Industry in India in FY14 : New Developments as things transition!

FY14  is in the dying months and Election related headwind in
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Yes, the timeline for the 800 million plus voters is officially announced.Today many more newly registering voters will mark their entry,as India decides and selects what kind of Government it really wants.Being a highly individualistic and argumentative society ,everybody opines and fights and somehow settles score through a peaceful ballot.Last 25 years or so we have been having rainbow coalitions,but working.Promised growth to the full potential of the country will happen,through FDI, big infra projects and some reform agenda in more protected sectors.This is more or less settled.

T&M Industry will ride on the back of just concluded Spectrum Auctions ,4G deployments, M&A policy and the activity happening at downstream institutions.Likewise the ESDM clusters and the Manufacturing policy in DeiTY  with emphasis to address import substitution for gappy 300 Billion potential import is envisaged.Hopefully the capital invested by local entrepreneurs and the tech OEMs from abroad will create enough return to the businessmen.FDI in Railways and other technical parts of Economy will also trigger the T&M large scale purchases.

Defense related procurement has again become a huge question mark. Issues are very important.Weak Rupee with few signs of fragile recovery moves,large big ticket import deals and low implementation rate of Capex intensive projects are a definite concern.But with a "stable" central Govt will push the reforms as well as Implementation fillip here.Accordingly over the next 5 year plan (three years overlapping till 2K17) things should change for the better.

In the meantime we should all wish us for ourselves a peaceful well contested democratic process and elect new Government.

T&M Industry in India in FY14 : Opportunities in newly open sectors!

We discussed about the Government of India in two major Manufacturing initiatives opened up the Electronics Design and Manufacturing Clusters. We have covered them well in Aug-September time last year in this blog.Basically we had two Semiconductor fab plants coming up in Greater Noida and Pratij (Gujarat).Investment envisaged is huge-running into 50000 Cr upwards.It will definitely open lot of opportunities for both bundled ATEs and loose portable but specialised T&M. The other one is related to Design and ESDM clusters for small and medium industries where Plug & Play facility can be provided to the Companies.

As an example, Karnataka and Punjab are attracting lot of entrepreneurs from India and abroad (mainly from Asiapac) to set up these design centers.Hardware hubs as well as the software development centers should get triggered by these policies of manufacturing as well as the cluster formations.One can hope there will not be delay in project implementation.Overall the production of Electronic Components in India should give fillip to local manufacturing and import substitution.

Investments are high here, Subsidies are also organised on the capex for integrated circuit manufacturing.One can hope we see the manufacturing takes off and many local jobs get generated here to the professional Engineering staff.

T&M Industry in India in FY14 : Will we see more Global impact?

Welcome to new year 2014.........

This is rather belated entry at the start of 2014.  Reason is rather very incidental.Lot of traveling to the upcountry locations and enjoying holidays in various locations and catching up with many  people
both in profession and general field of Society.

We had been seeing a very soft start to the year as far as the big deals are concerned.There seems to be tighter control on the major Govt deals through the DGS&D while the channel alignment is going on the feverish pitch.Many scrupulous vendors are being shown the door and ethical behaviour is encouraged.This really will augur well for the Industry (which has been largely clean) and development of India specific cost effective products!

We also find there was good uptick on Korean driven R&D and Manufacturing large deals (particularly in the NCR) even though some of the local units of Chinese or European vendors were
lacking in large purchases.There was no factory automation deals since long time and instrument applications related to manufacturing automation were just not develop.That obviously keeps the T&M business at the lower end of the solution vector.Only big portables number constitutes the volume as well as the value! This is definitely a cause of concern.

That brings us to a logical question.Will India never ever move up the value chain and grow the industry to a sophisticated paradigm.We are not sure as the jury is still out.But one thing is sure.The trend has been that over the last decade or so,new vendors-both International and domestic in T&M have appeared touting specialised equipment and created niches.Which of these neo-vendors will graduate to lot of local value addition by way of software or services is the question we need to answer! Lets keep our focus on this in next few blogs.Wishing you all a happy 2014.