India Electronics and Semiconductor Association () & MMI Extends a Warm Welcome to All the Guests, Delegates and Media representatives to DEFTRONICS conference and Exhibition is committed to work together with the key stakeholders to realise the vision of Development and Growth of Electronic Systems Design & Manufacturing (ESDM) sector with focus on Defence, Aerospace and Internal Security. 1
Potential for $400 Bn revenues in next 10 yrs ESDM imports in India can exceed oil imports ESDM manufacturing can become 10% of GDP National Security & self reliance in defense & telecom Industry with the largest growth potential ESDM products are used across many sectors No domestic industry, despite having large talent pool & a large domestic market Current base is only of low value-add manuf. Currently it is <3% in India; In China >20% Large potential to increase value-addition Communication and Strategic Electronics are key for protecting national security Can create over 27.8Mn new jobs Inclusive - Will create high-end, mfg & semiskilled jobs in next 10 years. SME s and Startup s can flourish. 3
Focus on Manufacturing with Value-addition : Need clear Strategy 30-65% 30-50% Domestic Investment Focus Leverage our strengths in IPR, R&D, System design, software & Fabless chip capabilities HAS DONE EXTENSIVE WORK ON ESDM POLICY INITIATIVES AND EXECUTION. Long-term benefits LEVERAGING THE CREDENTIALS AND REACH, IT S TIME TO CREATE FOCUS ON DEFENCE, AEROSPACE AND INTERNAL SECURITY AS ONE OF THE STRATEGIC VERTICAL FDI Focus 5-20% Invite top foreign manufacturers Create common back-end of key components, EMS for the entire ESDM industry
Triggers for Growth potential in Defence, Aerospace and Internal Security sector Electronics as Enabler All equipment's reply heavily on electronics Market Size 100K Cr. Capital spend. CAGR 11%. 30K Cr : Electronics. 70% Import. Policy initiatives Offset, DPP, FDI. MSIPs, PMA, EMC s. Local Competence Electronics Design and Engineering. Employment Strategic Importance Import Substitute, Self Reliance and Export Potential 6
ESDM Strategic Opportunities in the Defence, Aerospace and Internal Security: Potential of high value add and employment of 2 lakhs in short term India recognized as a global player in software, however lags in hardware : 70%+ of Hardware is Import. DAIS Electronics Market size of 30K Cr in 2014 and growing with CAGR of 18%. Potential of 200K Cr. In 5 years. Employment opportunity of 2 Lakhs in short term. High Mix Low Volume opportunities can leverage ESDM competence in India. Key Opportunities Radio and Communication Systems: - V/UHF Transmission and receive systems - Emergency radio systems - Telemetry systems and data networks - ODL systems - Encryption and De-encryption Systems Avionics: - Mission computers - Radar systems - Sensors - MIL Bus 1553B, - ARIN 529C and MIL 1776 - Navigation Systems - Weapons control Systems Radar Systems: - Fire control radar - Waether radar - Missile radar - Identification friend or foe (FIF) - Laser systems - Emergency Systems - Ground Proximity systems - Optical Radar Systems PwC Presentation on A&D DEFTRONICS 2014 2014 7
Strong Design Led Make in India Ecosystem with Private Sector Participation Required to Boost India s Aerospace, Defense and Internal Security Sectors 8
DEFTRONICS Discussion sessions focus on Defense, Aerospace & Internal Security R&D and Innovation and Future Technology Trends Opportunities and Challenges of Indian Start-ups Defense Procurement Policy (DPP) Defense and Aerospace Manufacturing, EMC s and MSIPs. MAKE program of MoD Foreign Direct Investment (FDI) Buyer-Seller Meet Summary & Recommendations 9
KEY PARTICIPATING COMPANIES @ DEFTRONICS 2014
Policy reform is needed to promote the ESDM sector and provide sufficient impetus for foreign OEMs to set up base in India Increase the FDI cap beyond 49% for ESDM in A&D to facilitate TOT Reintroduction of services as an eligible offset avenue Flexibility to OEMs for offset allocation to IOPs Fast-tracking of offset banking procedures Deemed export status for offset products supplied for use in India Reduce ambiguity and define timelines for the issue of industrial licence Encourage R&D Profit based incentive in ESDM sector PwC Presentation on A&D DEFTRONICS 2014 2014 17
THANK YOU Strong Design Led Make in India Ecosystem with Private Sector Participation Required to Boost India s Aerospace, Defense and Internal Security Sectors 12