Issue 2015-04-3

Disclaimer: This information has been collected through secondary research and ICSI is not responsible for any errors in the same. ICSI—International Chamber for Service Industry.

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ICSI - Contribution to Armed Forces as CSR Activity:ICSI- International Chamber for Service Industry, holds a special regard for the defence personnel & their dear ones by offering various opportunities (Reoccupation and Training) related to the service sector of country's economy. This includes (a) re-occupation for officers and other ranks (b) study and orientation programmes in Service sector during service tenure and (c) various other training and motivational programmes for wives, children and other dependents of defence personnel .

ICSI- directly and through its associates has been helping DGR, since 1988 and was instrumental in introducing Tourism, Hospitality, Service Industry, Management related various programmes, workshops/interface/short term capsules and other programmes from time to time .

1. For Serving Officers- study leaveTrg. Programme- Master's in Service Industry Management (M.SIM) to retiring officers & serving Officers of two years during study leave at its Research & Academic Partner institute- ITFT College Chandigarh ( www.itft.edu.in )

2. For Retiring /Retired Defence Personnel- Tourism Related Projects for the Retiring/Retired Defence Officers/JCOs-Jawans and their equivalents from Farm to Fork , from concept to Implementation.

3. Rural Development/ Adventure Tourism/ Resorts/ Camping/Paying Guest schemes and Leisure activities - Rural Tourism related Projects undertaken by Defencepersonell in their respective native places.

4. Cinematic Tourism related projects- Media Entertainment related work assignments as Location Management and Logistics to crew and its related activities through out India and overseas.

5. Strategically Channelizing Defence Personnel as Trainers/ Master Trainers/Coach to Service Industry . 6. To h e l p D e f e n c e P e r s o n n e l r e o c c u p a t i o n i n H R D a c t i v i t i e s - r e l a t e d t o E d u c a t i o n

Institutions/Universities/Colleges/Polytechnics/Skills Dev. Units and other org.7. Need based-tailor made - Short term/long term capsules for defence personnel to match Service Industry corporate

demand. 8. For Defence Children- After +2 and Graduation, Various Bachelors and Master Degree University Programmes in

Tourism, Hospitality, Airlines, Media-Entertainment, Mobile Computing, IT, Management and other Service Industry related courses with direct Employment.

9. Defence Officers Ladies- Various Online projects/ interface/training programmes related to Events Management, to become Trainer/Master Trainers/Counsellors/ Educator /life Coach /Digital-Social Media Marketing and other service Industry related areas.

Newsletter - April, 2015

Voice of Service Industry - INDIA

Empowering Service IndustryInternational Chamber for Service Industry

Issue 2015-04-3

1 Copyright ©2015 ICSI

Management

MAKE IN INDIA- DEFENCE MANUFACTURING

STATISTICS- Ind ia has

t h e t h i r d l a r g e s t a r m e d f o r c e s i n the world.

- India is one o f t h e l a r g e s t importers of conventional defence equipment and spends about 40% of its total defence budget on capital acquisitions.

- About 60% of its defence requirements are met through imports.

- The allocation for defence in the last budget was approximate USD 37.3 Billion.

GROWTH DRIVERS- Defence Production Policy, 2011 to encourage

indigenous manufacture of defence equipment. Defence Procurement Procedure (DPP) has been amended to provide for the following :

- Preference to 'Buy (Indian)' and 'Buy and Make (Indian)' over 'Buy (Global)'.

- Simplification of the procedure for 'Buy and Make (Indian)'.

- Clear and unambiguous definition of indigenous content.

- Provision for Maintenance TOT to Indian Industry partners.

- Defence products list for industrial licensing, has been articulated in June 2014, wherein large numbers of parts/components, castings/forgings etc. have been excluded from the purview of industrial licensing. The same is available at the DIPP's website, www.dipp.gov.in.

- The defence security manual for the private sector defence manufacturing units have been finalized and put in public domain by the Department of Defence Production. The manual clarifies the security architecture required to be put in place by the industry while undertaking sensitive defence equipments.

- The MAKE procedure, which aims to promote R&D in the industry with support from the government and the placement of orders (if R&D effort is successful), is also being revised to make it more attractive and unambiguous for the private sector.

REASONS TO INVEST- India's current requirements on defence are catered

largely by imports. The opening of the strategic defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets and also aim at global business. Besides helping build domestic capabilities, this will bolster exports in the long term.

- Opportunities to avail defence offset obligations to the tune of approximately INR 250 Billion during the next 7-8 years.

- The offset policy (which stipulates the mandatory offset requirement of a minimum 30% for procurement of defence equipment in excess of INR 3 Billion) introduced in the capital purchase agreements with foreign defence players would ensure that an eco-system of suppliers is built domestically.

- The government policy of promoting self-reliance, indigenization, technology upgradation and achieving economies of scale and developing capabilities for exports in the defence sector.

- The country's extensive modernization plans, an increased focus on homeland security and India's growing attractiveness as a defence sourcing hub.

- High government al locat ion for defence expenditure.

THE GLOBAL DEFENSE LEADERS

Top 50 spend 92 percent of global defense budgetsFif ty n a t i o n s account for 92 p e r c e n t ($1636B) of the world'stotal spending on national defense. (Figure 1) The defensepolicies and programs of these top 50 nations (the "Top50") explain most of the world's defense activity and shapethe global security environment in the broadest and mostenduring ways. The Top 50 nations produce more than 90percent of global economic output and include populationsof more than five billion people across six continents. Within the Top 50, six nations - the United States, China,Russia, Saudi Arabia, Japan, and France - generate60 percent of global defense spending.1 More than 26percent of global defense spending is driven by the nextlargest 24 national defense budgets, with

another 20countries accounting for six percent of the global defensespending total. The remaining United Nations membersaccount for eight percent of global defense spendingoutlays. The dominant position of the Top 50, andparticularly the six largest spenders, decisively shapes thestructure, size, and posture of global military forces.

Top 50 defense spending profiles: Spenders and Economizers

The U.S. defense budget accounts for 35 percent of totalglobal defense spending - fully twice the U.S. share ofglobal gross domestic product (GDP)2 and 10 times theU.S. share of the global population3. The United Statesspends more on defense than the combined defense spending of the next eight nations in the Top 50.

The U.S. share of global defense spending continuesto decline from 40 percent in 2012 to 35 percent in2013, as China, Russia, and other nations increase theirdefense budgets.

Issue 2015-04-3

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Management

M A K E I N I N D I A : S H I P P I N G M I N I S T R Y U R G E S D E F E N C E M I N I S T RY TO O R D E R V E S S E L S FROM DOMESTIC FIRMS.

The shipbuilding industry is riding the 'Make in India' plank to urge the defence sector to order vessels from the domestic companies instead of turning to firms abroad.

The ministry of shipping has written to the defence ministry to encourage Indian shipbuilding sector by allowing domestic firms to build some of its vessels from a total order book that runs into over $92 billion (about Rs 5.7 lakh crore). The shipping ministry is batting for not just public sector entities like the Cochin Shipyard but also private companies including Bharti Shipyard and ABG Shipyard, among others, to promote the entire industry.

The industry has been in the doldrums for the past four years due to a fall in orders from shipping companies. Several companies are undergoing corporate debt restructuring (CDR) or running into severe losses. The majority of the orders with the Cochin Shipyard are from the Navy and Air Force, helping keep the company afloat. The shipping ministry has sought easing of the CDR process to help these companies. "The stressed books of the shipbuilding companies are a big deterrent to getting new orders. We will address that problem," a senior official said. The ministry has also proposed a number of measures to the Reserve Bank of India to enable better access to financing for shipbuilding yards. One of the suggestions is to allow the shipbuilding companies buyer's credit and pre-shipment credit in foreign currency (PCFC). This will help them import raw materials, especially ones not available in India for vessel construction, even without a domestic or export order.

The shipbuilding industry is also hoping to get infrastructure status, which will automatically increase its ability to use extra commercial borrowings. The order book of the Indian Navy includes submarines, frigates, destroyers, aircraft carriers, offshore patrol vessels, corvettes, oceanographic and research vessels, etc.

While orders for commercial ships have dried up, the defence sector's order book has thrived. Indian shipbuilding companies may be given advantages such as first right of refusal or price preference to get ahead of others in getting these orders. But procuring adequate technical expertise in a closely guarded sector like defence could stillput them on a weak footing.

DEFENCE EXPORTS COULD TOUCH $17 BILLION BY FY22: REPORT.

Mumbai: If the government's push to locally manufacture defence equipments fructifies, the sector can fetch close to $17 billion from exports, while it can grow seven times to $41 billion by FY22, says a report.

I n d i a i s t h e world's largest i m p o r t e r o f d e f e n c e equipments with tens of billions of dollars in annual p u r c h a s e s o f critical equipment for the armed forces.

Recently, the government had increased FDI in the sector to 49 per cent and last week Prime Minister Narendra Modi had said that MNCs could go in for majority ownership, provided they transfer the technology.

"Defence and aerospace exports can touch $16.6 billion if local manufacturing is pushed, while total market for domestic players can grow seven times to $41 billion by 2022 from $6 billion in 2014," says a report by Centrum Group.

The report, written by Sandeep Upadhyay, senior vice president at Centrum Group, which was the first domestic investment bank to offer defence sector advisory services in 2011, further said that of the $41 billion market, 60 per cent will be domestic demand and 40 per cent will come from exports.

He also projected $620 billion defence budget between FY14 and FY22, of which 50 per cent would be on capex.

On the total defence budget, Mr Upadhyay said the cumulative defence spend between FY14 and FY22 may touch around $620 billion and capex will be half of it while the spend on new armament could be around $251 billion with imported equipment spend at $146 billion.

The report also foresees that opportunity for domestic companies from arms acquisitions would grow from $4 billion in FY14 to $24 billion in FY22, growing at 23 per cent per annum during the period, as half of the defence equipment is obsolete now.

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Management

RETIRING JCOS TO BE INVOLVED AS TRAINERS, SAYS RAJIV PRATAP RUDYPune: The Ministry for skill development and entreprene u r s h i p w i l l p a r t n e r with the I n d i a n a r m e d forces to utilize skills of personnel below the rank of junior commissioned officer (JCO), who retire at an early age, to create a band of trainers, minister of state for skill development Rajiv Pratap Rudy said here on Friday. "Defence minister Manohar Parrikar has agreed in principle to such a partnership which forms one of our several ideas to overcome the huge dearth of trainers in various skill development programs," Rudy said at the launch of the country's first of its kind 'campus entrepreneurship development and incubation project' at the Savitribai Phule Pune University (SPPU) on Friday. He said, "The Indian armed forces with its 15-lakh strong work force is one of the biggest organizations in the country with apt skills at different levels. The JCOs usually have a service span of 20 years before they retire and most of them take jobs as security persons. Our idea is to use the last one year of their service tenure in training them to become trainers or ensure that they return to their homes as entrepreneurs. On an average 50,000 JCOs retire from the forces every year." The new ministry for skill development and entrepreneurship was established 90 days ago by the Union government with a specific mandate of pushing the target of creating a skilled work force of 30 crore by 2022. Rudy said, "The task is enormous considering the constraints like non-existent resources vis-a-vis funds worth Rs 20,000 per person required for skilling youngsters and standardization, assessment and certification of skill qualifications at different levels. India stands nowhere compared to other countries in terms of the percentage share of skilled population.

While skilled work force account for 47% of China's population, the same in Australia is 60%, in the United Kingdom 68%, in Germany 74%, Japan 80% and South Korea 96%. India has only 2% of its population that can be termed as skilled work force." Rudy cited a United Nations report which states that in the years ahead, India will have the world's largest chunk of young population in the age bracket of 15-35 years at 356 million, followed by 269 million in China, 65 million in United States and 59 million in Pakistan, among others.

BUSINESS OPPORTUNITY WORTH $250 BILLION IN DEFENCE IN 7-8 YEARS: DIPP SECRETARY.

New Delhi: The private sector should e x p l o r e opportunities i n de fence manufacturing as the sector is expected to provide business worth $250 billion in the next seven to eight years, a top government official said today. "How quickly we can use our defence manufacturing sector as that is an early flower to be plucked by Indians. That is a huge area for growth in the future.

"If India is going to import $140 billion in the next seven years, if home land security is going to need a business of another $110 billion, so $250 billion worth business in the next seven-eight years. How quickly we can transform ourselves into a defence manufacturing country is a key challenge to India," DIPP Secretary Amitabh Kant said. He was speaking at an Assocham function here. The government has hiked FDI cap in defence manufacturing sector from 26 per cent to 49 per cent.

"We have opened up defence, railways, insurance and medical devices... That is really opening up of the Indian economy. Other than multi-brand retail, India is the most open economy of the world today," he added. He also said that state government should take lead in improving ease of doing business in the country. The DIPP is in the process of giving ratings to states on the basis of ease of doing business. According to the World Bank report, India ranked at 142nd out of 189 countries in terms of ease of doing business.

Mr Kant said DIPP would rate the states on 98 parameters and by June or July "we are putting a professional agency to evaluate all the states (on these parameters) and rank best and worst performing states.”

He said that by May 31, the states have to undertake steps to improve their rankings.States like Maharashtra, the secretary said, have already started taking steps in that direction."States must become key champions. The real action is in states," Mr Kant said.He added that to boost economic growth, exports and manufacturing have to grow at higher rates. "Exports need to grow at 22-23 per cent per year. Therefore, India needs to become the easiest place to do business in the world," Kant said.Further, the secretary said that there is an urgent need to do away with the complex rules and act on issues such as land acquisition.

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Management

PANCHKULA NEAR CHANDIGARH T O G E T I T S O W N D E F E N C E SERVICES OFFICERS' INSTITUTE.

Panchkula, the satellite town of Chandigarh, will soon have its own Defence Services Officers' Institute (DSOI), on the lines of Chandigarh. Army Chief Dalbir Singh Suhag laid the foundation stone of the institute, which will be set up on the outskirts of the city in Sector 26. The institute will benefit more than 3,000 serving and retired officers sett led here. Haryana Urban Development Authority (HUDA) has provided two-acre land to the Western Command on subsidized rates for the institute. As of now, the defence officers settled in Panchkula have to take the membership of DSOI in Sector 36, Chandigarh. Considering the large presence of Army men in Panchkula, a recreational club or institute for them was a long-pending demand.

During the foundation stone-laying ceremony, army commander of Western Command Lt Gen K J Singh, the chief of staff and a large number of senior Army officers and veterans from Panchkula were also present. Also known as "City of Generals," Panchkula is home to hundreds of officers and war veterans who had been commanders of various vital formations of Army during conventional as well as non-conventional wars. They include former army chief general V P Malik (retd), former vice chief of army Lt Gen Vijay Oberoi, former commanders Lt Gen H S Panag, Lt Gen S R Ghosh, Lt Gen P S Hoon, Lt Gen Deepinder Singh, Lt Gen T K Sapru, Lt Gen G S Sihota, Lt Gen Daljit Singh, Lt Gen Surinder Singh and several others.

The Haryana government had also allotted a plot to former Army chief and Union minister General V K Singh in Panchkula. Besides these officers, there are a large number of Lt General, Major General and other rank officers settled here. Sectors 12, 12-A, 20, 26, 6, Mansa Devi Complex (M D C) have a la rge concentration of Army officers. The decision to allot the land for DSOI was taken in the Civil Military Liaison Conference-2014 held at Western Command. It was attended by the then chief minister too.

Defence sector opening up to startup technology.

Conservative and security-sensitive outfits like India's

armed forces Defence are opening up to explore startup technology. While a startup, has partnered with the Indian Air Force to build mobile air combat games to help enlist the youth, Inforich is helping the navy with technical documentation and Mobiliya is collaborating with the army to provide it with tamper-proof secure mobile phones.

"It was a bit of luck as the tender call came at the right time for us,"saysSidhantRahi, vice president for business development at Threye, which was founded by AnuragRana two years back. Delhi-based Threye has currently developed 'Guardians of the Sky', an air combat game for the Indian Air Force.

Both Rana and Sameer Joshi, creative director in the company, are avid aviation enthusiasts and Joshi is also an ex-Air Force fighter pilot. "We were developing our own game called Operation Morning Glory, which deals with military operations, around the same time that the Air Force released a tender seeking to build a mobile game to excite the youth about the field. Though it was a long shot, we won the tender," says Rahi. According to him, while the defence sector is opening up to startup technology, the slow moving pace in government bodies, and the revenue structure is a hindrance for startups. The game released in two phases is nearing two million downloads today.

Inforich, based out of Thiruvananthapuram, is working with client Larsen & Toubro to enable technical documentation for the Indian Navy on the arrival of all its ships to port. "There is a process of inspection and checks carried out on each ship of the navy on arrival to any port in India. This process, earlier carried out manually, was laborious not just to execute, but also to t r ans fe r the de ta i l s to ano the r por t , " says NishantNambiar, founder of Info rich, which also works in the area of healthcare.

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Information Technology India has reached maturity of tech for defence requirements: DRDO official

India has reached maturity of technology in realizing its defence services requirements and it is necessary to exploit the potential of the private industry to increase the production rate, a top Defence Research and Development Organization official said today.

we have been growing from nowhere. In the last two three decades we have reached the maturity to the international level, almost closer to the international level in terms of technology of aircraft, helicopters and missiles and Unmanned Air Vehicles (UAV)," DRDO Director General ( Aeronautical Systems) K Tamilmani told reporters here.

AeroIndia is an opportunity for India to showcase the strength in the Aeronautical field, he said briefing about the five-day aero show beginning here from February 18, which would be inaugurated by Prime Minister NarendraModi. "Make in India" is the theme of the 10th international edition of the aerospace and aviation exhibition.

He said "now engine technology is one thing we need to focus little more, remaining areas we have reached almost closer to where we need, what India needs to build with the technology available." With Light Combat Aircraft, Tejas, technology is available for any product to be realised for the future for the Indian Defence Services, either Air force or Navy or Army, he said "On helicopter technology - LCA has given us great input to decide whatever type of helicopter we are doing -- whether it is five tonne category or ten tonne category, India is capable of doing. All technologies are available including production technology," he said.

Stating that Unmanned Aerial Vehicle has been a successful programme though started a little late, Tamil Mani said "today all the technology required for the UAAV programme is available."

PM Wants More Technology Transfer From Global Defence Firms.P r i m e M i n i s t e r NarendraModi has asked global defence contractors to transfer more technology to India as part of the lucrative dea ls tha t they win to m o d e r n i s e i t s a r m e d forces.The country's offsets policy, which requires contractors to invest a percentage of the value of the deal in India, will be tweaked to encourage more technology transfer, and less simple assembly or production, MrModi said at the opening ceremony of the Aero India airshow at Yelahanka air base in Bengaluru.

"We have the reputation as the largest importer of defence equipment. This may be music to the ears of some of you. But this is an area where we do not want to be number one," MrModi said before an air display of Indian military planes.

India is forecast to spend $250 billion over the next decade to upgrade its military, which still largely relies on Russian equipment it bought from the 1960s to the 1980s, and catch up with strategic rivals like China. Defence contractors such as Boeing, Lockheed Martin, Airbus and Dassault Aviation have made a beeline to India in recent years in search of deals worth billions of dollars.

MrModi, however, added that India should aim to cut defence imports from 60 to 30 percent in the next five years. It can double its defence output and create hundreds of thousands of skilled jobs as a result, he said. He called for a level playing field between the private sector and public sector firms such as Hindustan Aeronautics, the main beneficiary of India's defence offset requirements, and asked both to step up to the task of meeting India's requirements.

Tata Sons, Reliance Group, Mahindra & Mahindra and Larsen & Toubro are some of the larger private sector firms that have made forays into the defence production market in recent years. They are also likely to benefit after the government in 2014 hiked the foreign investment limit in the domestic defence industry to 49 percent from 26 percent. This has drawn greater interest from international arms suppliers. Public sector firms need "to do much better than they are now", MrModi added.

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Information Technology

FUTURE: The Indian Army's F-INSAS goals

The overarching goals of the F-INSAS programme, which took shape in 2007 after several years of planning, combine a host of soldier-mounted technologies with the aim of creating a new generation of Indian infantry with better communications, lethality, survivability and situational awareness.

The F-INSAS roadmap, laid out by Indian defence officials at the project's outset, states that the new system will be supplied to eight to ten infantry battalions (up to 10,000 soldiers) by end 2015, with all 325 battalions fully upgraded by 2020. "We have put in place an action plan to modernize the armed forces in all dimensions," said India's now former chief of army staff JoginderJaswant Singh back in 2007.

"A project, code-named F-INSAS, has been taken up to train futuristic soldiers, equipped with latest weaponry, communication network and instant access to information on the battlefield. In my view, the next war will be won by the side that is adept at high technology with all-weather fighting capability.”

HI-TECH EQUIPMENT AND ACCESSORIES

In the later stages of the programme, the Indian A r m y i n t e n d s t o c o m p l e m e n t i t s n e w weapon platforms with a r a n g e o f h i g h - t e c h equipment for its infantry soldiers. This equipment includes a new helmet with mounted thermal sensors and night vision, as well as cameras and chemical and biological sensors. The helmet will have an integrated visor with a heads-up display (HUD) capable of outputting images with the equivalent space of two 17-inch computer screens.

Other proposed accessories include a full battle-suit with a bullet-proof and waterproof jacket, health sensors and even solar charging devices. This kind of personal energy generation could be used to power the soldier's HUD and sensor systems, as well as a wrist-mounted Palmtop GPS system that will be used to increase battlefield awareness and act as a networked messaging system between battalions and their commanders.

FUTURE: Indian Army Will Soon be 100% Digital & Cloud Enabled.The modern e-times call for desperate e-measures, say the officials of the Indian Army. We may be looking at the w h o l e s y s t e m g o i n g p a p e r l e s s w i t h h i g h l y encrypted cloud storage being set up. A 100% digital Indian Army, as many may call it will be functional very soon that will have the capacity of protecting a huge amount of database, like the Google database.

With the new cloud storage system, every order will assume a e-format, all the records will be stored on the cloud and hence will be accessible at the official's fingertips from any location. The digitalization does not just mean digitalization of the system, it will also see the army personnel use such e-technology to go about every day's functions. Sources say that with the high bandwidth connectivity, access and transfer of data will be fast and efficient.The Army will also have data-radio that can transmit timely videos of the LoC and any anti-social activities can be prevented and also solved. "The Army has already initiated programme to connect every soldier to its secluded central data bank through hard-wired links," a source confirmed. Now that the e-platform is ready, the question is how useful will it prove to be for the existing soldiers. At present the Army uses the Wide Area Network for communications.

Considering that the Defense (more specifically Air Force) had called for a ban on Xiaomi phones in it's circle, the fact remains that most of the hardware for any technology is made in China, how will the government ensure the data security and integrity.Most of the tech products are made in China and the Chinese hardware companies have proven to be very notorious in the past. However the army officials have assured that the products that are used go through stringent security tests.

In the US, the army stores it's database with the private players, mostly Google Servers. The information is only privy to the US Defense Department and the government spends $612 bn. But however in our case, the government has not specifically said no to private players but we can be pretty sure that the private players will have very little say in persuading the Army to store it's data with them. The United States Army is the most digitalized and aces all the militaries in the world. The next is followed by Russia and China, while India stands at position no.4 which is a great news for all us Indians!

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Information Technology

Keysight Technologies Hosts Aerospace & Defense Symposium 2015Union Minister of State, Ministry of Defence - Rao Inderjit Singh and SudhirTangri, country general manager, Keysight Technologies India Pvt. Ltd at the Keysight Technologies Aerospace & Defense Symposium 2015 organized at New Delhi

K e y s i g h t Technologies Inc. a n n o u n c e d i t s annual Aerospace a n d D e f e n s e Symposium held i n N e w D e l h i hosted the biggest technical gathering of aerospace and defense engineers and scientists who work on cutting-edge strategic electronics in India. The symposium theme "'Focus where it counts"presentedKeysightexpertise in measurement science and test processes to the Indialeaders in aerospace and defense and offered greater insight into system readiness. The symposium addresses innovating advanced test systems and solutions that deliver mission critical results using accurate test and measurement tools. The topics included military communications, electronic warfare and radar systems. Also discussed were emerging test and measurement theories, challenges and recent advances in technology. The open forums at the symposium featured discussions and demonstrations of latest Keysight products and solutions available for aerospace and defense complex system requirements challenges. There wasan extensive product fair, showcasing the latest solutions for aerospace and defense applications.

Keynote speaker at the event was the Union Minister of State, Ministry of Defence - Rao Inderjit Singh. He highlighted the importance of developing home bred technologies in the aerospace and defense sector. He also laid emphasis on the central government's 'Make in India' initiative encouraging symposium attendees to build indigenous and customized technologies.

"It gives us great pleasure to organize the ninth edition of Keysight's Aerospace & Defense Symposium," said Mr. SudhirTangri, country general manager, Keysight Technologies India Pvt. Ltd. "India's aerospace and defense sectors are undergoing tremendous changes in the recent years with the government focusing on building comprehensive made in India defense systems and launching mission critical aerospace projects. Being a global leader in electronic test and measurement, we intend to play a vital role in assisting in the transformation India's aerospace and defense sector."

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Airlines,Tourism and Hospitality

Armed Forces for Skill Development Minister of State ( I n d e p e n d e n t Charge) for Skill Development & Entrepreneurship Shri Rajiv Pratap Rudy has said that the Ministry of Skill Development and Entrepreneurship aims to collaborate with the Ministry of Defence in a mutually beneficial manner, where ex-servicemen could be employed as trainers and assessors in the skill development ecosystem. This would address one of the major problems of lack of qualified trainers at skill training institutes in the country as well as have the dual function of providing an attractive career opportunity for reemployment of ex-servicemen. In a written reply in the Lok Sabha today Shri Rudy said, the Ministry will enable ex-servicemen who already possess focused skills to enter and integrate with the job market through certification of skills under recognition of prior learning (RPL).

India to Train Defence Personnel of 38 Countries: Manohar Parrikar BHUBANESWAR : D e f e n c e Minister Manohar Parrikar on Sunday s a i d I n d i a w a s planning to export defence materials and training military personnel of at least 38 countries.

"At least 38 countries are sending their defence personnel for training in India. We are encouraging them. We are giving them more slots. We are also considering to supply some sort of defence materials through export or through line of credit to the countries so that they can depend on India for their defence," Mr Parrikar told reporters on the sideline of an international conference in Bhubaneswar.

Mr Parrikar, however, said he would not be able to reveal names of the countries which are sending their personnel for training due to security reasons. Meanwhile, the Defence Minister said, "We are organising a naval exercise in Visakhapatnam where international fleet will participate... It will be a spectacular show of basic exercise of infrastructure." However, Mr Parrikar said, India does not want to dominate any other country but

increase its own strength through partnership and friendship.

Asked whether China is also participating in the exercise, Mr Parrikar said, "We are yet to send invitation. It's an open matter. Once the list is prepared, you can know." On Blue Navy, Parrikar said the concept of it will come to practice when India posts 30/40 ships at about 300/400 nautical miles from the coast.

Meanwhile, on one rank one pension (OROP) scheme, he said, "The defence ministry has already finalised the OROP scheme. However, certain financial and administrative procedures will be followed. The first positive thing is that it has been prepared properly.

The Ministry of Tourism has identified 50 tourist circuits for development New Delhi: The Ministry of Tourism has identified areas including Cruise Tourism for Goa, Core Buddhist Circuit, Pilgrimage circuits which include Varanasi Ghat etc. The latter will help augment the initiative undertaken to reinstate the sanctity and development of the holy city. Minister of State for Tourism and Culture, Sripad Yesso Naik, disclosed this at an interactive Meeting organized by CII in Goa on Tuesday.

The Minister said that India will be pos i t ioned as a Global brand by m a k i n g t r a v e l hassle free and user friendly through implementation of e-visa that will be introduced in a phased manner at nine airports in India including Goa very shortly. This will be a game changer for the tourism industry and will attract large number of foreign tourists. Arjun Sharma, Co-Chair of CII National Committee on Tourism emphasized that for India to achieve its goal of attracting 12 million foreign tourists annually, and to combat issues pertaining to taxation, visa, infrastructure, and other concerns, it is essential that the government and private sectors collaborate and work together to achieve the set targets and help India become a major tourist destination.

CII too suggested the creation of an empowered National Tourism Board comprising of the government, public and private players who can work in partnership. A step by step approach and deliberation over the existing suggestions of cost of visa and its link to reciprocity, simplifying visa form and procedures, improvements in visa processes, exempting hotels and tour operators from service tax on foreign exchange earnings and alleviating the problem of multiplicity of taxes at various levels will help the sector prosper and become a major foreign exchange earner for India.

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9 Copyright ©2015 ICSI

Airlines,Tourism and Hospitality

Seminar on Make in India for defence PUNE: The Confederation of Indian Industry (CII) in partnership with the Maharashtra Ex-servicemen Corporation Ltd (MESCO) has organised a seminar on Make in India for defence, in light of promoting Make in India on Saturday,25th April 2015.

A statement issued by the CII said that Pune being a hub in manufacturing for auto and ancillary and also having various defence manufacturing companies and research institutes, the seminar was organised in the city.

The seminar aims to provide platform to local defence industry to experience the exhibits and offerings and look for opportunit ies to team up to target indigenisation.

Manohar Parrikar, Union Minister of Defence, will be present for the seminar along with Chief Minister of Maharashtra Devendra Fadnavis.

The seminar will take place at Hotel Sun-n-Sand, Peshwa I and II Hall on Bund Garden road.

The Seminar will focus on the need of indigenisation and evolve teaming models to address critical areas through defence cooperation. It will address the challenges faced by Indian defence forces for Life support for supplied products and knowledge sharing platform for new technologies and harness opportunities in frugal engineering, the statement added.

A book titled -- Perspectives on India's defence offset policy, edited by Manmohan S Sodhi and Col Rajiv Bhargava (Retd) will also be launched during the seminar.

Var ious sess ions on cha l lenges in defence manufacturing and suggested solutions, policy imperatives for Make in India, industry-public sector partnership for Make in India among others will also be conducted.

Indian and Chinese Military Officers Could Soon Train Together NEW DELHI: Weeks before Prime Minister Narendra Modi visit's China, the two countries will discuss whether officers from either side could train at military training academies in each other's country.

Indian military t r a i n i n g establishments allow mid-level o ffi c e r s f r o m "friendly foreign countries" - like USA, Sri Lanka, A f r i c a , Philippines, Vietnam etc - to train alongside Indian officers in their courses. Indian officers too train at foreign military schools.

The move to have Chinese and Indian officers train with each other is seen as effort to foster better understanding between the two armed forces. It will be keenly watched by Moscow, Japan and even the US. The modalities will be discussed during the Annual Defence Dialogue (ADD) that begins in Beijing today. The Indian side is led by Defence Secretary R. K Mathur.

Besides, the proposal to allow officers to train with each other, officials from the two countries will also finalise setting up four meeting points along the India-China border in Leh to quickly resolve stand-offs. The meeting points identified are - Track Junction, Pangang Tso Lake, Demchock and Chumar. They are also expected to discuss the expansion of the scope the annual military exercise, Hand in Hand, between India and China.

Their armies have carried out four such exercises in the past, primarily focused on counter-terrorism. "There is a possibility that the two militaries may exercise looking at different scenarios, which could involve the Navy and Air Force," a top Defence Ministry official told NDTV.

Finally, the two sides will also discuss how to better implement the Border Defence Cooperation Agreement or BDCA, which was agreed upon in October 2013 after a series of transgressions by Chinese troops, one of which resulted in a stand-off for over a month leading to heightened tension between the neighbours.

The BDCA aims to defuse border flare-ups. China and India had both agreed to curb aggressive patrolling in disputed border areas and also not to tail each other's patrols.

Issue 2015-04-3

10 Copyright ©2015 ICSI

Skill Development & Training

ARMED FORCES PERSONNEL AND SERVICE INDUSTRY

INTRODUCTION

1. The Indian Armed Forces represents a large group of well-groomed and highly motivated personnel who are accustomed to working in a system that expects them to set high individual standards and high achievement targets. The service officers as well as PBORs (personnel below Officer rank) have the requisite skills backed with discipline and afocused approach to lead a productive life.

2. Personnel from the armed forces are known to be

self-reliant, innovative, resourceful and highly adaptable and are endowed with courage, motivation, education, selflessness and honesty. They lead and inspire the men working under them to perform extraordinary tasks in challenging situations and under testing/taxing circumstances.

THE RIGHT SKILLS FOR SERVICE INDUSTRY

1. The employers in Service Sector seeking them are mostly companies dealing in services and security which includes hospitals, hotels, MNCs, and companies in the retail supply chain and logistics bus inesses . Ex- se rv icemen a re good a t administrative roles, and can get work done systematically and with authority.

2. Getting focused, multi-skilled and experienced leaders is always a huge challenge. Today Service Industry is utilizing this great opportunity in being able to recruit competent men and women from the Indian Armed Forces. These officers are team players with value systems high on ethics, integrity, and commitment to excellence. They require minimum training to excel in a job.

3. The serving as well as retiring CLASS 1

OFFICERS also have a plethora of skills learnt over

the years. They have managed thousands of men and

material worth crores , managed messes / canteens /

accommodation / shopping complexes. They have

commanded Aircraft Squadrons, ships and

submarines. The experience of handling such

important and responsible portfolios gives them an

edge over others. They are directly capable of taking

over leadership positions. Having served the nation,

they are capable of serving in any industry

4. Similarly thePBORs have experience in various

fields - communication , electricians , computer

operators, mechanics, drivers , store holders ,

worked in messes/ canteens , managed large

inventory of stores , supervised Engineering works

and so on, hence a pool of talent is available which

just needs to be tapped

5. Last but not the least the better halves of these

bravehearts - "THE LADIES" come across with a

superior level of confidence, knowledge and

Independence. The responsibilities when husband is

away o the border or some mission teach them how to

handle any situation efficiently. Their natural

Grooming, Etiquette and Interpersonal Skills, which

they pick up owing to the nature of services makes

them suitable as Trainers or Administrators in

Service Industry

Issue 2015-04-3

11 Copyright ©2015 ICSI

Skill Development & Training

Issue 2015-04-3

12 Copyright ©2015 ICSI

Media & Entertainment Industry

Contribution of Defence in Media Industry

With the passage of time media industry h a s w i d e n i t s approach and has g i v e n i m m e n s e e m p l o y m e n t opportunit ies not only to the young talent but also to the experienced people from other fields who have passion for writing and speaking. Defence personnel have also contributed well in media industry. Retired as well as employed army personnel provide their services to the media in the form of article writer or by being part of talk shows & chat shows for national and international issues. Sometimes they become the source for some military based stories.

The relationship between the military and the media is changing, propelled by certain momentous developments, in all the major democracies of the world, including India. This scenario of change, which has evolved over a number of years, has shifted the balance towards the media and in the process, thrown up a new series of challenges to the military; challenges which the military must address if it is not to enter future operations, both in conflict and peace, at a significant disadvantage. The role of the press in reporting on the military is likely to be enhanced, and the military is increasingly to be fixed in the media focus. In such circumstances the military must take a long hard look at how it interfaces with the media and make the necessary changes to re-establish a relationship in which the military and the media will be able to successfully work alongside each other to the benefit of both and for the society at large. After all, the media have an important role to interpret the military to society and society to the military.

The Indian media, though now operating in the global arena, have so far not been able to use thedefence personnel, while the Indian armed forces have yet to fully grasp the power and potential of the media in projecting their correct image. But with the changing time the scenario has also been changed. Military Personnel are working closely with media.

Defence Journalism can be a very complex concept unless and until understood & experienced well. Factual reporting can be done easily by learning but special articles about military people and their life cannot be done well without the involvement of army people. Now a days working as well as retired military personnel are invited to write stories, articlesand blogs for the publications. With these opportunities the defence personnel get the good source of income and on the other hand benefit the society with their experience and expertise.

Government initiatives for Re-employment of Ex-servicemen

The Central and state governments provide a number of concessions to ex-servicemen for their re-employment in Central or State government posts.

C e n t r a l Gove rnmen t has reserved 10 p e r c e n t o f G r o u p " C " posts and 20 per cent of Group "D" posts for ex-servicemen. Public Sector Units and nationalized banks provide 14.5 per cent reservation for Group "C" posts and 24 per cent reservation in Group "D" posts. 10 per cent of posts of Assistant Commandant in the paramilitary forces are reserved for ex-servicemen. A new Department of Ex-servicemen Welfare (ESW) was set up in September, 2004 within the Ministry of Defence. This Department formulates various policies and programmes for the welfare and resettlement of Ex-servicemen in the Country.

The Directorate General of Resettlement (DGR) registers or sponsors private ex-servicemen security agencies for providing security guards to various Public Sector Units and industries in the private sector. Some states have set up their own Ex-Servicemen Corporations to provide security services in the state. The Department of Public Enterprises had issued instructions to all Public Sector Units to hire security personnel only from state ex-servicemen corporations or DGR sponsored Security Agencies. Currently there are around 1800 ESM security agencies that have provided employment to over 110000 ex- servicemen.

The government has also set up self-employment schemes to help retired defence personnel set up small scale or medium scale businesses. The Self Employment Scheme for Ex Servicemen II and III (SEMFEX-II and SEMFEX-III) and the National Equity Fund Scheme are some such schemes. These schemes provide loans to ex-servicemen for starting a small-scale business. The application for the sanction of a loan needs to be submitted to the ZilaSainik Board.

Other employment opportunities for Ex-Servicemen are the Coal Transport Companies Scheme and the Coal Tipper Scheme. Petrol Pumps, LPG and Kerosene Dealerships have been allotted to personnel with disabilities that can be attributed to military service. Preference is given to ex-Servicemen, disabled defence personnel and widows in the allotment of public telephone booths. In the National Capital Region of Delhi, ex defence personnel are involved in operating Mother Dairy booths, vegetable stores and Compressed Natural Gas stations.

Issue 2015-04-3

13 Copyright ©2015 ICSI

Media & Entertainment Industry

PM's assurance of local manufacturing has defence stocks firing

Shares of companies related to defence sector saw hectic buying in an overall s t r o n g b r o a d e r market surging up to 16 per cent.These stocks saw frenzied buying after Prime Minister NarendraModi made a strong pitch to end India's dependence on defence imports.

He promised a conduc ive env i ronment fo r manufacturers, including a discrimination-free tax system, and asked foreign firms not to be just "sellers" but "strategic partners".

Astra Microwave Products zoomed 16.36 per cent to Rs 153.60, PipavavDefence and Offshore Engineering Company soared 12.52 per cent to settle at Rs 77.75 on the BSE. Bharat Electronics Ltd jumped 9.11 per cent and BEML was up 3.62 per cent.Meanwhile, in the stock market the BSE benchmark Sensex rose by 184.38 points to settle at 29,320.26.

Inaugurating the 10th 'Aero India' show in Bengaluru, the Prime Minister said while the country needs to increase its defence preparedness and modernize its forces due to security challenges that were well known, it should aim to manufacture 70 per cent of military hardware domestically in next five years and remove the tag of being number one importer of defence equipment.

Stressing that developing domestic defence industry he said, "We will build an industry that will have room for everyone - public sector, private sector and foreign firms". The defence industry of India has deep impact on its Sensex market and hence developing its economy.India has no doubt established a large defence industrial base, which continues to grow.In addition to opening up defence industry, India's Defence Ministry has also taken several measures to energize the domestic defence prosecution.

Government facilitates Defence PersonnelThe Government has provided certain concessions to senior citizens who have worked in the Armed Forces. Retired Defence Personnel enjoy special cost benefits in sectors such as travel, health, housing, reemployment and pension.

Travel concessions are available for road, rail as well as air travel. Indian Railways allows free travel in air conditioned (AC) II tier coaches of mail or express trains and AC III tier in Rajdhani trains for winners of gallantry awards such as ParamVir Chakra, Mahavir Chakra and Vir Chakra. As far as war widows of defence personnel are concerned, they are allowed a concession of 75 per cent on the fare for travelling in second class. In planes, 75 per cent concession is available to retired defence personnel who are Level I or Level II gallantry award winners.

Benefits to retired defence personnel also include a range of medical facilities. Ex-servicemen and their families are allowed to go for in-patient and outpatient treatment at military hospitals at any time. The Ex-servicemen Contributory Health Scheme has helped them to a great extent. Non-pensioner ex-servicemen are provided financial assistance to meet medical expenses.

Pension Facilities The nature of retirement or release from service determines the for Armed Forces personnel. On normal retirement or release from service after the completion of the prescribed tenure, a retiring/serving pension is paid. In cases of disablement in non-battle casualty cases, disability pension is sanctioned on the recommendation of the appropriate medical authority. Personnel who have been injured or wounded during war or war like operations are granted a special pension known as War Injury Pension

Usually, the retiring pension is calculated at 50 per cent of the average computable emoluments drawn during the last 10 months. The commutation pension given to defence personnel is 43 per cent for the officers and 45 per cent for personnel below officer's rank.

Saving Instruments The Senior Citizens Saving Scheme or SCSS is a useful savings instrument available to ex defence service personnel. This scheme was recently launched by the Central Government and allows retired defence personnel to invest in this scheme at any stage of their life.

This SCSS provides retired defence personnel and others an interest rate of 9 per cent on their deposits. The Government has also been introducing other financial schemes and programmes for the benefit of retired defence personnel and their dependants. SCSS are available through any post office that does savings bank work. There are also 24 nationalised banks and one private sector bank (ICICI Bank) through which senior citizens Saving Schemes are available.

Housing Benefits The central government as well as several state governments has come up with plans and schemes to enable retired defence personnel to buy a home or piece of land. Ex military personnel may also apply for financial assistance to construct a home.

Issue 2015-04-3

Disclaimer: This information has been collected through secondary research and ICSI is not responsible for any errors in the same. ICSI—International Chamber for Service Industry.

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CONSTITUENT SECTORS OF INDIAN SERVICE INDUSTRY

KPO Growth Rate : 20%

Employment : 3.5 lakh

Present Scenario : US$ 20 billion

Future Scenario:US$ 30 billion by end

of 2015

LPOGrowth Rate : 18-20%

Employment : 79,000

Present Scenario : US$ 2.5 billion

Future Scenario:US$ 4 billion by end

of 2015

BPO Growth Rate : 12-15%

Employment : 2.8 million

Present Scenario : 2.5% of GDP

Future Scenario:US$ 225 billion by 2020

Tele Communications Growth Rate : 1.5% of GDP

Employment : 70,000 employees required every year

Present Scenario : 1.5 billion subscribers

Future Scenario : 5 billion subscribers

by 2020

IT Services

Growth Rate : 12%

Employment : 1.2 million directlyand 3 million indirectly

Present Scenario : US$ 71.5 bilion

Future Scenario:US$ 250 billion by 2020

ITES Services

Growth Rate : 12%-15%

Employment : 2.8 million

Present Scenario : US$ 500 Billion

Future Scenario:US$ 1.7 Trillion 2022

Insurance

Growth Rate : 12%

Employment : 2.5 million

Present Scenario : US$ 66.4 billion FY 2013

Future Scenario : US$ 350-400 billion

by 2020

Present Scenario : US$ 1.8 trillion FY 2013

BankingGrowth Rate : 8.5%

Employment : 8.4 million

Future Scenario : US$ 28.5 trillion

by 2025

Media & EntertainmentGrowth Rate : 11.8%

Employment : 18.3 lakh every year

Present Scenario : US$ 900 billion

Future Scenario:US$ 1.8 trillion by 2020

MICEGrowth Rate : 15%-29%

Employment : 11.49%

Present Scenario : US$ 600 billion

Future Scenario:Expected to increase

by 15% to 20%

PR & Advertising

Growth Rate : 10%

Employment : 8 Lakhs

Present Scenario : US$ 35 billion

Future Scenario : US$ 280 billion

by 2020

Logistics &Distribution Services

Growth Rate : 10- 15%

Employment : 1 million

Present Scenario : US$ 98 billion

Future Scenario : US$ 200 billion

by 2020

Transportation ServicesGrowth Rate : 5.6% share of GDP

Employment : 1 million

Present Scenario : 11 million automobilesproduced per year

Future Scenario:Investment of US$500 required in

next 10 years

Education Counselling Growth Rate : 16.5%

Employment : 7.9 million

Present Scenario : 96% enrolment in elementary edu.

Future Scenario:30% growth by 2020in higher education

HR & ConsultancyGrowth Rate : 21%

Employment : 1 million approx

Present Scenario : INR 250 billion

Future Scenario:INR 500 billion

by 2025

Research Services

Growth Rate : 15.8%

Employment : 2 lakh

Present Scenario : US$ 44 billion

Future Scenario:Double by 2020.

Leisure ServicesGrowth Rate : 8%

Employment : 41,000 per year

Future Scenario : INR 1000 crores by 2020

Present Scenario : 40% of tourism industry

Travel & TourismGrowth Rate : 7.1% (Foreign)

9.6% (Domestic)

Employment : 35 million

Present Scenario : 6.9 billion FTA

Future Scenario:FTA arrival by 2024will be 13.4 billion

Hospitality Services

Growth Rate : 14% pa

Employment : 12.4% of Total empployment

Present Scenario : US$ 117.7 billion

Future Scenario:US$ 418.9 billion by 2020

Airline ServicesGrowth Rate : 1.5% of GDP

Employment : 1.7 million

Present Scenario : 121 million domestic and 41 million (int.) pax

Future Scenario:336 million domestic and

85 million (int.) pax by 2020

Health Wellness Medical Tourism

Growth Rate : 27%

Employment : 2 million

Present Scenario : US $ 3.9 billion

Future Scenario:US $ 7.2 billion by 2018

Agro Related ServicesGrowth Rate : 8%

Employment : 47%

Present Scenario : 18% to GDP, FDI US$ 365.1 million

Future Scenario: CAGR 3.3% by 2020

Sales & Marketing Growth Rate : 13%

Employment : 5 million

Present Scenario : Rs. 5000 Crore

Future Scenario : Rs. 9000 Crore by 2020

Retail BusinessGrowth Rate : 5.7%

Employment : 4 crores direct,20 crores indirect

Present Scenario : US $ 270 billion

Future Scenario:US$ 738.7 billion

by 2017

Housing & Infrastructure

Growth Rate : 8.2 Percent

Employment : 3.4 million direct and indirect jobs

Present Scenario : INR 2 million crore

Future Scenario: INR 2.5 million crores

in next 2 years

Real Estate & Construction Growth Rate : 2%

Employment : 35 million

Present Scenario US$ 78.5 billion

Future ScenarioUS$ 180 billion

by 2020