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Page 1: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise
Page 2: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India is one of the fastest growing economies

World's largest 

democracy with 1.2billion people

Decadal GDP growth rate  of ~8%

Strong Market Fundamentals

Land of abundant natural resources and diverse climatic 

conditions

Impetus on Infrastructure Development

Enabling business environment with 

greater global participation

Competitively priced skilled labour

Progressive simplification and rationalization of direct and indirect tax structures

Page 3: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Department of Industrial Policy &Promotion, Ministry of Commerce and

About “Make in India”• The Make in India program was launched by Prime Minister on 25th Sept

2014 and is built on layers of collaborative effort

• Broad banding of initiatives to transform India into a global design andManufacturing hub

• A National Workshop on sector specific industries in December 2014brought Secretaries to the Government of India and industry leaderstogether to debate and formulate an action plan for the next three years,aimed at raising the contribution of the manufacturing sector to 25% ofthe GDP by 2022 and create 100 million jobs over next decade

• These exercises resulted in a road map for the single largestmanufacturing initiative

• This collaborative model has also been successfully extended to includeIndia’s global partners

Resource:http://www.makeinindia.com/sectors

Page 4: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Department of Industrial Policy &Promotion, Ministry of Commerce and

“Make in India” Week

• MII Week held in Mumbai from 13-18Feb 2016 to showcase India’spotential for design, innovation andsustainability

• Created avenues for showcasing,connecting and collaborating formanufacturing in India

• Promoted investment enablingenvironment and healthy competitivespirit amongst States

Page 5: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Make in India initiativePillars of a new resurgent India

New ProcessesNew R&DNew Design New Mindset New Infrastructure New Innovation New Sectors

Page 6: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

The Challenge Grow at 10% for 3 decades

Ease of doing business

Making India a part of the global supply chain

Young India – skilling the nation and creating opportunities

Making India an hub for R&D

Making India a centre for large scale manufacturing

Urbanisation – a unique opportunity

Page 7: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Ease of doing businessMake India the easiest and simplest place to do business

Eliminate paperwork, processes, procedures, rules & acts

Use technology to leapfrog

Converge & integrate departments

Page 8: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Making India part of the global supply chain

LIBERALIZED FDI REGIME:

Railways – 100%

Construction – 100%

Medical Devices – 100%

Defence – 100%

Insurance and pension funds – 49%

Plantation (select sectors) – 100%

Civil Aviation: Non-scheduled Air Transport and Ground Handling Services – 100%

Page 9: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Make in India - impact on FDI

48%GROWTH

37.25

55.06

Nov, 2012 -May, 2014

Jun, 2014 -Dec, 2015

FDI Equity Inflow, USD billion

Page 10: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Top Sectors Receiving FDI (June 2014 –October 2015)

Service Sector Automobile IndustryComputer – SW&HW Hotel & TourismTrading MiningTelecommunications Petroleum & Natural GasConstruction (Infra) Activities Drugs & Pharmaceuticals

7 out of top 10 sectors receiving FDIare manufacturing related sectors

Page 11: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Delhi–Mumbai industrialcorridor

Amritsar–Kolkata industrialcorridor

Chennai–Bengaluruindustrialcorridor

Bengaluru–Mumbai industrialcorridor

Chennai–Vizagindustrialcorridor

Creating new world class infrastructure

Page 12: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

National Industrial corridor development authority (NICDA) being created

Converging Industrial corridors

Page 13: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

New Mindset - Red Tape to Red Carpet24x7 online service to investors across the world

Response query mechanism

Proactive intervention with all state governments

Follow-up with all Government of India departments

Japan+ and Korea+ special desks

Page 14: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

100 smart citiesTransforming lives, transforming India

Urban India will contribute 75% of GDP by 2030

700 million Indians to get in the process of urbanisation

Creating an innovative, sustainable India

Urbanisation - a unique opportunity

Page 15: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Using technology to leapfrog - JAMJan dhan – 160 million new household accounts

Aadhar – 1 billion aadhar enrolments, Unique identity movement

Mobile – 900 million cell phone users (370 mn in rural areas)

India using mobile technology, unique identity & bank accounts

Page 16: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Indian Economy - what the world says:

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Page 17: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Skill India - key challengeDemographic Dividend – 62% of population in Working Age Group104 Million to be skill trained by 2022New dynamic Skill Development & Entrepreneurship Policy National Occupation Standards laid down by Sector Skill Councils

NSDC is building scalable, for-profit vocational training institutions across India

Page 18: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

New initiativesDigital India - Transform India into a digitally empowered society and knowledge economySwachh Bharat Abhiyaan and Clean Ganga -

Focuses on building toilets, especially for women and make India the cleanest country.

Clean Ganga initiative aims to make the river Gangaclean and pollution free.

Page 19: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India at the heart of frugal engineeringLow cost but not low tech!

Renault KWID will do much better than any other car because it hasIndian Genes – Carlos Ghosn, chairman & ceo Renault

General electric’s Mac 400 electro cardio graph (ECG) Machine {1500$ instead of 10000$ for its predecessor. Cost of ECG just 1$}

Heart surgery costs between 2000$ & 5000& as compared to 20000-100000$ in US

Jaipur foot for US $45 and jaipur knee for US $20 - 50 top inventionsof the world – Time magazine

Mangalyaan – Mars orbiter mission US 73 Million – 1/10th the cost of any previous Mars mission.

Page 20: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India - design & innovationA large consumer market

Large B2B market, one of the largest business to govt marketsIndia - an innovation lab for companies combining technology, design, innovation

Page 21: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India - a vibrant nation of startupsCompliance Regime based on Self-Certification

Startup India Hub – a single point of contact for entire Startup ecosystem

Starting a Startup in 1 day on a Mobile App

Legal Support and Fast-tracking Patent Examination at Lower Costs

Relaxed Norms of Public Procurement for Startups

Faster Exit for Startups

Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore

Credit Guarantee Fund for Startups

Page 22: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India - a vibrant nation of startupsTax Exemption on Capital Gains

Tax Exemption to Startups for 3 years

Tax Exemption on Investments above Fair Market Value

Setting up of 35 New Incubators in Institutions

Setting up of 7 New Research Parks Modeled on the Research

Park Setup at IIT Madras

Promoting Startups in the Biotechnology Sector

Page 23: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

India - an R&D powerhouse1st choice for tech MNCs to set up R&D centres outside their home countries

Leading offshore destination for engineering and R&D services

Talent, technology & emerging market imperative during R&D growth

Resurgence in the number of R&D centers, almost 10,000 companies employing 5,00,000 Indians

Page 24: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Fostering innovationStrong TRIPS compliant policy framework

Ease of Access: World-class IT enabled patent offices

Internationally acclaimed systems for International Searching and Preliminary Examination of patent applications.

Madrid system for international registration of trademarks

Page 25: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Bilateral Relationship

219,000Australian tourists visited India and 160,000 Indian tourists visited Australia in 2014

India – Australia’s 7th Largest trading partner; 5th largest export market

Trade in Goods & Services – $6.8 bn in FY2003-04 to $14.8 bn in FY2013-14

About 46,000 Indian students studying in Australian Universities

India – Australia’s largest export market for gold and chickpeas.

India – Australia’s second largest market for coal and copper ores

India – Australia’s third largest market for lead and wool

Indian community of nearly 295,000 (persons born in India) contributing to theAustralian economy in their role as teachers, doctors, accountants, engineers andresearchers.

Page 26: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Top Sectors Export – Import (2014 – 2015)

Major Australian exports A$mCoal 5,516

Gold 903

Copper ores & concentrates 818

Vegetables, f.c.f. 253

Australia ranks 33rd & 18th as India’s principal export destinations & import sources respectively; 20.1% growth in total merchandise trade in 2014‐15

Major Australian imports A$mRefined petroleum 910

Medicaments (incl. veterinary) 247

Pearls & gems 239

Passenger motor vehicles 170

Page 27: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

For Feedback and Suggestions Please Log inhttp://dipp.nic.in/english/feedbackmsg.aspx

Page 28: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise
Page 29: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Automobiles:India’s car market potential: 6+ Millions units annually by2020

Auto-components:Over 35 IPOs of Global OEMs & Tier 1 procuring from India

Aviation:9th largest civil aviation market in the world

Biotechnology:Amongst top 12 biotech destinations in the world; 3rd

in the Asia-Pacific region.

Chemicals:3rd largest in Asia & 6th largest by output in the world.

Page 30: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

.Construction:Approx. USD 650 billion required for urbaninfrastructure over the next 20 years

Defence:Up to 49% FDI is now allowed under the government route andbeyond 49% with the approval of cabinet committee

Electrical Machinery:The industry has grown close toUSD 25 billion. It contributes 1.4% to the nation’s GDP and 10% to the manufacturing growth.

Electronic Systems Expected demand to reach USD 400 Billion by 2020, aided by government schemes

Food Processing:National Food Processing Policy aims to increase the level of foodprocessing from 10% in 2010 to25% in 2025.

Page 31: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Leather:Total production value of US$11 bn with great potential for exportsand a huge domestic market

Media and Entertainment: The industry is expected to register a CAGR of 14.2%, reaching INR 1785.8 Billion in 2018

Mining:India has vast minerals potential with mining leasesgranted for longer durations of 20 to 30 years

Oil and Gas:Threefold increase in energydemand expected in India by 2035 to 1,516 mn tonnes of Oil Equivalent from 563 mn Tonnes of Oil Equivalent in 2012.

IT & BPM:The IT-BPM sector constitutes 8.1% of thecountry’s GDP and contributes significantly to public welfare

Page 32: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Ports:Special Economic Zones are being developed in close proximity to severalports – comprising coal-based power plants, steel plants and oil refineries

Railways:100% FDI under the auto route in the railway infrastructuresegment

Roads and Highways: Extensive road network of 4.86 mn kms: 2nd largest in the world

Pharmaceuticals: Expected to rank among top 3 pharmaceutical markets in terms of incremental growth by 2020.

Renewable Energy:India stands fifth in the world in the overall renewable energycapacity installation with an installed capacity of 33,792MW

Page 33: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Textiles:India has the second-largest manufacturing capacity globally.

Thermal Power:4 ultra mega power projects awarded and five more ultra megapower projects), under the plug and play model will be set up with total investments of ₹1 trillion

Tourism:Foreign tourist arrivals to India has risen 7.1% to 7.5million in 2014.

Wellness:The sector is growing at 20% from year to year and is projected toamount to INR 162 Billion in 2014

Space:India is a world leader in lowcost space exploration andIndian space program standsout as the most cost effectivein the world

Page 34: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Auto Auto components Defence

Overview Likely to become 3rd largest automarket in the world by 2016,accounting for >5% of the globalvehicle sales

India’s is 2nd largest two wheelermanufacturer, largest motor cyclemanufacturer and 5th largestcommercial vehicle manufacturer

Expected size by 2016 is USD145 billion.

Worth USD 39.7 billion inFY2012–13

India’s exports of autocomponents increased at aCAGR of 17% during 2008-13;Exports have risen to USD 9.7billion in 2012-13

3rd largest armed forces in theworld.

Largest importer of conventionaldefence equipment

70% of defence requirements aremet through imports

Defence budget in 2014-15 is~USD 38 billion, expected to reachUSD 50 billion by 2018

Investment opportunities

Passenger Vehicles Two Wheelers Three Wheelers Commercial Vehicles low cost electric vehicles

Engine & Engine Parts Transmission & Steering Parts Suspension & Breaking Parts Electrical parts

Manufacturing of defenceequipment

Maintenance, repair and overhaulsegment

Engineering services outsourcing

FDI policy 100% FDI is allowed under the automatic route

100% FDI is allowed under the automatic route

Up to 49% under the governmentroute and beyond 49% through CCS(in case of transfer of technology)

Investment Opportunities — Across Sectors

Page 35: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Electrical Equipments ESDM Pharmaceutical

Overview Estimated output by 2022 to beUSD 100 billion

The market expanded at a CAGRof 10.5 per cent over (FY07–12).

Worth USD 68.31 billion in2012; anticipated to be USD94.2 billion by 2015; CAGR of9.88% between 2011 and 2015

• Accounts for about 2.4 % of the global pharma industry in value terms and 10% in volume terms

• Expected to grow at 12.1%during 2012–20

• Expected to reach USD250billion by 2020 from the currentUSD65 billion

Investment opportunities

Generation Machinery: Boilers,Turbines, Generators

Transmission Machinery

Consumer electronics Strategic electronics Medical electronics Avionics Fabless manufacturing Automotive electronics Electronic Manufacturing

Services EMCs

• Active pharmaceutical ingredients (APIs)

• Contract research and manufacturing services (CRAMS)

• Formulations

FDI policy 100% FDI is allowed under theautomatic route subject to all theapplicable regulations and laws.

100% FDI through automatic routefor ESDM except for defenceelectronics

• 100% FDI is allowed under theautomatic route for Greenfieldprojects.

• For brownfield projectinvestment up to 100% is underthe government route.

Investment Opportunities — Across Sectors

Page 36: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Construction Food Processing Leather

Overview Second largest employer andcontributor to economic activity,after agriculture sector.

Accounts for 2nd highest FDIinflow after the services sector

Worth ~USD 78.5 billion in FY13;expected to grow to USD 140billion in FY17.

Industry size is Rs 845 billion in2012-13, growing at 8.4% forthe last five years ending 2012-13

Value addition of sector asshare of GDP manufacturingwas 9.8% in 2012-13

Industry size ~USD 11 billion(exports - USD 6 billion anddomestic market - USD 5 billion)

Exports projected to grow at 24%pa in next five years. Domesticmarket expected to double innext five years.

Investment opportunities

Residential, retail, commercialand hospitality sectors

Technologies and solutions forsustainable cities, low cost andaffordable housing, Greenbuilding solutions, environmentfriendly building materials

Training and skill development ofconstruction sector workers

Smart cities Urban water supply; urban

sewerage & sewage treatment

Fruits and Vegetables Fermentation products Beverages Dairy Food additives, nutraceuticals Confectionary and bakery Meat & poultry Fish and sea foods processing Grain Processing Food packaging Food processing equipment Consumer food

Tanning and finishing of leatherproducts

Manufacturing of leathergarments

Manufacturing of leatherfootwear and footwear parts

Manufacturing of leather goods,such as harness and saddlery

FDI policy 100% FDI is allowed under theautomatic route subject toconditions

100% FDI through automatic routefor most of the food productsexcept for items reserved forMSME

100% FDI is allowed under theautomatic route subject to all theapplicable regulations and laws.

Investment Opportunities — Across Sectors

Page 37: India is one of the fastest growing · PDF file · 2017-10-09India is one of the fastest growing economies ... Aadhar – 1 billion aadhar enrolments, ... 20.1% growth in total merchandise

Chemicals Petrochemicals Oil & Gas Textile

Overview Size of the industry (2012-13) is around USD 144billion

India accounts forapproximately 16% of theworld production of dyestuffand dye intermediated

The polymer demand isexpected to grow by 8-10%with a healthy growth inclothing, automobiles, etc.

4th largest consumer of crudeoil and petroleum products inthe world (2013)

Oil imports constitute 80% ofIndia’s total domestic oilconsumption (May 2014).

At the end of 2013, India had215.066 MMTPA of refiningcapacity, making it thesecond-largest refiner of crudeoil in Asia.

• 2nd largest textilemanufacturing capacityglobally

• Sector contributes 14% toindustrial production and 4%to GDP and 13% of country’sexport earnings

• Domestic textile and apparelindustry is estimated to reachUSD 100 bn by 2017 fromUSD67 bn in 2014.

• Exports are expected toincrease to USD 65 bn by2017 from USD 40 bn in2014

Investment opportunities

Petrochemicals Specialty chemicals Agrochemicals Colorants Technical training

Underground coalgassification

E&P services and equipments City gas distribution Refinery Technology partnerships in

upstream sector

• Entire value chain of Synthetics

• Values added and speciality fabrics

• Technical Textiles• Garment• Retail Brands

FDI policy 100% FDI is allowed under theautomatic route subject to allthe applicable regulations andlaws.

FDI is subject to the existingsectoral policy and regulatoryframework and varies across thevalue chain

• 100% FDI is allowed underthe automatic route in textilesector

Investment Opportunities — Across Sectors