qxca make in india presentation

www.qxadvisors.comwww.qxadvisors.com By Ravi Kurani,

Director of QXCA

QX Corporate AdvisorsMake in India Presentation

www.qxadvisors.com 2

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 a hub for R&D

Making India a centre for large scale manufacturing

Urbanisation – a unique opportunity

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3

4

5

6

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Make in India initiative

1 New processes

2

3

4

5

New R&D

New design

New mind-set

New infrastructure

6 New innovation

7 New sectors

Pillars of a new resurgent India


Ease of doing business

Make India the easiest and simplest place to do business

Eliminate paperwork, processes, procedures,

rules & acts

Converge & integrate departments

Use technology to leapfrog


Share information across platforms

Eliminate unnecessary steps and requirements

Merge processes wherever possible

Promote self-compliance, self-certification

Steps for ease of doing business

Convert from manual to online

Eliminate touch points with applicants

Prepare checklists, adhere to them

Prepare timelines, punish delays


Initiatives taken by government for defence sector

Large number of products taken off from

licensing list

Licensing requirement removed for dual use

items

Time period for implementing licence

extended

Validity of security clearance extended

Partial commencement of production to be treated as

commencement for all products

Simplified forms, online application through eBiz


Initiatives taken on labour reform

Unified portal (Shram Suvidha) for registration of units for LIN, reporting of

inspections, submission of returns and Grievance redressal launched

Employer registration with ESIC and EPFO made online

Payments for ESIC and EPFO made online with 56 accredited banks

Combined return for 8 labour laws


Initiatives taken for companies

Eliminate requirement of minimum paid-up capital

Eliminate requirement of common seal

Elimination of declaration of commencement of business

Incorporation of company made a single step process by merging options for

name availability and allotment of DIN

Single process for incorporation of company, allotment of PAN & TAN and

registration with ESIC & EPFO

Amendment in the Companies Act, 2013 introduced to


Other reforms

Documents required for import and export reduced to three from 10 and 7

respectively

Online single window for clearance of imported goods initiated:

• Message exchange with FSSAI & plant quarantine

Customs Clearance Facilitation Committee at ports to ensure expeditious

clearance of goods


Maharashtra

Initiatives taken by states

Simplification of process for new electric

connection: reducing 4 processes and 46 days

Integration of VAT and Professional Tax

registration process: Single ID for both taxes

Online registration of shops & establishments

Commercial divisions created in High Court

Real-time allotment of TIN for VAT registration

Online application for construction permits for

residential and industrial buildings: Elimination

of multiple interaction for applicants

Online registration of shops & establishments

Commercial divisions created in High Court

NCT of Delhi


eBiz- Integration of services and payment

Issue of Industrial License

Filing of Industrial Entrepreneurs Memorandum

Employer Registration with ESIC

MCA Name Availability

Issue of Director Identification Number (MCA)

MCA-Certificate Of Incorporation

MCA-Certificate for Commencement of Business

Reporting of Advance Foreign Remittance to RBI

Reporting of FC-GPR

Issue of Permanent Account Number

Allotment of Tax Deduction and Collection

Account Number

Employer Registration with EPFO

Importer Exporter Code

License for Possession and Sale or Possession

and Use of Explosives


Radical reforms- ease of doing business

No minimum capital. No common seal. No declaration of commencement of business

Online & real-time registration with ESIC & EPFO, P AN & T AN

Combined returns under 8 labour laws

Documents for exports and imports reduced from 1 1 to 3.

Delicensing of defence – 56 % of defence items taken out of licensing requirement

NRI investments be treated as Indian investments


100%

Railways

Making India part of the global supply chain

49%

Liberalised FDI Regime:

ConstructionMedical devices Insurance and pension funds

Defence


Liberalised Foreign Direct Investment regime

FDI permitted in Telecom sector

100%

FDI permitted in asset reconstruction companies

FDI in single-brand retail

FDI in pharmaceuticals sector

India today is one of the most open economies of the world


Make in India - impact on FDI (Oct - Apr)


FDI inflows in India – top sectors (2014-15)


Engagement figures

Over 12500 investor queries addressed through the Make in India portal

21000 visitors on the e-BiZ portal

Subscriber base of 5000 on the e-BiZ portal

3.5 million fans on FB

558,000 followers on Twitter


Delhi- Mumbai Industrial Corridor Chennai- Bengaluru Industrial Corridor

Creating new world class infrastructure


Bengaluru- Mumbai Industrial Corridor Chennai- Vizag Industrial Corridor

Creating new world class infrastructure


Converging Industrial corridors

National Industrial corridor development authority (NICDA) being created


New Mindset - Red tape to red carpet

24x7 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


100 smart cities

Transforming 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


Using technology to leapfrog - JAM

160 million new household accounts

Jan dhan

1 billion Aadhar enrolments, Unique identity movement

Aadhar

900 million cell phone users (370 mn

in rural areas)

Mobile

India using mobile technology, unique identity & bank accounts.


Indian economy - what the world says:

Baseline Profitability Index, 2015 (Reported in Foreign Policy Journal)• India ranked 1st among 110 countries in 2015 as compared to 6th in 2014

World Bank Group: Global Economic Prospects, January, 2015• India to be world's fastest growing big economy by 2017

OECD: India is the only country among top economies to increase its pace of growth

UNCTAD News, World Investment Report, 2015• India climbs 6 places from 15th to 9th to join the league of world's top 10

countries by FDI inflows

Frost and Sullivan, USA Award for Make in India, 2015• Economic Development Innovation Award for Policy and Programme

Implementation Excellence


Skill India - key challenge

Demographic dividend – 62% of population in Working Age Group

104 Million to be skill trained by 2022

New 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


Digital India

New initiatives

Transform India into a digitally empowered

society and knowledge economy

Focuses on building toilets, especially for

women and make India the cleanest country

Swachh Bharat Abhiyaan and Clean Ganga


India at the heart of frugal engineering

Renault KWID will do much better than any other car because it has Indian 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

Jaipurfoot produces ultramodern prosthetic foot and knee replacements for US $45 and $20 - 50 top inventions of the world – Time magazine

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

Low cost but not low tech!


India - design & innovation

A large consumer market

Large B2B market, one of the largest business to

government markets

India - an innovation lab for companies combining

technology, design, innovation


India - a vibrant nation of startups

Fastest and third largest ecosystem in the world

Technology product, digital & manufacturing startups projected for rapid growth

10 fold increase in access to capital through VC’s, angel investment and seed funding

Nation of job creators rather than job seekers

India is in the midst of a startup boom


v

India - an R&D powerhouse

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

centres, almost 10,000 companies employing

5,00,000 Indians.


Fostering innovation

Strong 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


Snapshot of core research by MNC R&D centres in India

o Composite material design

o Electromagnetic analytics

o Nondestructive evaluation technology

o Next generation magnetic sensors

o Image analysis and computer vision

o Intelligent vehicle technologies

o Smart system modeling

o Vehicle structure and safety

o Chemical reaction modeling

o Decentralised energy systems

o Embedded systems

o S.M.A.R.T.* technologies

o Healthcare systems and technologies

o Energy and lighting

o Consumer lifestyle technologies

o High performance computing

o Avionics

o Structures

o Decentralised energy systems

o Embedded systems

o S.M.A.R.T.* technologies

o Abrasives/adhesives

o Coatings

o NVH materials


9th largest civil aviation market in the world

Aviation

Amongst top 12 biotech destinations in the world; 3rd

in the Asia-Pacific region

Biotechnology

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

Chemicals

India’s car market potential: 6+ Millions units annually by 2020

Automobiles

Over 35 IPOs of Global OEMs & Tier 1 procuring from India

Auto-components


The industry has grown close to USD 25 billion. It contributes 1.4% to the nation’s GDP and 10% to the

manufacturing growth

Electrical machinery

Expected demand to reach USD 400 Billion by 2020, aided by

government schemes

Electronic systems

National Food Processing Policy aims to increase the level of food processing from 10% in

2010 to 25% in 2025.

Food processing

Approx. USD 650 billion required for urban infrastructure over the

next 20 years

Construction

Up to 49% FDI is now allowed under the government route and beyond 49% with the approval of cabinet committee

Defense


The industry is expected to register a CAGR of 14.2%, reaching

INR 1785.8 Billion in 2018

Media & entertainment

India has vast minerals potential with mining leases granted for

longer durations of 20 to 30 years

Mining

Threefold increase in energy demand expected in India by 2035 to 1,516 mn tonnes of Oil Equivalent from 563 mn

Tonnes of Oil Equivalent in 2012.

Oil & gas

The IT-BPM sector constitutes 8.1% of the country’s GDP and contributes

significantly to public welfare

IT & BPM

Total production value of US$11 bn with great potential for exports and a

huge domestic market

Leather


100% FDI under the auto route in the railway infrastructure segment

Railways

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

Roads & highways

India stands fifth in the world in the overall renewable energy capacity

installation with an installed capacity of 33,792MW

Renewable Energy:

Expected to rank among top 3 pharmaceutical markets in terms of

incremental growth by 2020.

Pharmaceuticals

Special Economic Zones are being developed in close proximity to several ports –

comprising coal-based power plants, steel plants and oil refineries

Ports


4 ultra mega power projects awarded and five more ultra mega power projects),

under the plug and play model will be set up with total investments of ₹1 trillion

Thermal power

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

Tourism

The sector is growing at 20% from year to year and is projected to

amount to INR 162 Billion in 2014

Wellness

India is a world leader in low cost space exploration and Indian space

program stands out as the most cost effective in the world

Space

India has the second-largest manufacturing capacity globally

Textiles

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