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
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
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
Make in India initiativePillars of a new resurgent India
New ProcessesNew R&DNew Design New Mindset New Infrastructure New Innovation New Sectors
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
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
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%
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
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
Delhi–Mumbai industrialcorridor
Amritsar–Kolkata industrialcorridor
Chennai–Bengaluruindustrialcorridor
Bengaluru–Mumbai industrialcorridor
Chennai–Vizagindustrialcorridor
Creating new world class infrastructure
National Industrial corridor development authority (NICDA) being created
Converging Industrial corridors
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
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
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
Indian Economy - what the world says:
48
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
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.
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.
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
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
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
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
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
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 $14.8 bn in FY2013-14
About 46,000 Indian students studying in Australian Universities
India – Australia’s largest export market for gold and chickpeas.
India – Australia’s second largest market for coal and copper ores
India – Australia’s third largest market for lead and wool
Indian community of nearly 295,000 (persons born in India) contributing to theAustralian economy in their role as teachers, doctors, accountants, engineers andresearchers.
Top Sectors Export – Import (2014 – 2015)
Major Australian exports A$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
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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.
.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.
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
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
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
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
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
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
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