Power point slides by M.VENKATESWARA RAO3rd semester MBAM.S.N.P.G.CenterAndhra University CampusKAKINADA.

TOPICCREATIVE INDIA FOR MAKE IN INDIA

ABOUT MAKE IN INDIA 1.What is make in India 2.What do u want ? 3.Where are we ? 4.Balance of trade situation ? 5.Balance of trade ? 6.What are we exporting ? 7.What are we importing ? 8.Objectives of make in India 9.The highlights and purpose 10.Which Sectors included in the campaign. 11.Which things MAKE IN INDIA Will do ? 12.List of challenges 13.References

INDIA

India is one of the world's fastest-growing economies.

The tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP).

WHAT DO WE WANT?Sustainability - Short, Medium & Long TermPrinciple of Co-Existence with Nature Innovations and CreativityGainful Productive EmploymentDignity of Labor & EqualitySelf Reliance, Sovereignty & LeadershipExport Surplus Nation

WHERE ARE WE ?COUNTRY EXPORTS IMPORTS TOTAL TRADE TRADE BALANCE

ALL COUNTRIES 300,400.00 496,736.00 791,136.00 -190,336.00

U.A.E 36,265.15 38,436.47 74,701.62 -2,171.32

CHINA 13,503.00 54,324.04 67,827.04 -40,821.04

UNITED STATES 36,152.00 24,343.73 60,496.03 11,808.57

SAUDI ARABIA 9,783.81 34,130.50 43,914.31 -24,346.69

SWITZERLAND 1,116.98 29,915.78 31,032.76 -28,798.80

SINGAPORE 13,608.65 7,754.38 21,363.03 5,854.27

GERMANY 7,244.63 14,373.91 21,618.54 -7129.28

HONG KONG 12,278.31 8,078.58 20,356.89 4,199.74

WHERE ARE WE? India has been recording sustained trade deficits

since 1980 mainly due to the high growth of imports, particularly of crude oil, gold and silver.

IMPORTS India is heavily dependent on crude oil imports, with

petroleum crude accounting for about 34 percent of the total imports.

The country also imports: gold and silver (12 percent of the total imports), machinery (10 percent), electronic goods (7 percent) and pearls, precious and semi-precious stones (5 percent).

India’s main import partners are China (10.7 percent of the total shipments), United Arab Emirates (8 percent), Saudi Arabia (7 percent), Switzerland (7 percent) and the United States (5 percent).

IMPORTS AND EXPORTS

A. EXPORTS (Receipts)Exports during October, 2014 were valued at US $ 12146 Million (Rs. 74505.99 Crore).

B. IMPORTS (Payments)Imports during October, 2014 were valued at US $ 5942 Million (Rs. 36449.42 Crore).

C. TRADE BALANCEThe trade balance in Services (i.e. net exports of Services) for October, 2014 was estimated at US $6204 Million.

BALANCE OF TRADE SITUATION

BALANCE OF TRADE

WHAT ARE WE EXPORTING

ON INDEPENDENCE DAY

Invited global companies to pick India to locate factories, promising to replace red tape with red-carpet welcomes.

To make India break into the top 50 in the World Bank’s ease of business index ranking from the current 134th position.

Continued……

• Coined by PM Shri Narendra Ji Modi

• Announced On 15th August 2014

• Owned By Government Of India

• Launched on 25 sept 2014

• Decided on Global Summit

MAJOR OBJECTIVES The major objective behind this initiative is to focus

upon the heavy industries and public enterprises while generating employment in India.

To facilitateInvestmentFoster innovationEnhance skills developmentProtect intellectual propertyTo built best-in-class manufacturing infrastructure

THE HIGHLIGHTS AND PURPOSE The campaign, 'Make in India' is aimed at making India a

manufacturing hub and economic transformation in India while eliminating the unnecessary laws and regulations, making bureaucratic processes easier and shorter, and make government more transparent, responsive and accountable.

The government emphasized upon the framework which include the time-bound project clearances through a single online portal which will be further aided by the eight-members team dedicated to answering investor queries within 48 hours and addressing key issues including labor laws, skill development and infrastructure.

Following sectors have been included by the Government in this campaign.

5 things ‘Make In India’ will do

1. Guide Foreign Investors2. Assistance to Foreign Investors3. Prompt Response4. Provide Relevant Information5. Proactive Approach

SPACEIndia’s space program me stands out as one of the most cost-effective in the world. Reason to Invest

India’s space program has launched 40 satellites for 19 countries. With ISRO undertaking the development of technologies & interplanetary exploratory mission, there is a scope in contribution to realization of operational mission and new areas. Growth Drivers• The Indian Space Research Organization• Space Commerce FDI Policy• FDI up to 74% is allowed in satellites- establishment and operation, subject to the sectoral guidelines

of the Department of Space/ISRO, under the government route. Sector Policy• Satellite Communication Policy

THERMAL POWER Reason to Invest Government is targeting a capacity of 88.5 GW during 2012-17 & 86.4GW during 2017-22. Growth Drivers• Expansion in industrial activity to boost demand for electricity.• A growing population is likely to boost demand for energy.• Increasing market penetration and per-capita usage will provide further impetus to the energy industry.• Large capacity additions (174.9 GW) are targeted up to 2022. FDI Policy• 100% FDI is allowed under the automatic route in the power sector, subject to all the applicable regulations

and laws. Sector Policy• Electricity Act 2003• National Tariff Policy 2006

WELLNESS 2nd largest exporter of Ayurveda and alternative medicine in the world. Reason to Invest• Indian system of medicine & homoeopathy are widely recognized for their holistic approach to health

& capability for meeting health challenges.• The sector is growing at 20% from year to year. Growth Drivers• Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy • Central Sector Scheme for promotion of International Cooperation FDI Policy• 100% FDI is permitted in the AYUSH sector. Sector Policy• The National Rural Health Mission • National Policy on Indian Systems of Medicine & Homoeopathy – 2002.

MEDIA AND ENTERTAINMENT 3rd largest TV market in the world. 800 TV channels. Reason to Invest• India has a large broadcasting & distribution sector, comprising 800 TV channels, 6000 multi-system

operator, 7 DTH operator.• Total market size of Indian entertainment industry growing by 11.8% over 2012. Growth Drivers• Television and AGV FDI Policy• Broadcasting Carriage Services• Broadcasting Content Services Sector Policy• The Cable Television Networks (Regulation) Amendment Act

AUTOMOBILES• 2.15 million vehicles produced by 2013-2014 Reason to invest • 7% of the country’s GDP by volume• By 2015, India is expected to be the fourth largest automotive market by volume in

the world. Growth Driver• Two-wheelers and three-wheelers are projected to expand at a CAGR of 9% between

2013-20. Sector Policy• Automatic approval for foreign equity investment up to 100% with no minimum

investment criteria.

AUTOMOBILE COMPONENTS Reason to invest • 4th largest steel producer in the world• 2nd largest steel producer by 2015 Growth driver • Geographically closer to key automotive markets like the ASEAN, Japan, Korea & Europe Sector policy • Increased investments in R&D operations and laboratories, conduct activities such as analysis,

simulation and engineering animations.• Automatic approval for 100% foreign equity investment in auto components manufacturing facilities.• Establishment of automotive training institutes and auto design Centre's, special auto parks and

virtual SEZs for auto components.

OIL AND GAS

Reason to invest • 4th largest consumer of crude oil and petroleum products in the world.• 2nd largest refiner in Asia. Growth driver• New Exploration Licensing Policy and the Coal Bed Methane Policy have been put in place to

encourage investments • Oil imports constitute over 80% of India’s total domestic oil consumptions of May, 2014. Sector policy • The government has decided to set up strategic storage of 5.03 MMT of crude oil at 3 locations –

Visakhapatnam, Mangalore and Padur.• The Policy on Shale Gas & Oil, 2013 allows companies to apply for shale gas and oil rights in their

petroleum exploration licenses and petroleum mining leases

IT AND BPM

USD 118 Billion –expected 2014 revenues. Reason to invest • The IT-BPM sector constitutes 8.1% of the country’s GDP and contributes significantly to public

welfare. Growth driver • The sector includes 600 offshore development centers (ODCs) of 78 countries. Sector policy • National Policy on Information Technology 2012 aims to increase revenues of IT and BPM industry

to USD 300 Billion by 2020 and expand exports to USD 200 Billion by 2020.• Allocation of INR 5 Billion for launching a pan-India program me – Digital India and a national rural

internet and technology mission for services in villages and schools, training in IT skills and E- Kranti for government service delivery and governance scheme.

LIVE PROJECTS The project is featured in KPMG’s ‘100 Most Innovative Global Projects.

Delhi-Mumbai Industrial Corridor (DMIC) and it utilize the 1,483

km-long, high-capacity western Dedicated Railway Freight

Corridor (DFC) as the backbone.

Twenty four manufacturing cities are envisaged in the perspective

plan of the DMIC project

FIRST PHASE In the first phase, seven cities are being developed. Uttar Pradesh Haryana Rajasthan Madhya Pradesh Gujarat Two in Maharashtra. The Phase I is initially is to be completed by 2019. DMIC states (Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat & Maharashtra) contribute 43% to the country’s GDP.

.

.

DRIVES OF THE PROJECT

49

26

19

4.1 1

Delhi-Mumbai Industrial Corridor De-velopment Corporation

DIPP -49%JBIC - 26%HUDCO-19 %IIFCL- 4.1%LIC -1 %

SECTORS FOCUSED

General Manufacturing

Electronics

Automobile

Metals and metallurgical products

Pharmaceuticals and Biotech

SECTORS FOCUSED

Food Processing

Agro

Heavy Engineering

Information Technology

Services sector

OTHER FOUR CORRIDORS

Bengaluru-Mumbai Economic Corridor (BMEC)

Amritsar – Kolkata Industrial Development Corridor (AKIC)

Chennai-Bengaluru Industrial Corridor (CBIC)

Chennai Vizag Industrial Corridor as the first phase of the project (CVIC)

as a East Coast Economic Corridor (ECEC)

CORRIDOR’S PENTAGON

.

POLICIES

INTELLECTUAL PROPERTY FACTS

NEW INITIATIVES

FOREIGN DIRECT INVESTMENT

NATIONAL MANUFACT-URING

NEW INITIATIVES

• Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through e Biz portal.

• Validity of Industrial license extended to three years.• Major components of Defence products’ list excluded from industrial licensing.• Dual use items having military as well as civilian applications deregulated.• Services of all Central Govt. Departments & Ministries will be integrated with the

eBiz – a single window IT platform for services by 31 Dec. 2014.• Process of obtaining environmental clearances made online.• All returns should be filed on-line through a unified form.• A check-list of required compliances should be placed on Ministry’s/Department’s

web portal.

FOREIGN DIRECT INVESTMENT

• 100% FDI allowed in the telecom sector.• 100% FDI in single-brand retail.• FDI in commodity exchanges, stock exchanges & depositories, power exchanges,

petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route.

• Removal of restriction in tea plantation sector.• FDI limit raised to 74% in credit information & 100% in asset reconstruction companies.• FDI limit of 26% in defence sector raised to 49% under Government approval route.

Foreign Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also allowed on a case to case basis with the approval of Cabinet Committee on Security.

• Construction, operation and maintenance of specified activities of Railway sector opened to 100% foreign direct investment under automatic route.

INTELLECTUAL PROPERTY FACTS

SIMPLIFIED PROCEDURE FOR FILING OF NATIONAL PHASE APPLICATIONS :

E-filing facilities :• For filing an application for patent or any document in the Patent Office, comprehensive e-filing service is

available at the official website with a facility for making e-payment and there is no need to personally visit the office.

Incentive for online filing:• Indian Patent office offers 10% reduction in fees for online filing of all forms and documents relating to patents,

at all stages of processing of an application right from the stage of filing to grant of patent and post-grant processes.

Concession for small entities :• Applicants belonging to the category of micro, small and medium enterprises (SMEs) are required to pay only

50% of the fee payable by other legal entities namely companies etc. The objective is to encourage the MSMEs to protect their knowledge assets. This facility can be availed equally by foreign applicants.

NATIONAL MANUFACTURING

.

The policy is the first of its kind for the

manufacturing sector as it addresses areas of

regulation, infrastructure, skill development,

technology, availability of finance, exit mechanism

and other pertinent factors related to the growth of the sector.

An increase in the share of manufacturing in the

country’s Gross Domestic Product from 16% to 25%

by 2022.

To create 100 million additional jobs by 2022 in

manufacturing sector.

HURDELS TO OUR ECONOMIC GROWTH

.

Poor education

Slow growth rate

Strict government

policesHigh land

cost

HOW TO OVERCOME PROBLEMS

.

Improve the

program me delivery

Extending urban

facilities in rural areas

Improving education standards

Allow foreign

investmentSupport tourism

CHALLENGES

India’s chronic infrastructure and logistics deficit with inefficient transport networks makes it tough for manufacturing companies to achieve just-in-time production.

A large chunk of manufacturers in India even believe that globalization is a myth for them and they consider global opportunities as threat for their domestic business

. For example,

increasing raw material cost, ever growing prices of industrial land, non-availability of labor and

Currently, it takes 12 procedures and 27 days to start business, 35 procedures and 168 days to get construction permits and 1420 days to enforce contracts in India.

Land Acquisition in India

Land Acquisition in India refers to the process of land acquisition by the central or state government of India for various infrastructure and economic growth initiatives.

Several controversies have arisen with claims that land owners have not been adequately compensated.

GST The Goods and Services Tax (GST) is a Value Added Tax (VAT) to be implemented

in India, the decision on which is pending. It will replace all indirect taxes levied on goods and services by the

Indian Central and State governments.

Indirect tax:

customs duty, central excise duty, service tax, sales tax, value added tax (VAT), securities transaction tax

‘Made in China’ campaign launched with ‘Make in India’

Coinciding with Prime Minister Narendra Modi’s ‘Make in India’ pitch, the Chinese government has launched a ‘Made in China’ campaign with a host of tax concessions in an effort to retain its manufacturing prowess.

China will encourage high-tech imports, research and development (R&D) to upgrade ‘Made in China’, a decision by the Chinese central government said.

References

http://commerce.nic.in/tradestats/filedisplay.aspx?id=1 http://commerce.nic.in/MOC/index.asp http://www.tradingeconomics.com/india/exports http://www.tradingeconomics.com/india/imports http://indianexpress.com/article/business/economy/made-in-china-c

ampaign-launched-with-make-in-india http://www.makeinindia.com/ http://www.makeinindia.com/sectors/

THANK YOU !!!