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2-presentation-on-make-in-india.pdf
- 2. India is oneof the fastest growing economies World's largest democracy with 1.2 billion 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
- 3. Department of IndustrialPolicy &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 and Manufacturing hub • A National Workshop on sector specific industries in December 2014 brought Secretaries to the Government of India and industry leaders together to debate and formulate an action plan for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP by 2022 and create 100 million jobs over next decade • These exercises resulted in a road map for the single largest manufacturing initiative • This collaborative model has also been successfully extended to include India’s global partners Resource:http://www.makeinindia.com/sectors
- 4. Department of IndustrialPolicy &Promotion, Ministry of Commerce and “Make in India” Week • MII Week held in Mumbai from 13-18 Feb 2016 to showcase India’s potential for design, innovation and sustainability • Created avenues for showcasing, connecting and collaborating for manufacturing in India • Promoted investment enabling environment and healthy competitive spirit amongst States
- 5. Make in Indiainitiative Pillars of a new resurgent India New Processes New R&D New Design New Mindset New Infrastructure New Innovation New Sectors
- 6. The Challenge Grow at10% 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
- 7. Ease of doingbusiness Make India the easiest and simplest place to do business Eliminate paperwork, processes, procedures, rules & acts Use technology to leapfrog Converge & integrate departments
- 8. Making India partof 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%
- 9. MakeinIndia-impactonFDI 48% GROWTH 37.25 55.06 Nov, 2012 - May,2014 Jun, 2014 - Dec, 2015 FDI Equity Inflow, USD billion
- 10. TopSectorsReceivingFDI(June2014–October2015) Service Sector AutomobileIndustry Computer – SW&HW Hotel & Tourism Trading Mining Telecommunications Petroleum & Natural Gas Construction (Infra) Activities Drugs & Pharmaceuticals 7 out of top 10 sectors receiving FDI are manufacturing related sectors
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- 12. National Industrial corridordevelopment authority (NICDA) being created Converging Industrial corridors
- 13. 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
- 14. 100 smart cities Transforminglives, 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
- 15. Using technology toleapfrog - JAM Jan 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
- 16. Indian Economy -what the world says: 48
- 17. 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
- 18. New initiatives Digital India- Transform India into a digitally empowered society and knowledge economy Swachh 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 Ganga clean and pollution free.
- 19. India at theheart of frugal engineering Low cost but not low tech! 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 Jaipur foot for US $45 and jaipur knee for US $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.
- 20. India - design& innovation A large consumer market Large B2B market, one of the largest business to govt markets India - an innovation lab for companies combining technology, design, innovation
- 21. India - avibrant nation of startups Compliance 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
- 22. India - avibrant nation of startups Tax 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
- 23. India - anR&D powerhouse 1st 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
- 24. Fostering innovation Strong TRIPScompliant 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
- 25. Bilateral Relationship 219,000AustraliantouristsvisitedIndiaand160,000IndiantouristsvisitedAustraliain2014 India– Australia’s7thLargesttradingpartner;5th largestexportmarket TradeinGoods& Services – $6.8bninFY2003-04to $14.8bninFY2013-14 About 46,000 Indian students studying in Australian Universities India – Australia’s largest export market for gold and chickpeas. India – Australia’s second largest market for coal and copper ores India – Australia’s third largest market for lead and wool Indian community of nearly 295,000 (persons born in India) contributing to the Australian economy in their role as teachers, doctors, accountants, engineers and researchers.
- 26. TopSectorsExport–Import(2014 – 2015) MajorAustralian exports A$m Coal 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$m Refined petroleum 910 Medicaments (incl. veterinary) 247 Pearls & gems 239 Passenger motor vehicles 170
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- 29. Automobiles: India’s car marketpotential: 6+ Millions units annually by 2020 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.
- 30. . Construction: Approx. USD 650billion required for urban infrastructure over the next 20 years Defence: Up to 49% FDI is now allowed under the government route and beyond 49% with the approval of cabinet committee Electrical Machinery: The industry has grown close to USD 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 food processing from 10% in 2010 to 25% in 2025.
- 31. Leather: Total production valueof US$11 bn with great potential for exports and 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 leases granted for longer durations of 20 to 30 years Oil and Gas: 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. IT & BPM: The IT-BPM sector constitutes 8.1% of the country’s GDP and contributes significantly to public welfare
- 32. Ports: Special Economic Zonesare being developed in close proximity to several ports – comprising coal-based power plants, steel plants and oil refineries Railways: 100% FDI under the auto route in the railway infrastructure segment 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 energy capacity installation with an installed capacity of 33,792MW
- 33. Textiles: India has thesecond-largest manufacturing capacity globally. Thermal Power: 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 Tourism: Foreign tourist arrivals to India has risen 7.1% to 7.5 million in 2014. Wellness: The sector is growing at 20% from year to year and is projected to amount to INR 162 Billion in 2014 Space: India is a world leader in low cost space exploration and Indian space program stands out as the most cost effective in the world
- 34. Auto Auto componentsDefence Overview Likely to become 3rd largest auto market in the world by 2016, accounting for >5% of the global vehicle sales India’s is 2nd largest two wheeler manufacturer, largest motor cycle manufacturer and 5th largest commercial vehicle manufacturer Expected size by 2016 is USD 145 billion. Worth USD 39.7 billion in FY2012–13 India’s exports of auto components increased at a CAGR of 17% during 2008-13; Exports have risen to USD 9.7 billion in 2012-13 3rd largest armed forces in the world. Largest importer of conventional defence equipment 70% of defence requirements are met through imports Defence budget in 2014-15 is ~USD 38 billion, expected to reach USD 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 defence equipment Maintenance, repair and overhaul segment 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 government route and beyond 49% through CCS (in case of transfer of technology) Investment Opportunities — Across Sectors
- 35. Electrical Equipments ESDMPharmaceutical Overview Estimated output by 2022 to be USD 100 billion The market expanded at a CAGR of 10.5 per cent over (FY07–12). Worth USD 68.31 billion in 2012; anticipated to be USD 94.2 billion by 2015; CAGR of 9.88% 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 USD250 billion by 2020 from the current USD65 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 the automatic route subject to all the applicable regulations and laws. 100% FDI through automatic route for ESDM except for defence electronics • 100% FDI is allowed under the automatic route for Greenfield projects. • For brownfield project investment up to 100% is under the government route. Investment Opportunities — Across Sectors
- 36. Construction Food ProcessingLeather Overview Second largest employer and contributor to economic activity, after agriculture sector. Accounts for 2nd highest FDI inflow after the services sector Worth ~USD 78.5 billion in FY13; expected to grow to USD 140 billion in FY17. Industry size is Rs 845 billion in 2012-13, growing at 8.4% for the last five years ending 2012- 13 Value addition of sector as share of GDP manufacturing was 9.8% in 2012-13 Industry size ~USD 11 billion (exports - USD 6 billion and domestic market - USD 5 billion) Exports projected to grow at 24% pa in next five years. Domestic market expected to double in next five years. Investment opportunities Residential, retail, commercial and hospitality sectors Technologies and solutions for sustainable cities, low cost and affordable housing, Green building solutions, environment friendly building materials Training and skill development of construction 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 leather products Manufacturing of leather garments Manufacturing of leather footwear and footwear parts Manufacturing of leather goods, such as harness and saddlery FDI policy 100% FDI is allowed under the automatic route subject to conditions 100% FDI through automatic route for most of the food products except for items reserved for MSME 100% FDI is allowed under the automatic route subject to all the applicable regulations and laws. Investment Opportunities — Across Sectors
- 37. Chemicals Petrochemicals Oil& Gas Textile Overview Size of the industry (2012- 13) is around USD 144 billion India accounts for approximately 16% of the world production of dyestuff and dye intermediated The polymer demand is expected to grow by 8-10% with a healthy growth in clothing, automobiles, etc. 4th largest consumer of crude oil and petroleum products in the world (2013) Oil imports constitute 80% of India’s total domestic oil consumption (May 2014). At the end of 2013, India had 215.066 MMTPA of refining capacity, making it the second-largest refiner of crude oil in Asia. • 2nd largest textile manufacturing capacity globally • Sector contributes 14% to industrial production and 4% to GDP and 13% of country’s export earnings • Domestic textile and apparel industry is estimated to reach USD 100 bn by 2017 from USD67 bn in 2014. • Exports are expected to increase to USD 65 bn by 2017 from USD 40 bn in 2014 Investment opportunities Petrochemicals Specialty chemicals Agrochemicals Colorants Technical training Underground coal gassification 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 the automatic route subject to all the applicable regulations and laws. FDI is subject to the existing sectoral policy and regulatory framework and varies across the value chain • 100% FDI is allowed under the automatic route in textile sector Investment Opportunities — Across Sectors