Make in India key note address delivered at SIES, Nerul Navi Mumbai

Make in India key note address delivered at SIES, Nerul Navi Mumbai

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  The Way Aheadfor Excellence in Manufacturing and Service Sector Key Note Address at SIES on 14 Feb-2014
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  Why “Make inIndia”???  India had fallen to a lowly 134th rank out of 189 countries this year (three down from 2013) in the World Bank’s Ease of Doing Business rankings  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.  Manufacturing value added as a share of GDP in 2013 is 12.89% which is lower than Pakistan (13.89%) and Bangladesh (17.55%)  India’s chronic infrastructure and logistics deficit with inefficient transport networks makes it tough for manufacturing companies to achieve just-in-time production  From furniture and gadgets to industrial equipment, India is importing almost all products from its neighbor, even yarn for saris  It is estimated that over 99 per cent of Bangalore silk saris are being made with Chinese silk yarn  And so on ……..
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  India vis-à-vis China India exported goods of worth $15 billion to China and imported goods of worth $51 billion in 2013 from China  Confederation of Indian Industry estimates China enjoys cost benefit of about 10% over Indian manufacturing  Labor Market Efficiency out of 138 countries is 99 for India and 34 for China  Manufacturing contribution to GDP 12.9% for India and 31.8% for China  Share in global manufacturing exports 1.6% and 17.5% respectively  Share in global manufacturing employment 5.6% and 34% for China
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  Make in India– Right time to get in  An index of manufacturing costs created by the Boston Consulting Group (BCG) of the world’s 25 biggest exporters shows China’s traditional cost advantage is now under pressure  Just-in data from the International Monetary Fund show that China is no longer the largest trade surplus economy in the world  Here is an opportunity “Make in India” must tap in  U.S. Bureau of Labor Statistics publishes:  Average labor compensation in India’s manufacturing sector increased only, from $0.68 an hour in 1999 to $1.50 an hour in 2014  The average compensation in China’s manufacturing sector rose 20 percent year-on-year in the same period to $3 an hour  A nearly 500-million-strong labor force comprising unskilled workers and English-speaking scientists, researchers, and engineers
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  Make in India- – Right time to get in  In 2013, only 15% of GDP which need to be enhanced to 25% by 2022 for creating more job opportunities  India rich in natural resources  Labor is aplenty and skilled labor is easily available given the high rates of unemployment among the educated class of the country  With Asia developing as the outsourcing hub of the world, India is soon becoming the preferred manufacturing destination of most investors across the globe  10% growth is targeted annually fro manufacturing sector Make in India is all about harnessing this demand and boost the Indian economy
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  M A KE I N I N D I A - A m a j o r i n i t i a t i v e  Making India a manufacturing hub and economic transformation in India  Eliminating the unnecessary laws and regulations  Making bureaucratic processes easier and shorter and make government more transparent, responsive and accountable  Facilitating the time-bound project clearances through a single online portal and by the eight- members team to answer queries within 48 hours  Addressing key issues including labor laws, skill development and infrastructure  Create 100 million jobs by 2022
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  M A KE I N I N D I A - O b j e c t i v e s  PM Narendra Modi launched make in India announced on 15 August 2015 and on 25 September 2014  National program designed to transform India into Global Manufacturing Hub  Converting India to self-reliant country  Make in India programme includes major new initiatives designed to  Attract investment  Foster innovation  Enhance skills development and create job opportunities  Protect Intellectual Property  Strengthen manufacturing sector  Identified 25 key sectors to focus on
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  25 Key Sectors– Manufacturing and Services
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  Make in IndiaFramework  New processes  New infrastructure  Sectors  New mindset  IPR Protection Creating conducive environment for manufacturing and services sectors to enable Indian economy to be among the top ones
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  M A KE I N I N D I A - N e w p r o c e s s e s  Licenses application licenses on line  Self-certifications  De-regulation for duals items used in defense or other industries  eBiz – a single window IT platform for services  Clearances on-line – Environmental, etc.  Returns through online unified forms  Checklists of required compliances  Electronic registers to replace hard-copy registers  Check on Inspector Raj - No inspections without approval of HOD
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  M A KE I N I N D I A - N e w i n f r a s t r u c t u r e  Industrial corridors and smart cities  New Industrial clusters to promote advanced manufacturing  17 National Investment and Manufacturing Zones  Nurturing Innovation through  Compliance with global standard  Online processes  Skill development through  Augmentation of training infrastructure  Already more than 51,216 youths trained with annual capacity of 144,000 youths  4 branches for Footwear Design and Development
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  M A KE I N I N D I A - N e w S e c t o r s 1. Policy in Defense sector liberalized and FDI cap raised from 26% to 49%. 2. Portfolio investment in Defense sector permitted up to 24% under the automatic route. 3. 100% FDI allowed in Defense sector for modern and state of the art technology on case to case basis. 4. 100% FDI under automatic route permitted in construction, operation and maintenance in specified Rail Infrastructure projects such as: a) Suburban corridor projects through PPP b) High speed train projects c) Dedicated freight lines e) Rolling stock including train sets and locomotives/coaches manufacturing and maintenance facilities f) Railway electrification g) Signaling systems h) Freight terminals i) Passenger terminals j) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivity to main railway line k) Mass Rapid Transport Systems 5. Easing of norms underway for FDI in the Construction Development sector
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  M A KE I N I N D I A - N e w M i n d s e t  Most importantly, the Make in India program represents an attitudinal shift in how India relates to investors:  Not as a permit-issuing authority, but as a true business partner  Dedicated teams that will guide and assist first-time investors  Focused targeting of companies across sectors
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  Make in India– Services Sector  India has the second fastest growing services sector in the world with a compound annual growth rate at 9 per cent, just below China's 10.9 per cent, during 2001 to 2012, the Economic Survey said  Access to banking services  Expanding the penetration of banking infrastructure into rural areas to make access easier and more affordable for account holders  Potential solutions include creating low-cost service models that offer incentives to multiple industry participants (such as telecom providers, banks, and payment providers), improving digital literacy, and e ..  Use of technology-enabled solutions such as massive open online courses (MOOCs) to enhance the reach and quality of vocational education is gaining ground
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  MAKE IN INDIA- What is in news? http://zeenews.india.com/ on January 17, 2015 "Japan will contribute to Prime Minister Narendra Modi's 'Make in India' initiative to support India in becoming a base of economic growth for the Indo- Pacific region and the world," Japanese Foreign Minister Fumio Kishida said in.reuters.com on Feb 5, 2015 Chinese telecom company Huawei Technologies Co Ltd has invested $170 million (Rs 1,037 crore at 1 dollar = 61 rupees) to open a research and development centre in India as it ties itself to Prime Minister Narendra Modi's 'Make in India' campaign, the company said on Thursday. http://profit.ndtv.com/ on 25 Sep 2014 Reliance Industries Chairman Mukesh Ambani on Thursday described The launch of Prime Minister Narendra Modi's "Make in India" campaign as a "historic" day for Indian industry and said his company will create 1.25 lakh new jobs over the next 12-15 months as part of the movement. http://www.thehindu.com/ October 26, 2014 Havells, Godrej, Micromax and auto- components maker Bosch are amongst a handful of companies that have recently moved back to India some part of their manufacturing or outsourcing in China owing to currency, labour and other cost advantages.
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  http://www.moneycontrol.com/on 25 Jan2015 Make in India campaign' touches right chord at somewhere in the minds of the global community and now it is up to us to convert the sentiments into ground reality by proper follow-up and suitable actions” – Mr. Shriprakash Shukla, Group Strategy Chief at M&M at World Economic forum (WEF) MAKE IN INDIA - What is in news? http://www.dnaindia.com/ on 13 February 2015 IT hardware industry body MAIT has asked the government to consider giving duty relief and export sops to boost the domestic electronic manufacturing sector. The industry body its members have already invested over $2 billion in ICT manufacturing facilities across India and are looking to attract more investments. Urging the Prime Minister to consider the recommendations, MAIT said it will continue to actively engage and jointly work with the government towards making 'Make In India' a success. http://timesofindia.indiatimes.com/ on 13 February 2015 A four-day industrial expo, 'NIMA Index-2015', which will be organised by Nashik Industries & Manufacturers' Association (NIMA) from April 24, will focus on new engineering technology for making Nashik a manufacturing hub in view of the 'Make in Maharashtra' drive launched by chief minister Devendra Fadanvis on the lines of 'Make in India'.
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  References  http://www.makeinindia.com  http://en.wikipedia.org/wiki/Make_in_India http://www.thehindu.com/sunday-anchor/sunday-anchor-make-in-india-vs- make-in-china/article6533575.ece