Presented by Salim Papuani

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).

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.

What we are import ?

• 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).

What we are exporting ?

Imports & 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.

On independence day 2014

• 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.

What is Make in india ?

• Make in india is an international marketing campaigning

slogan coined by Narendra Modi, The prime minster of

india on 25th september 2014 to attract businesses from around the world to invest and manufacture in india.

• Make In India is a new national program designed to transform India into a global manufacturing hub

• Through Make In India initiative government will focus on buildingphysical infrastructure as well as creating a digital network.

Major Objectives

• The major objective behind this initiative is to focus upon the heavy industries and public enterprises while generating employment in India.

• To facilitate– Investment

– Foster innovation

– Enhance skills development

– Protect intellectual property

– To built best-in-class manufacturing infrastructure

Focus on different sectors

• The focus of “make in India” program is on creating jobs and skill enhancement in 25 sectors

Sector wise contribution on GDP

• Manufacturing contributes 17% of India’s GDP compared to 69% that comes from

services and 14% from agriculture

• And, of the 474 million Indians who are gainfully employed, only 100 million do

manufacturing jobs compared

to 232 million who work on farms and 142 million employed in the services

businesses

• Between 2004 and 2011 manufacturing sector has

registering annual growth of around 7.25 per cent

14%

17%

69%

SECTORAL COMPOSITION OF INDIA GDP

AGRICULTURAL INDUSTRIAL SERVICE

Automobile sector

Passenger Vehicle are to increase at a CAGR of 16% between 2013-20Growing Working Population and expanding middle classIncreasing disposable income in rural agri-sectorFavourable government policies like lower excise duties, automotive mission planEasy finance schemes owing to which the auto finance industry has grown at therate of 13% between 2008-13

Growth Driver

By 2015 India is expected to be fourth largest automotive market volume in theworldIndia’s car market has the potential to grow 6+ million unit annually 2020Emergence of large automobile clusterAn R&D: Strong support from the government

Reason to invest

100% FDI is allowed in automatic route

FDI policy

IT & BPM

Revival in demand for IT services from US and EuropeIncreasing adoption of technology and telecom by customersHigh value client additions bigger than USD 1 million registering 13.5%growth

The IT-BPM sector contributes 8.1% of the country GDPIndia’s IT industry amounts to 7% of global marketRapidly growing urban infrastructure has fostered several IT centres

Upto 100% is permitted under automaticroute

Growth Driver

Reason to invest

FDI policy

Food processing

Liberalization and growth of organized retailRising income level and growing middle classFavourable economic and cultural transformation and shift in attitudes and lifestyle

A rich agricultural resource baseA low cost of skilled manpowerAttractive fiscal incentives by state and central government in the form ofsubsidies, Tax rebates etc42 mega food parts are setup in PPP at an investment of 98 billion rupees

100% FDI is permitted in automatic route for most product

Growth Driver

Reason to invest

FDI policy

Textile and Garments

Rising per capita income ,favorable demographics and shift in preference forbranded productsIncrease in domestic demand is set to boost cloth productionFavourable policies of government of IndiaExpansion of retail sector with many global players entering the market

Growth Driver

Second largest manufacturing capacity globallyAccounts for 14% of world production of textile fibre and yarnAbundant raw materials and increasing demand for exportsIncreased penetration of organized retail

Reason to invest

100% FDI is allowed in automatic route

FDI policy

Road and highways

An outlay of USD 3.8 billion for the highway sector has been provided in2013-14The GOI aims to develop a total of 64340 Kms of national highwaysUnder various programmesThe rise in four wheeler and two wheeler vehicle ,Increasing freight traffic,strong trade will augument growth

Growth Driver

The transport sector constitutes 6% of country GDP and 70% share of road sectorEmergence of private sector as a key playerEstablishment of major initiatives by GOI to upgrade highways in the country

Reason to invest

FDI policy

100% FDI is allowed under automatic route

Construction

India has a housing shortage of 65 million dwelling unitsIntroduction of new urban development mission which will help inthe development of cities

Growth Driver

An investment of USD 1000 billion has been projected for infrastructuresectorEase access to funding for the sectorConstruction activities contribute more than 10% of India’s GDP

Reason to invest

Different levels of FDI based on differentparameters

FDI policy

INDUSTRY POTENTIAL

I

58.5

145

0

20

40

60

80

100

120

140

160

2011 2016year

Automobile

Billion

67

100

0

20

40

60

80

100

120

2013-14 2016-17

Industry size

Year

Textile and garment

78

140

0

20

40

60

80

100

120

140

160

2013 2017

Real estate market

USD billion

The total turnover of automobile sector in2010-11 was USD58.5 billion ,turnover by2016 is slated to be USD 145 billion

The domestic textile and apparel industryin India is estimated to reach USD 100billion by 2016-17 from USD 67 billion in2013-14

As per the industry estimate ,the IndianReal estate market is estimated to be USD78billion in 2013 and is expected to growto USD 140 billion

Drivers assumption Development of industrial cluster and new smart cities will foster India’s manufacturing

infrastructure and innovation capacity

India’s high value industrial sectors-Defence ,Construction and railways are now open to globalparticipation

Policy in Defence sector liberalised and FDI cap raised from 26% to 49%

100% FDI under automatic route permitted in construction ,operations and maintenance inspecified rail infrastructure projects

Opportunity for domestic companies having leadership in innovation and technology to turnthemselves into a global champions

Increasing Venture capital and private equity activities will further provide the impetus to thedomestic companies

Implementation of major reforms could push India’s Gross Domestic Product to over $4.5trillion by FY20

Sme’s contribute 90% of all industrial units and 40% export within the manufacturing sector

According to Justin Lin ,A former chief economist at the world bank, China willshed 85 million manufacturing jobs in the next few years because of the fast risingwages. India can attract some of these jobs if it can cut bureaucratic hurdles thatscare away new business.

Process of applying to industrial licence made online on 24X7 basis

through e-biz portal

Services of all central government will be integrated with the E-biz

Validity of industrial licence extended to three years

All return should be filed online through a unified form

Doing business in India just got easier-new delicencing and deregulation measures are reducing complexity, and significantly increasing speed and transparency

Ease of Doing Business

Barriers

• The manufacturing sector has performed poorly by recording a expansion ofbarely 1.1% growth in 2012-13 followed by a contraction of 0.7% in 2013-14Boost to Manufacturing sector

• From 2010 to 2012,the country’s stock of FDI just totalled 12% of GDP whilethe developing country average was 30%Need to increase FDI

• The growth has continued to slow down and has been running below 5% forthe last 2 years .For a massive increase in the growth rate by 4% to GDP,$ 200billion of FDI would be needed

Help in reviving growth

Low share of manufacturing

Lack of ease of doing business

The current share of manufacturing sector to India’s GDP is only 15%.It compares poorly to other Asian nations

India ranks 134th out of 189 countries in World Bank ease of doing business Index.The world bank report notes that it takes 27 days to start a business in India.In

Singapore it takes two and a half days

THANK YOUTHANK

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