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Business Unit

India - Japan A winning partnership

August 2014

Strictly Private and Confidential

India and Japan: A winning partnership

New Government, new directions for a vibrant economy

3 India - Japan • A winning partnership

India is one of the fastest developing economies in the world and ranks among the most sought after investment destinations

• 3rd largest economy in terms of purchasing power1

• The 9th Global Capital Confidence Barometer, October 2013, has reported India among one of the top five investment destination among emerging and developed markets2

• India is ranked as the most attractive investment destination, ahead of Brazil & China2. India accounts for 5.5% of global FDI in terms of value and 6.3% in terms of projects2

• India is the fourth most attractive location for FDI for 2014-2016 as per UNCTAD Report 2014

• India ranks 2nd Most Promising Country for Overseas Business Operations in the Medium Term4;

• India has been rated as Top Investment Destination for the Long Term5


Source: UNCTAD, World Investment Report 2014

Sources: 1World Bank ; 2Ernst & Young Attractiveness Survey 2014; 3UNCTAD’s World Investment Report, 2013; 4JBIC survey report on Overseas Business

Operations by Japanese Manufacturing Companies, 2013; 5JBIC 2011 Survey;

Top 10 prospective host economies for 2014-16

0 10 20 30 40 50

10 Russian Federation

9 Vietnam

8 Thailand

7 UK

6 Germany

5 Brazil

4 India

3 Indonesia

2 USA

1 China

Increase in foreign investments and industrial growth during the May-July period shows the restored confidence in the economy and the new government


Source: DIPP

1444

1927

0

500

1000

1500

2000

2500

June 2013 June 2014

M-o-M FDI Equity Inflows (in USD million)

33%

-1.7 -1.8

1.8

3.4

-3

-2

-1

0

1

2

3

4

Manufacturing IIP

Monthly growth of Manufacturing and overall IIP (%)

Jun-13 Jun-14

• FDI inflows have increased 80% in the months of May-June 2014 (combined) over the same time period in the preceding year

• M-o-M FDI equity inflows have increased 33% in June 2014 compared to June 2013

• Overall Index of Industrial Production (IIP) has grown by 3.4% in June 2014 as compared to 1.8% in June 2013

• Growth rate of Capital goods in IIP has shot up from -6.6% in June 2013 to +23% in June 2014

• Purchasing Managers Index (PMI) as on 1st August 2014 was at 17-month high

• Manufactured exports have recorded 6.6% growth in July 2014 as compared to July 2013

Japan and India – a winning relationship

India - Japan • A winning partnership 6

18%

29%

53%

Agriculture Industry Service

GDP at PPP USD 4.62 trillion (4th largest in the world) Nominal GDP USD 4.90 trillion (3rd largest in the world)

GDP at PPP USD 6.77 trillion (3rd largest in the world) Nominal GDP USD 1.87 trillion (10th largest in the world)

Developed country with 1.5% average growth rate One of fastest growing countries with GDP growth rate projections of ~6.5% till 2020

1.2%

27.5%

71.4%

Agriculture Industry Service

GDP Composition

Japan and India share a long history of mutual trust and India offers an array of opportunities for Japanese investors


Source: IMF; World Bank Databank, 2013, India Economic Survey Report 2013-14

Japan-India are Natural Partners

Japan: labour-scarce, abundant capital and technology complementing India’s human capital assets

87% of deposits in India < 5 years thus Japanese long-term savings can be used for Infrastructure development

In the next 30 years India is going to build more than it has in the last 5000 years

India fits in with Japan’s growth

plan thus a partnership is a

“win-win” for both

Japan is the 4th largest FDI contributor to India, with major interests in pharmaceuticals, automobiles and services sectors

Japan accounts for 7.46% of total FDI equity

inflows into India


Source: DIPP

0

10

20

30

40

50

60

70

80

90

US

D b

illi

on

Trend of country wise total FDI of key contributors (during April 2000- June 2014)

Drugs & Pharmaceutic

als 28%

Automobiles 16%

Services sector 15%

Metallurgy 9%

Electrical equipments

4%

Others 28%

Share of top sectors attracting FDI equity from Japan

Top Japanese companies investing in India between 2000-14

1. Daiichi Sankyo 2. JFE Steel Corporation 3. Nippon Life insurance 4. Nissan Motors 5. Matsushita Electrics Works 6. Sumito Mitsui Banking Corp 7. Honda Motor 8. Hitachi Construction 9. Suzuki Motor 10. Mitsui Sumitomo Insurance

Note: Services sector includes Financial, Banking, Insurance, Non-Financial/Business, Outsourcing, R&D, Courier, Tech. testing and analysis

India is the 2nd most promising region for Japanese business operations as per JBIC survey (2013)

As per the JBIC survey report on Overseas Business Operations by Japanese

Manufacturing Companies, ~90% of the respondents voted “future growth

potential of local market” as the top reason for India’s attractiveness


Source: JBIC survey report on Overseas Business Operations by Japanese Manufacturing Companies, 2013

1. Future growth potential of local market”

2. Inexpensive source of labour

3. Current size of local market

4. Supply base for assemblers

5. Base of export to third countries

Top 5 factors identified in favour of investments in India

Bilateral trade between India and Japan has consistently grown over the last decade and remained unaffected by the global economic slowdown

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2003-04 2005-06 2007-08 2009-10 2011-12

US

$ b

illi

on

Imports by India Exports By India

Japan is one of India’s largest trading partners

India’s Current Imports from Japan India’s Current Exports to Japan

• Boilers, machinery and mechanical appliances, parts

• Electrical machinery, equipment, parts • Iron, steel and alloys • Electronic Products • Photography & Cinematography equipment • Chemicals & Allied Products

• Mineral fuels, mineral oils and products of their distillation

• Ores, slag and ash • Diamonds, jewellery and pearls • Marine Products • Petroleum, Inorganic & Organic Chemicals • Cotton Garments and Textiles

Source: Department of Commerce, GoI


Significance for Japan – Trade

Trade in Service

To be promoted and greater transparency of rules

India: Telecommunication Services, Distribution Services, Financial Services

Natural Person Movement

Social security agreement: Consultations started

Nurses and care-workers: Negotiations for acceptance into Japan

Generic medicine: national treatment provided for approvals of release

Mutual Recognition Arrangements TBT/SPS

Tariff elimination on 94% of bilateral trade

Approximately 97% by Japan and 90% by India Bilateral trade

India: 200 million middle class people, growing market potential Increased

access to large markets

Japan-India Comprehensive Economic Partnership Agreement (CEPA)


Japan-India Comprehensive Economic Partnership Agreement (CEPA)

Significance for Japan – Other Areas

Business environment improvement

India: committed to liberalize its telecom, financial and distribution sectors

Facilitate more investment flow from Japan to India as it provides an atmosphere conducive for Japanese companies to establish their manufacturing base in India

Enhanced Cooperation

Various areas including environment, trade and investment promotion

No discrimination between suppliers

Transparency in procurement measures

National level information exchange on policies and practices

Government Procurement

Possibility of patent protection

Protection of well known trademarks

Trademark applicant can file for accelerated examination

Intellectual Property

Pre-Investment: National treatment provided, prohibition of performance requirements

Post-Investment: All basic provisions of an investment treaty, Additionally national treatment

Investment

This experience should be positive to move cooperation up the Value Chain to manufacturing


Source: Survey on “Number of Japanese Affiliated Companies in India 2013

Delhi (175） Hitachi, SONY, Sharp, Yakult, Rohot、Banks, Trading Firms etc.

Maharashtra（397） Kagome, Shiseido, Asahi Kasei, Bank, Insurance, Security, Shipping,etc. (in Mumbai) Mitsubishi Elec, Ymazaki Mazac, Kawasaki , Bridgestone, etc (in Pune)

Haryana（325） SUZUKI, HONDA, Auto parts suppliers , Manufacturing, Sales companies, etc.

Gujarat（84） Hitachi, Yazaki, TOTO, Toray, Mitsubishi Heavy Indu. etc.

Rajasthan（79） HONDA, Daikin, Uni Charm , Otsuka Chemical, Auto parts Suppliers, etc.

Uttar Pradesh（72） HONDA, YAMAHA, Auto Parts Suppliers etc.

W・Bengal（96）

Mitsubishi Chem., Hitachi Construction Machine., NRI, NSSC, Trading firms etc.

Andhra Pradesh（229） Toshiba Plant Systems, Aishin, Eisai Ajinomoto, Isuzu, KOBELCO, etc.

Tamil Nadu（523） NISSAN, Toshiba, Komatsu, Panasonic, Auto Pats Suppliers, etc.

Karnataka（299） TOYOTA, HONDA, Fanac, NISSIN Foods, CICHIZEN, Fujitsu, Auto Parts Suppliers, etc.

Legend: Name of State (Number of business bases)

Over the last decade, the number of Japanese establishments in India have increased by ~11 times, reflecting the positive sentiments of Japanese investors for Indian market

India is an attractive investment destination for Japanese companies, with 1,072 Japanese companies having 2,542 business bases in India


Strategic opportunities for Japan


The new Government has prepared a five pillar strategy to drive India’s growth, which offer multiple avenues of collaboration and investments for Japanese investors


Infrastructure development

Manufacturing growth, Employment creation

and promoting entrepreneurship

Energy sufficiency

Skill development Business environment improvement

Government is focused on improving both the industrial infrastructure as well as the urban infrastructure of the country and has announced several high impact projects in the sector


Urban infrastructure

1. Smart Cities

2. Affordable housing

3. Swachha Bharat project

4. Digital India

Industrial infrastructure

1. Industrial corridors

• Delhi Mumbai Industrial Corridor (DMIC)

• Chennai Bengaluru Industrial Corridor (CBIC)

• Vizag Chennai Industrial Corridor (VCIC) as first phase of East Coast Economic Corridor (ECEC)

• Bengaluru Mumbai Economic Corridor (BMEC)

• Amritsar – Kolkata Industrial Corridor (AKIC)

2. Transport connectivity to North East India

The upcoming industrial corridors provide potential opportunities for Japanese investments across different infrastructure sub-sectors


East Coast Industrial Corridor

• To promote manufacturing in India, five new Industrial Corridors are being planned.

• Each Industrial Corridor will have at least 6 – 8 key nodes developed on Smart City principles measuring more than 200 sq. Km

• DMICDC is the apex authority that is planning these corridors.

DMIC is being developed as a flagship project of partnership & collaboration with Government of Japan and offers several opportunities for investors from Japan


GoI is developing DMIC as a global manufacturing and

investment destination utilizing the 1,483 km-long, high-capacity

western Dedicated Railway Freight Corridor (DFC) as the

backbone.

Nodes Area (sq km)

Ahmedabad Dholera Investment Region 920

Manesar-Bawal Investment Region, Haryana 402

Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan

165

Pithampur-Dhar-Mhow Investment Region, M. P. 372

Dadri-Noida-Ghaziabad Investment Region, U.P. 200

Dighi Port Industrial Area, Maharashtra 253

Shendra Bidkin Industrial Park, Maharashtra 84

Key early bird projects Budgetary Support by GoI (Rs mn.)

Vikram Udyogpuri, near Ujjain, Madhya Pradesh 595

Integrated Industrial Township at Greater Noida, UP 6,172

Water Supply Project, Madhya Pradesh 704

Construction of New Rail Line between Bhimnath and Dholera SIR, Gujarat

243

Logistic Data Bank 372

Model Solar Power Project, Neemrana, Rajasthan 353

CBIC is the second corridor project under Japanese Government partnership; aimed at improving the industrial infrastructure and increasing the Japanese investments across multiple sectors in the region


Key nodes identified State

Bidadi Township Area, Ramanagara KAR

Vasanthnarasapura area in Tumkur KAR

Mulbagal in Kolkar KAR

Ponneri Industrial Area TN

Hosur Industrial Area TN

Hindupur Industrial Area AP

Chittoor NIMZ AP

Krishnapatnam Industrial Area AP

A total of 25 priority projects across various sectors have been identified for debottlenecking infrastructure bottlenecks in the region in the preliminary study conducted by the Japan International Cooperation Agency (JICA). The progress on these projects is being regularly monitored at the level of PMO.

The corridor between Chennai – Bengaluru – Chitradurga (around 560 km) would have an Influence Area spread across the states of Karnataka, Andhra Pradesh and Tamil Nadu.

The Vizag Chennai Industrial Corridor is a part of the East Coast Economic Corridor, aligned to the Golden Quadrilateral and is envisaged to play a key role in India’s Look East Policy


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Successor state of AP*

Tamil Nadu

NH 5 alignment

1.Visakhapatnam

2. East Godavari

3.West Godavari

4. Krishna

5. Guntur

6. Prakasam

8. Kadapa

9.Chittoor 11.Chennai

10.Tiruvallur

7.Nellore

In view of the commitment made by the central government under the Andhra Pradesh Reorganisation Act, 2014, in the first phase of the study the ADB will focus on the Vizag-Chennai Section so that a final view on the Vizag-Chennai Industrial Corridor may be taken within the timeline prescribed in the Act and further action taken accordingly.

Key attributes of the corridor

• The Corridor contributes to 5% of national GDP

• Influence area of the corridor is over 110,000 sq. km which is 3.5% of India’s area

• Industrialization will be supplemented by natural resources available in the region (natural gas, minerals, agriculture products).

• The major ports are well connected and in close proximity to many of the East Asian economies (~80% of AP’s coastline) The corridor between Vizag - Chennai (around

800 km) would have an Influence Area spread across the states of Andhra Pradesh and Tamil Nadu.

GoI has announced 100 Smart City projects across 21 states with a view to provide a fillip to the urban infrastructure in the country


New Delhi

Chennai (Madras)

Shvassa Daman Diu Raipur

Bhopal Gandhinager

Bhubaneshwar

Lucknow

Delhi

Chandigarh

Srinagar

Mumbai (Bombay)

Panaji

Trivandrum

Kavaratti

Cuddalore

JAMMU AND KASHMIR

TAMIL NADU

LAKSHADWEEP

GOA

KARNATAKA

ANDHRA

PRADESH

MAHARASHTRA

ODISHA

CHHATTISGARH MADHYA PRADESH

DAMAN AND DIU DADRA AND

NAGAR HAVELI

RAJASTHAN

WEST

BENGAL

JHARKHAND

BIHAR UTTAR

PRADESH

DELHI NCT HARYANA

PUNJAB

UTTARAKHAND

SIKKIM

MEGHALAYA

TRIPURA MIZORAM

MANIPUR

ASSAM NAGALAND

ARUNACHAL PRADESH

GUJARAT

HIMACHAL PRADESH

KERALA

PUDUCHERRY

PUDUCHERRY

BHUTAN

NEPAL

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5 TELANGANA

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• The Government has allocated Rs. 70.60 billion in the General Budget to develop the 100 Smart Cities in the country.

• To encourage development of smart cities, with respect to FDI in the construction development sector, the condition for built up area reduced from 50,000 sq. m to 20,000 sq. m and minimum capitalisation norms reduced from USD 10 million to USD 5 million, with three years lock-in.

Source: GoI General Budget, 2014-15

Smart Cities in India is a potential opportunity in the urban infrastructure space for the Japanese investors

GoI is also focused around other urban infrastructure aspects of Affordable housing and Sanitation, and has set definitive goals in these areas


• The Government has announced to set up a Mission on Low Cost Affordable Housing anchored in the National Housing Bank

• A sum of Rs. 4,000 crore for NHB is provided with a view to increase the flow of cheaper credit for affordable housing

• Projects which commit at least 30% of total project cost for low cost affordable housing to be exempted from the built-up and capitalization conditions

The Government intends to cover every household by total sanitation by the year 2019, the 150th year of the Birth anniversary of Mahatma Gandhi through Swatchh Bharat Abhiyan.



Government is committed to promote manufacturing and employment. The NMP lays the foundation for larger contribution of manufacturing sector in GDP


Objectives of National Manufacturing Policy (NMP):

• To promote investments in the manufacturing sector and make the India a hub for both domestic and international markets

• To increase the sectoral share of manufacturing in GDP to 25% by 2022 (from about 15% presently)

• To double the current employment level in the manufacturing sector

• To enhance global competitiveness of India’s manufacturing sector

• NMP proposes setting up of National Investment and Manufacturing Zones (NIMZs), which would be much larger than SEZs in area (can be viewed as a cluster of smaller industrial areas . SEZs, EoUs etc.)

• A comparison of SEZ and NIMZ Policy reflects Government’s willingness to ease the overall burden on a private developer

Sectors of Strategic Importance

Defence Equipment

Aerospace

Ship-building & Repair

Capital Goods & Engineering

Sectors of Basic Inputs

Steel

Mineral Exploration and Development

Fertilizer

Cement

Sectors for Depth and Value Addition

Automotive

Electronics

Drugs & Pharma

Chemical

Petrochemicals

Paper

Sectors for Employment Generation

Textlies

Food Processing

Leather & Leather Goods

Gems and Jewellery

Source: NMP 2011

25

Auto Auto components Defence

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)

Key Japanese investors

Suzuki, Nissan, Toyota, Isuzu, Mitsubishi

Aisin Seiki, Denso, Toray, Shiroki, Mitsui metal, Kikuwa

-

India has the potential to offer myriad of opportunities for the Japanese investors across a wide gamut of manufacturing sectors (1)

India - Japan • A winning partnership

26

Electrical Equipments ESDM Pharmaceutical

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


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.


Toshiba, Hitachi, MHI Panasonic • Nipro Corporation, Otsuka, Sankyo Daichi, Yoshindo


Opportunities

27

Construction Food Processing Leather

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.


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.


- Nissin, Kagome, Toyo Suisan -

Opportunities


28

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


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


Toyo Ink, JX Nippon - • Nissinbo • Marubeni


Opportunities

Energy Sufficiency through Thermal Power and Renewable Power are high on Government’s agenda


Source: Ministry of Power; Council of Power Utilities; Bureau of Energy Efficiency; India Brand Equity Foundation

0

1000

2000

3000

4000

5000

World’s leading electricity producers in 2012 (TWh)

68%

18%

12% 2%

Sources of Power with shares in total installed

capacity

Thermal Hydro Renewable Nuclear

Fifth largest producer and consumer globally

• With a production of 1,006 TWh, India is the fifth

largest producer and consumer of electricity in the

world

Power generation and installed capacity has grown rapidly over the years

• Over FY07–13, electricity production expanded at a

CAGR of 5.5%

• Installed capacity increased steadily over the years,

posting a CAGR of 10.9 per cent in FY09–13

Strong policy support to further incentivize power sector

• Policies such as Electricity Act, 2003, National Tariff

Policy, 2006, Ultra Mega Power Projects (UMPPs),

R-APDRP and fuel supply agreement are aiding

growth of the sector

The energy sector is one of the most developed and organised sectors in India

The energy sector is full of varied opportunities in the thermal and renewable energy sector


Source: Ministry of Power; Ministry of New and Renewable Energy; India Brand Equity Foundation

Growing demand

• Expansion in industrial activity to boost demand for electricity

• Growing population and increasing penetration and per-capita usage to provide further impetus

• Power consumption is estimated to increase from 821.2 TWh in 2013 to an estimated 1433.2 TWh in 2022

Attractive opportunities

• Large capacity additions (189GW) targeted in the 12th and 13th Five-Year Plans

• Ambitious projects and increasing investments across the value chain

• Diversification into renewable sources increasing growth avenues

Policy Support

• Elimination of Licensing for various segments; removal of entry barriers

• Cost reduction and rationalization of tariffs; development of UMPP

• Fuel supply agreement of power producers with Coal India

Higher Investments

• FDI inflows touched USD7.8 billion between April 2000-March 2013

• Major investments earmarked by public as well as private sector companies across the value chain

Advantage India

Industry responsive skill development is one of the key focus areas of Government

As the economy races ahead, the need for skilled and qualified labour will only escalate. To bridge this gap and to impart industry specific learning, GoI (through DMICDC) will be setting up training centres across all manufacturing cities. The modules will be designed as per industry standards and will broadly cover automobile and auto-components, general manufacturing, chemicals, garments, petrochemical and pharmaceutical sector.

To support the auto component, IT/ITES and Biotechnology sectors and offer training in Maritime/ ship engineering courses, a Knowledge Hub/skill upgradation center would be imperative at Dholera. To support the engineering, ceramics, chemicals, IT/ITES and Biotechnology sectors, a Knowledge Hub/skill upgradation center is proposed to be developed with integrated infrastructure facilities.

Gujarat

To support the IT/ITES/Biotech Hubs as well as the other industries in the investment region, a Knowledge Hub/skill up gradation centre would be imperative. It is advisable to set it up in the area, which is close to the National Capital Region and has a substantial "trainable" population. Potential sectors could include Agro Processing, Engineering, Leather/ Handicraft and IT/ITES/Biotechnology sectors

Uttar Pradesh

To support the auto component, IT/ITES and Biotechnology sectors, a Knowledge Hub/skill up gradation centre would be imperative at Nimarana Rajasthan

Social sector engagement of Japan will instill the trust and confidence in the younger population


The new Government has proactively taken multiple steps to bring about process improvements….

Process improvement initiatives

• Process of applying for IL/IEM made completely online and 24X7

• ESIC/EPFO registration made on-line and real time, need for submission of hard copies removed

• States advised to introduce self certification and third party inspection for the Boilers Act

• All security clearances will be given by MHA within 3 months.

• Need for affidavit from entrepreneur obviated with issue of ‘Security Manual for Licensed Defence Industry’

• Requirement of License on a number of Defence List products removed

• Validity of Industrial License extended from 2 years to 3 years.

• Questionnaires on ‘Enforcing Contract’ and ‘Resolving Insolvency’ filled by Government of first time.

• Advisory sent to Ministries/State Governments:

• All returns to be made online

• Check list of all compliances to be put on web-site

• All registers to be replaced with one single electronic register

• No inspection without approval from Head of the Department

• Self-certification for non-hazardous/non-risk businesses



Labour related initiatives

• Unified Single Web Portal for Labour Law Compliance

• Initiated amendment of Factories Act, 1948 to allow for:

• Night shift for women

• Increased hours of overtime

• Compounding of Offences

• Rationalization of Returns and Register requirements

• Initiated amendment of Apprentices Act, 1961 to increase the percentage of workforce as apprentice and restrict inspections

• Single labour law for MSME to be introduced in December, 2014

• Evidence based inspections through Central Analysis and Intelligence Unit

Sector specific initiatives

• Defence sector

• Raised FDI limit in the Defence sector to 49%

• Railways sector

• Allowed 100% FDI in railway infrastructure sector, in areas such as high-speed train systems, sub-urban corridors and dedicated freight line projects implemented in PPP mode

….and labour & sector related initiatives to improve the overall “Ease of doing business” in India

eBiz Mission will transform e-governance beyond online transactions to delivering services to investors and businesses

• Offers a Single Window for businesses and investors and transparency in processing of requests

• Entrepreneurs to submit one integrated application for multiple licenses

• Single consolidated payment for the various licenses required by entrepreneurs

• Reduction in the number of procedures and correspondingly the cost and time taken for obtaining approvals

• 24 X 7Facility for Information and Services for businesses

• Eventually it will offer coverage of Entire Business Life Cycle


Source: DIPP

Thank you

I invite you to

“Make in India”


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