invest india
TRANSCRIPT
TRANSFORMINGINDIA
FASTEST GROWING ECONOMY
TOP INVESTMENT DESTINATION
7.6%2015
$55BEY
c
POPULATION
AVERAGE AGE
1.5B2030
292025
VOTERS
NEW VOTERS
834M2014
117M2014
2
INDIA CONVERGING
MISSION INDIA –Inclusive Growth
3
UNPARALLELED OPPORTUNITY
1.2 billion Broadband
Users(277 million)
Fastest growing ecosystem
400 million skilled workers
(18 million)
1.1 billionenrolments
DIGITAL INDIA STARTUP INDIA
SKILL INDIA
AADHAR
239 million bank accounts
JAN DHAN YOJANA
MAKE IN INDIASectors
Processes
Infrastructure
Mindset
NEW
EASE OF DOING BUSINESS
4
EASE OF DOING BUSINESS
Time-bound Insolvency
Process
BANKRUPTCY CODE 2015
Single Tax by April 2017
GOODS & SERVICES TAX
Promote innovation, strict
enforcement & expedited
process
IPR POLICY 2016
PRS for investors for 10
years
PERMANENT RESIDENCY STATUS
Simplified Compliance
COMPANIES ACT 2015
Open Economy
FDI POLICY 2016
Single portal for company
licensing and registration
eBIZ PORTAL
5
THE OPPORTUNITY:SECTORS
MAKE IN INDIA
6
MAKE IN INDIA
NEWSectors
Processes
Infrastructu
re
Mindset
Moved up
32 PLACES in 2 yearsGlobal Competitiveness
Rankings
7
INDIA UNLIMITED
Auto
$300 billion
Chemicals
$430 billion
Electronics
$400 billion
Auto Comp
$115 billion
Construction
$640 billion
Food
Processing
$320 billion
Aviation
$82 billion
Defence
$130 billion
IT / BPM
$350 billion
Biotech
$100 billion
Capital Goods
$112 billion
Leather
$30 billion
Media &
Entertainment
Pharma
$55 billion
Roads
$150 billion
Tourism &
Hospitality
$419 billion
Ports
$150 billion
SpaceWellness
$7 billion
Railways
$142 billion
Textiles
$223 billion
Mining
$80 billion
Renewables
$260 billion
Thermal
Power
Oil & Gas
$110 billion
INFRASTRUCTURE
8
SECTORS
US$ 1 trillion
investments
100% FDI
Power
Renewable
Energy
Ports
Roads40 km / day
(2017)
Railways $142 billion opportunity
300 GW (total installed capacity)
(Villages: 639,445 – To be electrified: 12,228)
175GW (Solar: 100 GW / Wind: 60 GW / Others: 15 GW): 2022
target
(Current: 43 GW capacity)
$57 billion Sagarmala Project
Smart
Cities107 smart cities
Housing for
All110 million houses
(20 million)
Aviation 250 airports
SMARTCITIES
9
SECTORS
107 Smart Citiesby 2022
Cities already
shortlisted
$15 bnbudgetary
support over next four
years
60
$150 billion
100% FDI
Shortlisted Cities
TELECOM
10
SECTORS
100% FDI
$103 billion
USD 37 BnMobile Services
Market
2nd Largest Smart Phone Market
Mobile (Wireless)• 616 million unique mobile
subscribers
• Fastest-growing smartphone
market in the world
Fixed Line (Wireline)• 25.95 million fixed line
subscribers in 2016
• 166 million broadband
subscribers,
Internet Services
• 350 million internet users
• 100 Mbps Connectivity to
250,000 villages
CAPITAL GOODS42.143 Bn USD Market Size
11
Category 2015 2025
Total Production $34.3 Bn $120 Bn
Employment 1.4 Mn
(Direct), 7 Mn
(Indirect)
5 Mn (D),
25 Mn (I)
Exports $9 Bn $45 Bn
Skill availability 5 Mn Skilled
Improving Technology, Standards and promote SMEs
Major Export Destinations
$0,4 $0,6
$1,4 $1,9
$2,3 $2,3
$2,9 $3,3
$3,6
Metallurgical Machinery
Plastic Machinery
Machine Tools Textile Machinery
Die, Mould & Press Tools
Food Processing Machinery
Printing Machinery
Earthmoving Machinery
Processs Plant Equipment
Heavy
Electrical
Machinery
$23.6
National Capital Goods Policy 2016
• Make In India Priority Sector
• Sub-sector-specific initiatives
• Technology Development Fund under PPP model for technology acquisition, purchase of IPRs, designs and drawings and commercialisation
• Start-Up Centre for Capital Goods in PPP
• Technology Depth
• Mandatory Standardisation
• Skill development
• Support services: continuous monitoring and reporting of data of production, export and import
• Centres of Excellence, Common Engineering Facility Centres
12
13
Earthmoving and
mining equipment
$3.25
BillionSize of the Market
$2.53
BillionTotal Production Capacity
$1.1
BillionTotal Exports
55.3% 5 Year CAGR - Exports
40 World class manufacturers
have base in India
4,6 4,25,1
3,9
6,5
9,9
0
2
4
6
8
10
12
FY10 FY11 FY12 FY13 FY14 FY15
Growth in Revenue from construction equipment (USD Mn)
Policy Promotion
100% FDI in construction
equipment
Simplified taxation norms for
leasing
Allow External Commercial
Borrowing to finance
domestic equipment
Allowed higher depreciation
(40% from current 15%) on
construction equipment: tax
burden reduced
Establishing Industrial
Training Institutes and
Infrastructure Equipment Skill
Council
Separate regulatory
framework and Act for off-
highway equipment
Existing Players
14
Electrical
machinery
Policy Promotion
Existing Players
831 862937
998 1 0021069
748
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16*
Energy requirement (BU)
Expanding Market ($Bn)
21
100
FY 15 FY 22
Generation
Equipment
19,3
45
FY 15 FY 22
T&D
Equipment
• Deen Dayal Upadhyaya Gram Jyoti Yojna
• Integrated Power Development Scheme for Smart
Infra in Cities
• 100% FDI: De-licensing of power
• Reduction in custom duties on a range of
engineering equipment
• Dedicated SEZs for the engineering sector
Electronics - India Advantage & Opportunities
Year Demand Supply Gap2015 $100 bn $31 bn $69 bn
2020 $400 bn $104 bn $296 bn
Investment Opportunity
500 new cities and 100 smart cities over phases under the new urban development mission
Manufacturing sector to grow from present 17% GDP contribution to 25% by 2022
Robotics and Automation , IT Services are at the core of Manufacturing Sector growth strategy
Development of Industrial Corridors
7 National Manufacturing & Investment Zonesplanned– more expected to follow
100% - Targeted rural tele-density by 2020
Growth in Telecom industry to act as a major driver of Indian semiconductor industry
2015
2020
Key Sub SectorsConsumer
ElectronicsAutomotive Electronics
Medical Electronics
$9.3 bn $3.3 bn $2.0 bn
$29 bn $10 bn $12 bn
Growth Drivers
Electronics - India Advantage & Opportunities
Government Initiatives
Electronic Development Fund
1.5 Bn USDNano-
electronics, IT, ESDM
DUTY BENEFITS(Promoting Make in
India)
Modified Special Incentive Package
Scheme(25% Capital Subsidy),
State Incentives
Preferential Market Access
(Preference to domestically
manufactured goods)
Semiconductors
Processors
Memory cards
Printed circuit boards (PCB)
LCD displays
LEDs, Consumer, Industrial Electronics
Defence Electronics
TV’s, Telecom Equipment
Mobile phones & Accessories
National Policy on Electronics
Electronic Manufacturing Cluster Scheme
targeting for 200 Electronic Manufacturing clusters by
2020
Digital India
Skill Development
Investment Opportunities
$100 bnInvestment by 2020
Technology Focus
• Incentivise FDI on long-term basis for high- tech manufacturing: High-technology manufacturing investment allowance increased to 25% from 15%.
• Industrial R&D definition extended till the point of commercial production: 0% tax deduction
• 2-year income-tax holiday for sale of goods emanating from a defined “new-technology” list by capital goods sub-sector.
• National IPR Policy 2016
• Sector- specific research funds: advanced material research, steel equipment research etc.
• Academia-industry interface organisations, associations.
• National Policy on Advanced Manufacturing under formulation: 3D printing, advanced robotics, Industry 4.0, etc
• Increase international R&D cooperation: FraunhoferInstitute, UK Catapults Centre etc
17
Cell for IPR Promotion and Management
Early successes in the IP ecosystem
458 new technically competentPatent Examiners in various fieldsof technology appointed on regularbasis in addition to the existing 130. 263 Patent Examiners also beingappointed on contractual basis. Patent filings increased by 10%in 2015-16
100 Examiners of Trademarksand GIs appointed on contractualbasis. 62 Examiners of TMs and GIsbeing recruited through UPSC. TM filings increased by 35% in2015-16 – indicator of growth ineconomy.
Patents Trademarks
• Patent applications: First examination from present 5 to 7 years to just 18 months• Trademarks: First examination from present 13 months to just 1 month
