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MAKE IN INDIA
Overview

Make in India campaign was launched by Prime Minister Mr. Narendra
Modi on 25
th
September 25
th
2014
It is a national program designed to transform India into global
manufacturing hub
The initiative is meant to cut red tape, spur foreign investment and
transform India into a vibrant economy
Twenty five sectors have been identified as priority areas including
Automobile, construction, Food processing, IT, Defence, Aviation and
many more
Introduction of 24/7 e-portal to address the industry concern and get back
to them 48-72 hours
It includes major new initiatives designed to facilitate investment, foster
innovation, protect intellectual property and built best in class
Manufacturing Infrastructure









Presented By - Midson Advisors (P) Ltd.
Presented By - Midson Advisors (P) Ltd.

Sectors
Automobiles
Biotechnology
Defence Manufacturing
Food Processing
Media and Entertainement
Pharmaceuticals
Renewable Energy
Railways
Oil and Gas
Leather
Aviation

Textile and garments
Wellness
Ports
Mining
IT and BPM
Ports
Roads and Highways
Thermal power
Space
Construction
Electronic System


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Sector Growth Driver Reason to invest FDI policy
Automobile Passenger Vehicle are to increase
at a CAGR of 16% between 2013-
20
Growing Working Population and
expanding middle class
Increasing disposable income in
rural agri-sector
Favourable government policies
like lower excise duties,
automotive mission plan
Easy finance schemes owing to
which the auto finance industry
has grown at the rate of 13%
between 2008-13
By 2015 India is expected to be fourth
largest automotive market volume in
the world
Indias car market has the potential to
grow 6+ million unit annually 2020
Emergence of large automobile
cluster
An R&D: Strong support from the
government


100% FDI is allowed in automatic
route
IT AND BPM
Revival in demand for IT services
from US and Europe
Increasing adoption of technology
and telecom by customers
High value client additions bigger
than USD 1 million registering
13.5% growth
The IT-BPM sector contributes 8.1%
of the country GDP
Indias IT industry amounts to 7% of
global market
Rapidly growing urban infrastructure
has fostered several IT centres

Upto 100% is permitted under
automatic route
Food processing
Liberalization and growth of
organized retail
Rising income level and growing
middle class
Favourable economic and cultural
transformation and shift in
attitudes and lifestyle
A rich agricultural resource base
A low cost of skilled manpower
Attractive fiscal incentives by state
and central government in the form of
subsidies, Tax rebates etc
42 mega food parts are setup in PPP
at an investment of 98 billion rupees
100% FDI is permitted in automatic
route for most product
Chart showing scope of different sector under the Make in India campaign
Presented By - Midson Advisors (P) Ltd.


Sector Growth Driver Reason to invest FDI policy
Textile and Garments Rising per capita income
,favorable demographics and shift
in preference for branded products
Increase in domestic demand is
set to boost cloth production
Favourable policies of
government of India
Expansion of retail sector with
many global players entering the
market
Road and highways
Second largest manufacturing capacity
globally
Accounts for 14% of world production
of textile fibre and yarn
Abundant raw materials and increasing
demand for exports
Increased penetration of organized
retail
100% FDI is allowed in automatic
route
An outlay of USD 3.8 billion for the
highway sector has been provided
in 2013-14
The GOI aims to develop a total of
64340 Kms of national highways
Under various programmes
The rise in four wheeler and two
wheeler vehicle ,Increasing freight
traffic, strong trade will augument
growth


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

100% FDI is allowed under
automatic route
Construction
India has a housing shortage of
65 million million dwelling units
Introduction of new urban
development mission which will
help in the development of cities



Different levels of FDI based on
different parameters
An investment of USD 1000 billion
has been projected for infrastructure
sector
Ease access to funding for the sector
Construction activities contribute
more than 10% of Indias GDP

INDUSTRY POTENTIAL
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I













58.5
145
0
20
40
60
80
100
120
140
160
2011 2016
year
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 in 2010-11 was USD58.5
billion ,turnover by 2016 is slated to be USD 145 billion

The domestic textile and apparel industry in India is estimated to
reach USD 100 billion by 2016-17 from USD 67 billion in 2013-14

As per the industry estimate ,the Indian Real estate market is
estimated to be USD 78billion in 2013 and is expected to grow to
USD 140 billion


Drivers
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Development of industrial cluster and new smart cities will foster Indias manufacturing infrastructure and
innovation capacity

Indias high value industrial sectors-Defence ,Construction and railways are now open to global participation
Policy in Defence sector liberalised and FDI cap raised from 26% to 49%
100% FDI under automatic route permitted in construction ,operations and maintenance in specified rail
infrastructure projects
Opportunity for domestic companies having leadership in innovation and technology to turn themselves into
a global champions
Increasing Venture capital and private equity activities will further provide the impetus to the domestic
companies
Implementation of major reforms could push Indias Gross Domestic Product to over $4.5 trillion by FY20
Smes contribute 90% of all industrial units and 40% export within the manufacturing sector

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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
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The manufacturing sector has performed poorly by recording a expansion of
barely 1.1% growth in 2012-13 followed by a contraction of 0.7% in 2013-14
Boost to Manufacturing sector
From 2010 to 2012,the countrys stock of FDI just totalled 12% of GDP while
the developing country average was 30%
Need to increase FDI
The growth has continued to slow down and has been running below 5% for
the last 2 years .For a massive increase in the growth rate by 4% to GDP,$ 200
billion 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 Indias GDP is only 15%.It compares
poorly to other Asian nations

India ranks 134
th
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

Increased Investment Activity
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Increase in the FDI limits in various sectors will encourage foreign investment by various types of investors like Pension
Funds, Foreign trusts, Private equity firms and partnership firms.However there are certain sectors where limit is fixed
by the government of India
Increased incentive provided by Government
includes:
Investment allowance at the rate of 15% to
manufacturing that invest more than INR 1 billion in
plant and machinery

Incentives available to unit setup in SEZ ,NIMZ and
EOU

Exports incentive like duty drawback, Duty
exemption, focus product and market schemes

Area based incentive like unit setup in north east
region, Jammu and kashmir

Sector specific incentives like M SIPS in electronics





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For Further Information about Financial
assistance provided by government.
Visit website of MAKEININDIA
(http://www.makeinindia.gov.in/