Download Make in India Presentation PPT Dec 9 2015

Make in India
A Doorway to Business Opportunities
R.Kuppanna, General Manager,
Kuwait India Int’l Exchange Co.
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Improving Fundamentals
India - - world’s fastest growing major economy in 2015(7.3% growth in 2015; IMF)
Third largest economy (PPP) in the world after USA & China
Inflation under control (2Q 2015: CPI 5.1%; WPI -2.4%)
Monetary Policy Easing (Repo reduced thrice in 2015; from 8.0 to 7.8 to 7.5 to 7.3)
Current Account Deficit (CAD) contained (2Q 2015: CAD/GDP 1.2%)
Rise in Foreign Exchange (2Q 2015: US$355b)
Youngest country in the world by 2020 (median age 29)
475 million middle class Indians by 2030
32% of investors ranked India as the most attractive investment destination, while 60% placed
the country among the top three investment destinations (2015 survey by E & Y)
India emerged as the # 1 FDI destination in the world during the first half of 2015 (inflows of
US$30.8b)
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Fundamentals
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Fundamentals
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Exchange Risk – A View
Source:
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
A Game Changer
Flagship program of GOI to make India a global manufacturing hub
Aims to:
Promote the manufacturing of low-cost, eco-friendly and zero-defect products
Foster innovation, enhance skill development & protect intellectual property
Build best-in-class manufacturing infrastructure
Initiatives taken:
A new trade policy (some taxes abolished, incentives for EOUs and EPZs)
New labor laws (single-window compliance, simpler PF/inspection procedures)
Ease of doing business: licenses/environmental approvals online
Improvement in management of natural resources (bauxite, coal, iron ore etc.)
Focus on skill development (Skill India Initiative): 500 million to be trained by 2020
for greater employability in manufacturing sector.
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
E&Y Survey
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
FDI in India: V-shaped Recovery
Two-year decline in FDI inflows reversed in 2014
No. of Projects up 37% ( 496 in 2013; 680 in 2014)
FDI Capital (US $ b) up 32% ( 18.9 in 2013; 25 in 2014)
62% rise in FDI capital into Manufacturing
22% of FDI capital from US-based firms
Jobs created by FDI (thousands) up 39% (104 in 2013; 145 in 2014)
Investor confidence up- - economic growth & investor-friendly moves
In 1H 2015:
338 FDI projects, investments US$30.8 b(235% increase y-o-y), jobs created
up 37% y-o-y; of this, manufacturing activity US$24.8b(221% growth y-o-y)
Top Sources: US, China, UK
Top FDI destinations: Bengaluru, Mumbai, Delhi NCR, Hyderabad, Pune, Chennai
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Surge in Manufacturing
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Investments Made - Examples
KEY COMMITMENTS
Australia
Five agreements in place, including a civil nuclear deal to sell
uranium to India
Bombardier has achieved a high level of localization at both its
Savli and Maneja plants, in line with the Make in India program.
Savli facility to be hub for exports to Australia, Brazil and
Saudi Arabia. US$228m contract for the Delhi Metro, won in June 2015,
Being executed from the Savli facility.
Canada
US$1.4b committed by Canadian and Indian companies
16 commercial agreements signed in defense, energy, mining
and infrastructure
China
Plans to invest over US$20b in India’s infrastructure over
the next five years
JAPAN
US$35b in Indian infrastructure projects
US$4.5b in Delhi Mumbai Industrial Corridor
South Korea
Plans to invest US$10b in India for infrastructure-related projects
UAE
Partnership in major areas such as trade, investment, defense,
security, maritime security and intelligence sharing
Propose to invest US$75b in India
US
Bilateral trade of US$100b expected from bilateral
investment treaty
US$42b over the next two to three years
Source: Government of India website
Cummins currently houses eight plants at the Cummins
Megasite in Phaltan, Maharastra, including a manufacturing
plant for engines opened in 2014. The company is
also setting up its largest ever technical center in Kothrud in
Pune, Maharashtra.
Foxconn intends to establish 10 to 12 facilities in India,
including factories and data centers, by 2020. In August 2015,
it pledged to invest US$5b in Maharashtra to set up an
electronics manufacturing plant and an R&D center, expected
to create 50,000 jobs. Manufacturing agreements with a number of
technology
mega players to invest US$20b in solar projects.
General Motors (GM) announced in July 2015 that it will
invest US$1b in India as part of a move to strengthen its
business in global growth markets, aiming to double its
market share in India by 2020. The new investment is expected
to create approximately 12,000 new jobs
Very recently KIA has invested US$300m in GMR Infrastructure via
a 60-year-long (due 2075) FCCB
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
Reforms Aiding Business Sentiments
Investment, Administrative and Tax-related reforms and a simplification of approval processes
(Fast track clearance of stalled projects; infrastructure projects; plans for 100 Smart Cities, Digital
India; Schemes for Financial Inclusion; Reduction in Corporate Tax, over four years, from 30% to
25%, Favourable tax regime for REITs and AFIs, Deferment of GAARs)
Some Major Reforms:
Construction: 100% FDI under automatic route; exit rules relaxed (3-year lock-in removed)
Defense:
Up to 49% (from 26%) subject to government approval
Lock-in of 3 years for equity transfer removed
Equity greater than 49% for ‘state of the art technology’
Insurance:
Foreign ownership up from 26% to 49%
Railways:
100% ownership under ‘automatic route’ for - >High-speed train projects & dedicated freight lines
> Rolling stocks, locomotives or coaches manufacturing
Customers’ Trust – Kuwait India’s Pre-eminence
Make in India
THANK YOU
Customers’ Trust – Kuwait India’s Pre-eminence