1. Business and Investment Opportunities in India
Presentation By
High Commission of India
Dar es Salaam
20 November 2014

2. "Few nations have the growth
potential that lndia already enjoys. lndia holds the promise of a most successful future..."
Klaus Schwab,
Founder and Executive Chairman, World
Economic Forum, at the lndia Economic
Summit 2009, New Delhi, 8 – 10 November 2009
“….I want to appeal to all the people world over… …Come, Make in India. Sell anywhere but manufacture here….”
-Hon’ble Prime Minister, Shri
Narendra Modi, in his Independence
Day, 15th August 2014 Address.

3. India Fact File
3.29 million sq km New Delhi 1.21 billion (2011) Hindi(official language of the Union) English (business language) Ahmedabad, Amritsar, Bangalore, ChennaiGoa, Guwahati, Hyderabad, Kochi, KolkataMumbai, New Delhi, Thiruvananthapuram Mumbai, New Manqalore, Kolkata. Kandla, Kochi, Chennai, Ennore, Haldia, Mormugao, Paradip, Tuticorin, Vishakapatnam New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Lucknow, Kanpur 5 hours 30 minutes ahead of Greenwich Mean Time (GMT) lndian rupee (lNR)
Land area
Capital
Population
Languages
Major international airports
Major seaports
Major cities
Time zone
Currency unit

4. Trade and Commercial Profile
India’s total merchandise trade was $ 765 billion in EXPORTS $ billion $ billion (Apr-Jun) $ billion IMPORTS $ billion $ billion (Apr-Jun) $ billion

5. Major Export Destinations India’s Top Export Markets for 2013-14
No.
Country
Total Exports
(in $ bn.) 1.
USA
39.14 2.
UAE
30.52 3.
China
14.82 4.
Hong Kong
12.73 5.
Singapore
12.51 6.
Saudi Arabia
12.22 7. UK
9.78 8.
Netherlands
8.00 9.
Germany
7.52
10.
Japan
6.81
India’s Total Exports
$ billion
Source: Dept. of Commerce, New Delhi

6. ` Major Import Sources India’s Top Import Markets in 2013-14
No.
Country
Total Imports (in $ bn) 1.
China
51.03 2.
Saudi Arabia
36.40 3.
UAE
29.10 4.
USA
22.51 5.
Switzerland
19.31 6.
Iraq
18.52 7.
Kuwait
17.15 8.
Qatar
15.71 9.
Indonesia
14.75
10.
Nigeria
14.01
India’s Total Imports
$ billion
Source: Exim Bank

7. India-Tanzania Trade 2013 (Source : TRA)
Tanzanian imports from India - $ million
Tanzanian exports to India $ million
Total bilateral trade - $ million
Tanzania’s bilateral trade with top five partners:
India $
Switzerland - $
China - $
South Africa - $
UAE - $
Total trade between India and Tanzania from 01 April 2013 to
31 Mar 2014 [as per Indian Government figures] - $4125 million

8. India-Tanzania Trade 2014 (January to June) (Source : TRA)
Tanzanian imports from India - $
Tanzanian exports to India - $
Total bilateral trade - $
Main items of export from Tanzania – gold, cashew, pulses, spices (cloves), precious stones, cotton, timber, etc.
Main items of import from India – petroleum products, medicines, machinery, motor vehicles, motor cycles, including three-wheelers (Bajajis), tractors, wires and cables, chemicals, plastics, etc.

9. Indian Investments in Tanzania (Sources: TIC & EPZA)
Investments with Indian interests ;
Cumulative Total from 1990 to 2013 (as per TIC) - US $ 1.96 billion supporting over 52,000 local jobs
Investments with Indian interests in EPZAs
Cumulative Total - US $ supporting over 3600 local jobs
Total Indian Investments in Tanzania US $ 2.46 billion supporting over 55,600 local jobs

10. India’s Major Exports to Africa
Mineral fuels and petroleum products
Vehicles
Pharmaceuticals
Electrical and electronic equipment
Machinery
Iron and steel and Items of iron and steel
Cotton
Plastics and articles

11. India’s Major Imports from Africa
Crude oil and mineral fuels
Pearls and precious stones
Un-wrought and semi-manufactured gold
Inorganic chemicals
Edible fruits and nuts
Iron and steel
Fertilizers
Ores and slag

12. Make in India
PM Modi launches ‘Make in India’ campaign in New Delhi on 25 September 2014
Simultaneous / coordinated launch events organized all over India and in many capitals across the globe including in Dar es Salaam
Basic features – (a) develop robust manufacturing sector in India so that its contribution rises to 25% of GDP from current 15%; (b) Government will create enabling environment for this to happen; and (c) Some measures have already been initiated* and results are showing [See next slide]

13. Make in India – Ease of Doing Business
Six best practices on grant of clearances recommended to States, many which have already adopted
Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online on 24 X 7 basis
Registration with Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) have been automated – registration number given on real time basis
Vide Press Note No. 3 (2014) large number of defence industry parts/components, castings/forgings, dual use items, etc, have been excluded from purview of industrial licensing
Vide Press Note No. 5 (2014) validity period of IL has been increased from two to three years
Security clearance on IL applications will be granted within 12 weeks
Partial commencement of production is being treated as commencement of production of all items included in IL
eBiz Project being developed top create investor centric hub-and-spoke based online single window model for providing clearances and filing compliances

14. Why Make in India?
Manufacturing will not only spur new jobs in India but also increase the size of the market
Attractive to manufacturers to sell in India and abroad
PM’s catch phrases
“zero defect, zero effect” manufacturing practices
“efficient, effective and simple governance”
Manufacturing in India is driven by “democracy, demographic dividend and demand”
“Red carpet for investors, not red tape”
In India, FDI stands for ‘First Develop India’ as also ‘Foreign Direct Investment’

15. Foreign Direct Investment FDI
Most Sectors are open to FDI under automatic route; only a few sensitive sectors are closed for foreign investment
Some Sectors have a cap of between 49% to 74% of FDI – the rest have 100% FDI facility
Some of the sectors with 100% FDI under automatic route are:
Non-banking financial companies (NBFC); Coal and Lignite Mining for captive consumption of power projects, and iron and steel and cement production; power production; software development; electronic hardware, film industry, advertising, hospitals, hotels, food processing, private oil refineries, telecom products, airports (green-field projects); manufacture of drugs and pharmaceuticals, industrial parks; SEZs; etc

16. Sectors Attracting Highest FDI Inflows (2012)
Percentage to Total Inflows
Services sector [Financial & Non-Financial]
19%
Construction Development: Townships, Housing Built-Up Infrastructure
12%
Telecommunications [Radio Paging, Cellular Mobile, Basic Telephone services] 7%
Computer Software & Hardware 6%
Drugs & Pharmaceuticals 5%
Chemicals [other than fertilizers]
Power 4%
Automobile Industry
Metallurgical Industries
Hotel & Tourism 3%
Source: Dept. of Industrial Policy & Promotion, New Delhi

17. India has the potential to offer myriad of opportunities for foreign investors across a wide gamut of manufacturing sectors (1)
Auto
Auto components
Defence
Overview
Likely to become 3rd largest auto market in the world by 2016, accounting for more than 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 ; Exports have risen to USD 9.7 billion in
3rd largest armed forces in the world.
Largest importer of conventional defence equipment
70% of defence requirements are met through imports
Defence budget in 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
Up to 49% under the government route and beyond 49% through CCS (in case of transfer of technology)

18. Opportunities Electrical Equipments ESDM Overview
Pharmaceutical
Overview
Estimated output by 2022 approx. USD 100 billion
The market expanded at a CAGR of per cent over (FY07–12).
Worth USD 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
Investment opportunities
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.

19. Opportunities 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 , growing at 8.4% for the last five years ending
Value addition of sector as share of GDP manufacturing was 9.8% in
Industry size approx. 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.
Investment opportunities
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. Norms for foreign investors in real estate sector have been relaxed since Oct 2014.
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.

20. Opportunities Chemicals Petrochemicals Oil & Gas Textile Overview
Size of the industry ( ) 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 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
Investment opportunities
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

21. Advantage India Why do business with India or invest in India?
◊ Stable and democratic political environment & responsive administrative set up ◊ Well established judiciary to enforce the rule of law ◊ Land of abundant natural resources and varied climatic conditions ◊ Investor friendly policies and incentive based schemes ◊ Cost competitive labour force of nearly 530 million ◊ large pool of skilled manpower with significant English speaking population ◊ Young country with a median age of 30 years by 2025

22. What drives India? ● Talented Workforce ● Hub of Innovation
● World’s IT Nucleus
● Leader in Carbon Credits
● Leading Innovator of technology and processes for developing countries
Combination of macro-economic planning focussed on development, public-private partnership in infrastructure, domestic demand, and a sound and well-administered financial system

23. Advantage India
● Large number of households without basic assets – huge untapped market potential ● Massive reduction of import duties and rationalization of direct and indirect tax structures ● Robust banking and financial institutions ● Full current account convertibility ● Sustained economic reforms since 1991 ● India – Your reliable partner

24. Entry Options in India
Entry for doing business in India, be it trading, manufacturing or in the service industry. How does a foreign entity or national set up a business in India? Details on types of office, repatriation of funds, form of enterprise, economic laws and regulations, visa and entry requirements, taxes, etc, can be found at the website of INVEST INDIA at

25. Sectors to look out for
◊ ELECTRICITY GENERATION – fifth largest generation capacity with third largest transmission and distribution network ◊ STEEL – Production to rise to 100 MPTA by ◊ AVIATION –Poised to emerge as third largest market by 2020; will generate 2.6 million jobs ◊ REAL ESTATE – Worth $ 66.8 billion estimated CAGR of 19% between 2010 and 2014 ◊ RETAIL MARKET – fifth largest globally, expected to grow to $ 804 billion by 2015

26. Sectors to look out for
▪ HEALTHCARE – To become a $ 100 billion industry by 2015 ▪ BIOTECHNOLOGY – With 380 biotech companies ranked among top 12 companies ▪ PHARMACEUTICALS – Unique programme launched to discover drugs for infectious diseases common to all developing countries ▪ TOURISM – 1.6 billion tourists expected by 2020; adding over 100,000 classified hotel rooms by 2013

27. High Commission of India
ASANTENI SANA
DHANYAVAD
THANK YOU
High Commission of India
Dar es Salaam