Presentation on theme: "Business and Investment Opportunities in India"— Presentation transcript:
1Business and Investment Opportunities in India PresentationByHigh Commission of IndiaDar es Salaam20 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, WorldEconomic Forum, at the lndia EconomicSummit 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, ShriNarendra Modi, in his IndependenceDay, 15th August 2014 Address.
3India Fact File3.29 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 areaCapitalPopulationLanguagesMajor international airportsMajor seaportsMajor citiesTime zoneCurrency unit
4Trade and Commercial Profile India’s total merchandise trade was $ 765 billion in EXPORTS $ billion $ billion (Apr-Jun) $ billion IMPORTS $ billion $ billion (Apr-Jun) $ billion
5Major Export Destinations India’s Top Export Markets for 2013-14 No.CountryTotal Exports(in $ bn.)1.USA39.142.UAE30.523.China14.824.Hong Kong12.735.Singapore12.516.Saudi Arabia12.227.UK9.788.Netherlands8.009.Germany7.5210.Japan6.81India’s Total Exports$ billionSource: Dept. of Commerce, New Delhi
6` Major Import Sources India’s Top Import Markets in 2013-14 No.CountryTotal Imports (in $ bn)1.China51.032.Saudi Arabia36.403.UAE29.104.USA22.515.Switzerland19.316.Iraq18.527.Kuwait17.158.Qatar15.719.Indonesia14.7510.Nigeria14.01India’s Total Imports$ billionSource: Exim Bank
7India-Tanzania Trade 2013 (Source : TRA) Tanzanian imports from India - $ millionTanzanian exports to India $ millionTotal bilateral trade - $ millionTanzania’s bilateral trade with top five partners:India $Switzerland - $China - $South Africa - $UAE - $Total trade between India and Tanzania from 01 April 2013 to31 Mar 2014 [as per Indian Government figures] - $4125 million
8India-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.
9Indian 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 jobsInvestments with Indian interests in EPZAsCumulative Total - US $ supporting over 3600 local jobsTotal Indian Investments in Tanzania US $ 2.46 billion supporting over 55,600 local jobs
10India’s Major Exports to Africa Mineral fuels and petroleum productsVehiclesPharmaceuticalsElectrical and electronic equipmentMachineryIron and steel and Items of iron and steelCottonPlastics and articles
11India’s Major Imports from Africa Crude oil and mineral fuelsPearls and precious stonesUn-wrought and semi-manufactured goldInorganic chemicalsEdible fruits and nutsIron and steelFertilizersOres and slag
12Make in IndiaPM Modi launches ‘Make in India’ campaign in New Delhi on 25 September 2014Simultaneous / coordinated launch events organized all over India and in many capitals across the globe including in Dar es SalaamBasic 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]
13Make in India – Ease of Doing Business Six best practices on grant of clearances recommended to States, many which have already adoptedProcess of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online on 24 X 7 basisRegistration with Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) have been automated – registration number given on real time basisVide 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 licensingVide Press Note No. 5 (2014) validity period of IL has been increased from two to three yearsSecurity clearance on IL applications will be granted within 12 weeksPartial commencement of production is being treated as commencement of production of all items included in ILeBiz Project being developed top create investor centric hub-and-spoke based online single window model for providing clearances and filing compliances
14Why Make in India?Manufacturing will not only spur new jobs in India but also increase the size of the marketAttractive to manufacturers to sell in India and abroadPM’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’
15Foreign Direct Investment FDI Most Sectors are open to FDI under automatic route; only a few sensitive sectors are closed for foreign investmentSome Sectors have a cap of between 49% to 74% of FDI – the rest have 100% FDI facilitySome 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
16Sectors Attracting Highest FDI Inflows (2012) Percentage to Total InflowsServices sector [Financial & Non-Financial]19%Construction Development: Townships, Housing Built-Up Infrastructure12%Telecommunications [Radio Paging, Cellular Mobile, Basic Telephone services]7%Computer Software & Hardware6%Drugs & Pharmaceuticals5%Chemicals [other than fertilizers]Power4%Automobile IndustryMetallurgical IndustriesHotel & Tourism3%Source: Dept. of Industrial Policy & Promotion, New Delhi
17India has the potential to offer myriad of opportunities for foreign investors across a wide gamut of manufacturing sectors (1)AutoAuto componentsDefenceOverviewLikely to become 3rd largest auto market in the world by 2016, accounting for more than 5% of the global vehicle salesIndia’s is 2nd largest two wheeler manufacturer, largest motor cycle manufacturer and 5th largest commercial vehicle manufacturerExpected size by 2016 is USD 145 billion.Worth USD 39.7 billion in FY2012–13India’s exports of auto components increased at a CAGR of 17% during ; Exports have risen to USD 9.7 billion in3rd largest armed forces in the world.Largest importer of conventional defence equipment70% of defence requirements are met through importsDefence budget in is USD 38 billion, expected to reach USD 50 billion by 2018Investment opportunitiesPassenger VehiclesTwo WheelersThree WheelersCommercial Vehicleslow cost electric vehiclesEngine & Engine PartsTransmission & Steering PartsSuspension & Breaking PartsElectrical partsManufacturing of defence equipmentMaintenance, repair and overhaul segmentEngineering services outsourcingFDI policy100% FDI is allowed under the automatic routeUp to 49% under the government route and beyond 49% through CCS (in case of transfer of technology)
18Opportunities Electrical Equipments ESDM Overview PharmaceuticalOverviewEstimated output by 2022 approx. USD 100 billionThe 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 2015Accounts for about 2.4 % of the global pharma industry in value terms and 10% in volume termsExpected to grow at 12.1% during 2012–20Expected to reach USD250 billion by 2020 from the current USD65 billionInvestment opportunitiesGeneration Machinery: Boilers, Turbines, GeneratorsTransmission MachineryConsumer electronicsStrategic electronicsMedical electronicsAvionicsFabless manufacturingAutomotive electronicsElectronic Manufacturing ServicesEMCsActive pharmaceutical ingredients (APIs)Contract research and manufacturing services (CRAMS)FormulationsFDI policy100% 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 electronics100% FDI is allowed under the automatic route for Greenfield projects.For brownfield project investment up to 100% is under the government route.
19Opportunities 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 sectorWorth 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 endingValue addition of sector as share of GDP manufacturing was 9.8% inIndustry 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 opportunitiesResidential, retail, commercial and hospitality sectorsTechnologies and solutions for sustainable cities, low cost and affordable housing, Green building solutions, environment friendly building materialsTraining and skill development of construction sector workersSmart citiesUrban water supply; urban sewerage & sewage treatmentFruits and VegetablesFermentation productsBeveragesDairyFood additives, nutraceuticalsConfectionary and bakeryMeat & poultryFish and sea foods processingGrain ProcessingFood packagingFood processing equipmentConsumer foodTanning and finishing of leather productsManufacturing of leather garmentsManufacturing of leather footwear and footwear partsManufacturing of leather goods, such as harness and saddlery.FDI Policy100% 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.
20Opportunities Chemicals Petrochemicals Oil & Gas Textile Overview Size of the industry ( ) is around USD 144 billionIndia accounts for approximately 16% of the world production of dyestuff and dye intermediatedThe 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 globallySector contributes 14% to industrial production and 4% to GDP and 13% of country’s export earningsDomestic 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 2014Investment opportunitiesPetrochemicalsSpecialty chemicalsAgrochemicalsColorantsTechnical trainingUnderground coal gassificationE&P services and equipmentsCity gas distributionRefineryTechnology partnerships in upstream sectorEntire value chain of SyntheticsValues added and speciality fabricsTechnical TextilesGarmentRetail BrandsFDI policy100% 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 chain100% FDI is allowed under the automatic route in textile sector
21Advantage 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
22What drives India? ● Talented Workforce ● Hub of Innovation ● World’s IT Nucleus● Leader in Carbon Credits● Leading Innovator of technology and processes for developing countriesCombination of macro-economic planning focussed on development, public-private partnership in infrastructure, domestic demand, and a sound and well-administered financial system
23Advantage 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
24Entry Options in IndiaEntry 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
25Sectors 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
26Sectors 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
27High Commission of India ASANTENI SANADHANYAVADTHANK YOUHigh Commission of IndiaDar es Salaam