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“….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.

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Presentation on theme: "“….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."— Presentation transcript:

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2 “….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, 15 th August 2014 Address. "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

3 Land area Capital Population Languages Major international airports Major seaports Major cities Time zone Currency unit 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)

4 India’s total merchandise trade was $ 765 billion in EXPORTS $ billion $ billion (Apr-Jun)$ billion IMPORTS $ billion $ billion (Apr-Jun)$ billion

5 No.CountryTotal Exports (in $ bn.) 1.USA UAE China Hong Kong Singapore Saudi Arabia UK Netherlands Germany Japan 6.81 India’s Total Exports$ billion Source: Dept. of Commerce, New Delhi

6 No.CountryTotal Imports (in $ bn) 1.China Saudi Arabia UAE USA Switzerland Iraq Kuwait Qatar Indonesia Nigeria14.01 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) SectorPercentage 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 & Hardware6% Drugs & Pharmaceuticals5% Chemicals [other than fertilizers]5% Power4% Automobile Industry4% Metallurgical Industries4% Hotel & Tourism3% 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) AutoAuto componentsDefence Overview  Likely to become 3 rd largest auto market in the world by 2016, accounting for more than 5% of the global vehicle sales  India’s is 2 nd largest two wheeler manufacturer, largest motor cycle manufacturer and 5 th 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  3 rd 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 policy100% 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 EquipmentsESDM Pharmaceutical Overview  Estimated output by 2022 approx. USD 100 billion  The market expanded at a CAGR of 10.5 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 ConstructionFood ProcessingLeather Overview  Second largest employer and contributor to economic activity, after agriculture sector.  Accounts for 2 nd 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 % 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 PetrochemicalsOil & GasTextile 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.  4 th 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. 2 nd 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 Exports are expected to increase to USD 65 bn by 2017 from USD 40 bn in 2014 Investment opportunitie s  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 ◊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 ● 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 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? INVEST 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 ASANTENI SANA DHANYAVAD THANK YOU High Commission of India Dar es Salaam


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