MAKE IN

INDIA

Presented By :
-Kunal Kaushik
(12BEI0044)
Slot : E1
Presented By - Kunal Kaushik

Overview
Make in India campaign was launched by Prime Minister Mr.
Narendra Modi on 25th September 25th 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 - Kunal Kaushik

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

Presented By - Kunal Kaushik

Chart showing scope of different sector under the Make in India campaign
Sector
Automobil
e

IT AND
BPM

Food
processing

Growth Driver

Reason to invest

Passenger Vehicle are to

By 2015 India is expected to
increase at a CAGR of
be fourth largest automotive
16% between 2013-20
market volume in the world
Growing
Indias car market has the
Working
Population and expanding
potential to grow 6+ million
middle class
unit annually 2020
Increasing
Emergence
disposable
of
large
income in rural agriautomobile cluster
An R&D: Strong
sector
support
Favourable government
from the 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
The
2008-13
Revival in
demand for IT
IT-BPM
sector
services from US and
contributes
8.1% of the
Europe
country GDP
Increasing adoption of
Indias
IT
industry
technology and telecom
amounts to 7% of global
by customers
market
High
Rapidly
value
client
growing
urban
additions
bigger
than
infrastructure has fostered
USD 1 million registering
several IT centres
13.5% growth
A rich agricultural resource
Liberalization
and
base
growth of organized retail
A low cost of skilled
Rising income level and
manpower
growing middle class
Attractive fiscal incentives
Favourable economic and
by
state
and
central
cultural
transformation
government in the form of
and shift in attitudes and
subsidies,
Tax Kaushik
rebates etc
Presented
By - Kunal
lifestyle
42 mega
food parts are

FDI policy
100% FDI is allowed in
automatic route

Upto 100% is permitted

under automatic route

100% FDI is permitted in

automatic route for most
product

Sector
Textile and
Garments

Road and
highways

Constructi
on

Growth Driver

Reason to invest

Rising
Second
per
capita
largest
income
,favorable
manufacturing
capacity
demographics and shift in
globally
Accounts for 14% of world
preference for branded
products
production
of textile fibre
Increase
in
domestic
and yarn
Abundant raw materials and
demand is set to boost
cloth production
increasing
demand
for
Favourable policies of
exports
Increased
government of India
penetration
of
Expansion
of
retail
organized retail
sector with many global
players
entering the
market
An outlay of
The
USD 3.8
transport
sector
billion for the highway
constitutes 6% of country
sector has been provided
GDP and 70% share of road
in 2013-14
sector
The GOI aims to develop a
Emergence of private sector
total of 64340 Kms of
as a key player
Establishment
national highways
of major
initiatives by GOI to upgrade
Under various programmes
highways in the country
The rise in four wheeler
and two wheeler vehicle
,Increasing freight traffic,
strong trade will augument
growth
India has
An investment of USD 1000
a housing
shortage of
billion has been projected
65 million
million
for infrastructure sector
Ease access to funding for
dwelling units
Introduction
of
new
the sector
Construction
urban
development
activities
mission which will help
contribute more than 10%
in the development of
of Indias GDP
Presented By - Kunal Kaushik
cities

FDI policy
100% FDI is allowed in
automatic route

100% FDI is allowed

under automatic route

Different levels of FDI

based on
different
parameters

INDUSTRY POTENTIAL
I
Automobile

145

Textile and garment 100

67

Billion

58.5
Industry size

Year

Real estate
market

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

78
USD
billion

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

Presented By - Kunal Kaushik

140

Drivers
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
will shed 85
the world bank,China
at
ist
om
on
ec
ief
ch
ndia
,A former
the fast rising wages.I
of
e
us
ca
According to Justin Lin
be
s
ar
ye
ay new
jobs in the next few
hurdles that scare aw
tic
cra
million manufacturing
au
re
bu
t
cu
n
ca
se jobs if it
can attract some of the
business.

Presented By - Kunal Kaushik

Ease of Doing Business

Doing business in India just got easier-new delicencing and deregulation measures are reducing
complexity, and significantly increasing speed and transparency

Presented By - Kunal Kaushik

Barriers

Presented By - Kunal Kaushik

Increased Investment Activity

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
Presented By - Kunal Kaushik

The Single Window concept:

A key insrument for trade facilitation and
good governance

Presented By - Kunal Kaushik

PROBLEM: .
A foreign trade operation requires
filing appr. 40 documents with often
repeated data =>
Simplification and reduction of
procedures and documents is
necessary

The Single Window (SW) is a

system that allows all participants in
foreign trade to file all required
Presented By - Kunal Kaushik

General model of the Single

Window
Traders and control agencies may be in different physical
locations, but 3-a:
information
flows among them are
'Single Authority'
interconnected
Authority 1

Trader
(incl. Transport)

Electronic

Single
Authority

Authority 2

Authority 3

Paper

Presented By - Kunal Kaushik

Authority 4

Benefits from the

Single Window

Organizational and
political instrument

1. For government agencies instrument of good

governance
.
.
.
.
.

efficient distribution of resources

better collection of duties and fees
more compliance by business
more security (based on better risk analysis)
less corruption

2. For business more efficiency

. lower cost because of saving time for document

preparation
. faster release of goods
. predictable and efficient description and implementation of
Presented By - Kunal Kaushik
rules

The Single Window Concept

FROM

TO

PORT
HEALTH
CUSTO M S

PORT
HEALTH

C A R R IE R
CUSTOMS

W H A R F IN G E R

CARRIER

H A U L IE R

1
0
0

WHARFINGER

HAULIER

Single Window
CUSTO M S
BRO KER

PO RT
A U T H O R IT Y

L IN E
AG ENT

C O N S IG N E E

CUSTOMS
BROKER

PORT
AUTHORITY

LINE
AGENT

CONSIGNEE

CONSIGNOR

C O N S IG N O R

Mountains of paper

Customs, export, import, etc.

processes together

30% mistakes

Many documents filed together

Weeks for clearance

Appr. 1 hour for clearance

Presented By - Kunal Kaushik

Certificates
Customs data
Railway data
Road transport data

Presented By - Kunal Kaushik

IMO/FAL data

B2
G

Flows of trade information

Presented By - Kunal Kaushik

Flows of trade information

B2
G

G2G

Presented By - Kunal Kaushik

Flows of trade information

B2
G

G2G

Presented By - Kunal Kaushik

Flows of trade information

B2
G

G2G

B2B

Presented By - Kunal Kaushik

Checklist of basic legal

issues
Law on electronic signatures

1)
. Is the system working on a PKI basis?
. Is there a root CA + functioning
network of CAs?
2) Law on electronic commerce
3) Law on e-government
4) Law on data protection
5) Do sectoral laws (e.g. sanitary laws)
envisage the use of sector and/or
country specific codes
6) Are there requirements for paper
Presented By - Kunal Kaushik

Foreign Direct Investment

Meaning of FDI
FDI is direct investment into production in a country by a company
located in another country, either by buying a company in the target
country or by expanding operations of an existing business in that
country.

Any country abroad is the net inflow of investment

(capital or other), in order to acquire management
control and profit sharing (10% or more voting stock) or
the whole ownership of an accredited company operating
in the country receiving investment.

FDI offers an exclusive opportunity to enter into the

international or global business, new markets and marketing
channels, elusive access to new technology and expertise,
expansion of company with new or more products or
services, and cheaper production facilities.

Key statics
- India received FDI worth US $1.47 billion in july 2012 with
cumulative inflow for April 2012-13 Stood at $5.9billion.
- The sector which attracted huge FDI inflows during the April 201213 are service $1.65 million pharmaticals $428 million, construction
$421 million, metallurgical industries (US$ 334 million), power
(US$ 237 million) and automobile (US$ 234 million)

- Mauritius infused highest inflows worth US$ 1.97 billion, followed

by Singapore (US$ 886 million), Netherlands (US$ 616 million), the
UK (US$ 421 million), Japan (US$ 417 million) and Germany (US$
276 million)

- Foreign exchange reserves stood at US$ 294.81 billion for the week
ended September 28, 2012 where in the value of gold reserves was
recorded at US$ 28.133 billion

Facts

At least 10% shares of company need to quality as FDI.

Mauritian has been the largest direct investor.
New Delhi And Mumbai are two major cities where
FDI inflows is heavily concentrated.
Retailing is the single largest component of the services
sector in terms of contribution of GDP.