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Manufacturing: The India Value Proposition  October 2006
Contents Market Overview Government regulations & policy Business Opportunities and  Advantage India
Manufacturing has contributed to India’s economic growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: GoI website, IMaCS analysis
Indian Manufacturing : A macro perspective  Indian economy  expected to  grow at 8% to  10% over the  next decade The quality of Indian work force is one of India’s key competitive advantages Indian manufacturing sector is expected to grow at 12% to  14 % over the next decade Indian manufacturing competitively positioned for a high growth rate era  India is a stable democracy with strong macro-economic fundamentals  The BPO migration to India is getting replicated in the manufacturing sector   FDI inflow into India has doubled from USD 3.4 bn in 2001 to USD 8 bn in 2005  India is ranked  43 in the latest  GCI index (1)  ahead of other  BRIC (2)  economies  (1) Global Competitiveness Index  (2) Brazil, Russia, India, China Source: National Manufacturing Competitiveness Council, IMaCS analysis
Key sectors in Indian manufacturing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],These sunrise sectors (1)  of Indian manufacturing is enabling higher growth rates for the manufacturing  sector (1) - list illustrative and not exhaustive Source: IMaCS analysis
[object Object],Export Competitiveness India's manufacturing output is USD 450 bn Domestic and Export competitiveness in  manufacturing : Key drivers  India’s liberalization, key policy interventions, competition  and infrastructure build up have been key drivers India’s manpower advantage, indigenous technology advantage have played a leading role in achieving domestic competitiveness  Many Indian sectors (e.g. Textiles, Glass, Automotive, Jewellery, Leather, Agro based, Pharmaceuticals, etc) have achieved export competitiveness  Regional FTA’s, FDI in select sectors,  stable currency, stable economic regime have been key drivers This interplay has enhanced India’s competitiveness Indian manufacturing exports have been growing at a CAGR of 14% for the last five years Source: IMaCS analysis
A handful of sectors contribute to 75% of  India’s manufacturing exports  Leather Jewellery Textiles Chemicals 75% of mfg exports   Engg Goods Gems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: National Manufacturing Competitiveness Council India is presently at the cusp of a  “ Manufacturing take-off”
Where does the advantage arise from..... ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: IMaCS analysis A sustainable competitive advantage for India in Manufacturing
Contents Market Overview Government regulations & policy Business Opportunities and Advantage India
Regulatory Scenario for Indian manufacturers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Regulatory advantage Better project economics Central (Federal) Government   State (Provincial) Government Source: GoI website, IMaCS analysis
Foreign Investment Policy relating to  the manufacturing sector ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],(2) Except refining  Source: FDI  policy 2006, GoI (1) FIPB: Foreign Investment Promotion Board   FDI inflow into India has doubled  in the last five years
Infrastructure improvements are expected to  facilitate manufacturing Investment in infrastructure is estimated to reach USD 125 bn between 2005 - 2010   Roads  ,[object Object],[object Object],[object Object],Ports  ,[object Object],[object Object],Airports  ,[object Object],[object Object],[object Object],[object Object],Emphasis on infrastructure development would support Indian manufacturing to be competitive Source: IMaCS analysis
Contents Market Overview Government regulations & policy Business Opportunities and Advantage India
Attractiveness of India as a manufacturing destination ,[object Object],[object Object],[object Object],[object Object],[object Object],Investor’s expectations manufacturing locations India’s manufacturing competitiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],India has compelling advantages
India is transforming from an “attractive labour pool”  to a “preferred manufacturing destination” ,[object Object],[object Object],[object Object],Source: IMaCS analysis Over the next few decades India can overtake the economic growth rate of Brazil, Russia, China (the other fast growing economies) @ @ BRIC report by Goldman Sachs
A conglomerate of  96 operating companies in several sectors with revenues of USD  22 bn (2.8% of India GDP) in 2006. The Tata brand is a household name in India One of India’s largest private sector enterprise, with interests in downstream petrochemicals. Group revenues are about USD 20 bn. Reliance Industries Limited is a Fortune 500 company Pepsi is one of  the biggest FMCG brands in the country. The company plans to invest around USD 500 Mn in India this year Ford is one of India’s popular brands in the car market. Ford manufactures around 100,000 cars per annum in India  Key players in India Illustrative, not exhaustive
Coca Cola is one of the largest beverage player in the country. The company has invested more than USD 1 bn since its entry into India  Wockhardt is one of India’s leading companies with interests in pharmaceuticals and healthcare with a  market capitalization of USD 1.3 bn and an annual turnover of over USD 300 mn  A US$ 8.3 bn conglomerate, with a market capitalisation of US$ 12 bn, it is anchored by 82,000 employees belonging to over 20 different nationalities  Present in India for over 50 years. Leading player in the power sector. Employs over 4,000 people in India; has its global R&D centre in Bangalore Key players in India Illustrative, not exhaustive
The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry. The Foundation’s primary objective is to build positive economic perceptions of India globally India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IV Gurgaon 122015, Haryana, INDIA Tel +91 124 401 4087, 4060 - 67 Fax +91 124 401 3873 Email ajay.khanna@ciionline.org Web www.ibef.org
Disclaimer ,[object Object],[object Object],[object Object],[object Object],[object Object],ICRA Management Consulting Services Limited

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Manufacturing.Ppt

  • 1. Manufacturing: The India Value Proposition October 2006
  • 2. Contents Market Overview Government regulations & policy Business Opportunities and Advantage India
  • 3.
  • 4. Indian Manufacturing : A macro perspective Indian economy expected to grow at 8% to 10% over the next decade The quality of Indian work force is one of India’s key competitive advantages Indian manufacturing sector is expected to grow at 12% to 14 % over the next decade Indian manufacturing competitively positioned for a high growth rate era  India is a stable democracy with strong macro-economic fundamentals  The BPO migration to India is getting replicated in the manufacturing sector  FDI inflow into India has doubled from USD 3.4 bn in 2001 to USD 8 bn in 2005 India is ranked 43 in the latest GCI index (1) ahead of other BRIC (2) economies (1) Global Competitiveness Index (2) Brazil, Russia, India, China Source: National Manufacturing Competitiveness Council, IMaCS analysis
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Contents Market Overview Government regulations & policy Business Opportunities and Advantage India
  • 10.
  • 11.
  • 12.
  • 13. Contents Market Overview Government regulations & policy Business Opportunities and Advantage India
  • 14.
  • 15.
  • 16. A conglomerate of 96 operating companies in several sectors with revenues of USD 22 bn (2.8% of India GDP) in 2006. The Tata brand is a household name in India One of India’s largest private sector enterprise, with interests in downstream petrochemicals. Group revenues are about USD 20 bn. Reliance Industries Limited is a Fortune 500 company Pepsi is one of the biggest FMCG brands in the country. The company plans to invest around USD 500 Mn in India this year Ford is one of India’s popular brands in the car market. Ford manufactures around 100,000 cars per annum in India Key players in India Illustrative, not exhaustive
  • 17. Coca Cola is one of the largest beverage player in the country. The company has invested more than USD 1 bn since its entry into India Wockhardt is one of India’s leading companies with interests in pharmaceuticals and healthcare with a market capitalization of USD 1.3 bn and an annual turnover of over USD 300 mn A US$ 8.3 bn conglomerate, with a market capitalisation of US$ 12 bn, it is anchored by 82,000 employees belonging to over 20 different nationalities Present in India for over 50 years. Leading player in the power sector. Employs over 4,000 people in India; has its global R&D centre in Bangalore Key players in India Illustrative, not exhaustive
  • 18. The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry. The Foundation’s primary objective is to build positive economic perceptions of India globally India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IV Gurgaon 122015, Haryana, INDIA Tel +91 124 401 4087, 4060 - 67 Fax +91 124 401 3873 Email ajay.khanna@ciionline.org Web www.ibef.org
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