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India as an Investment Destination & Recent Initiatives by the Government of India

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Presented by Ms. Sai Sudha Assistant Vice-President, Invest India-Government of India

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India as an Investment Destination & Recent Initiatives by the Government of India

  1. 1. 5 June 2020 World’s Most Awarded Investment Promotion Agency 5 June 2020 | 12:30 – 2 pm IST Opportunities in For Japanese Investors
  2. 2. 2 MUMBAI AIRPORT, 2013
  3. 3. 3 MUMBAI AIRPORT, 2018
  4. 4. 4 Meerut Highway, 2014MEERUT HIGHWAY, 2014
  5. 5. 5 Meerut Highway, 2018MEERUT HIGHWAY, 2018
  6. 6. $5 Trillion Opportunity by 2025 Auto $300 B Auto Comp $200 B Aviation $25 B Biotech $100 B Mining $150 B Oil & Gas $110 B Pharma $65 B Chemicals $304 B Construction $640 B Defence $130 B Capital Goods $112 B Railways $192 B Renewables $180 B Roads $285 B Electronics $400 B Food Processing $535 B IT/BPM $350 B Leather $30 B Textiles $223 B Thermal Power $125 B Tourism & Hospitality $424 B Media & Entertainment $100 B Wellness $9 B Ports $123 B
  7. 7. India: Unprecedented Opportunity Source: IMF, RBI, UNCTAD, CMIE 5th largest economy in the world • Behind USA, China, Japan and Germany India to become 3rd largest market by 2030 • After US & China Fastest growing G20 economy (even post COVID19) • Average GDP growth: 7.5% (2014-18) FDI inflows: 40% faster in last 5 years • $73 billion in 2019-20 2nd largest recipient of FDI in Asia • Top 10 FDI recipient globally Recent FDI investors 7
  8. 8. 8 THE OPPORTUNITY 2025 LAND TRANSPORT 10,000 Km New High Speed Rail 800 Km New Express Highways 600+ World Class Rail Stations 40Km Roads / Day URBAN INFRASTRUCTURE Renewable Energy 225 GW Smart Cities 100+ New Logistics Parks 35 Industrial Corridors 5 AIR & WATER TRANSPORT 400 Airports 111 Inland Waterways 20 New Dry Ports
  9. 9. ROADS & HIGHWAYS RAILWAYS AIRPORTS ENERGY PORTS LOGISTICS World Class Infrastructure 66,000 Km of Highways; 41 km/day 400 airports; 100 new airports 450 GW of RE by 2030 600+ railway stations; 10,000 km high speed 5 freight corridors; 35 new parks 173 shipping projects worth $60B by 2020 National Infrastructure Pipeline: $1.4 Tn by 2025​
  10. 10. EASE OF DOING BUSINESS  79 places Ease of Doing Business Ranking #63 (2020)  10 Places Logistics Performance Index #44 (2018)  29 Places Global Innovation Index #52 (2019) Make in India (launched Sept’14) 132 134 142 130 130 100 77 63 2012 2013 2014 2015 2016 2017 2018 2019 WORLD BANK’S DOING BUSINESS RANKING
  11. 11. 11 2 3 4 5 6 71 W.I.P R&D DEEPENING OF INDIA’S VALUE CHAIN Design Fabrication Component Manuf. Assembly Config & Testing Packaging, Distribution, Repair Sales & Marketing Level of Maturity
  12. 12. INDIA : #1 R&D DESTINATION 1140 R&D Centres of MNCs in India || 900,000 Professionals Samsung R&D Institute, Bangalore:Largest R&D centre outside of South Korea. Intel India Design Centre, Bangalore: Largest R&D centre outside of USA. Apple, Amazon, Google & Uber: Plan to have 2nd largest development centres, outside the USA in Hyderabad
  13. 13. PARAMETERS / RANKS INDIA CHINA INDONESIA VIETNAM MALAYSIA PHILIPPINES THAILAND Political stability 1 2 4 4 3 7 6 Currency stability 1 4 3 7 2 6 5 High quality products 1 4 2 7 3 6 5 Anti-corruption 1 3 4 7 2 6 5 Low cost of production 1 5 3 2 4 7 6 Strategic location 1 5 3 6 1 4 7 Respect for IPR 1 7 3 6 2 4 5 Diversified export markets 1 5 2 7 3 6 4 Tax privileges 2 5 3 4 1 7 6 Quality of living for investors 4 5 3 7 1 6 2 INDIA: THE INVESTMENT DESTINATION Source: Bloomberg Media Group – Nation Brand Tracker 2018
  14. 14. Global parents’ revenues 6.9% Indian subsidiaries’ revenues 12.6% Global parents’ net profits 4.4% Indian subsidiaries net profits 30.6% Average IRR of All-Asia based funds: 11.9% Average IRR of India-focused funds: 14.4% 25.6 15.2 19.2 7.3 Suzuki Standard Life Insurance MARKET CAPITALIZATION ($ B) Indian Subsidiary Global Parent INDIAN SUBSIDIARIES OUTPERFORM GLOBAL PARENTS Source: Economic Times, Business Standard Source: YahooFinance. As on 29th Aug’ 19 2012 - 2017
  15. 15. RECENT POLICY CHANGES AND GOVERNMENT INITIATIVES
  16. 16. Section 65- Customs Act MANUFACTURING IN BONDED WAREHOUSING
  17. 17. Improved Corporate Profitability Faster Breakeven for New Investments Increased Competitiveness — Make in India or Served from India Source: Deloitte Tax Rates 2019; KPMG Tax Monitor; Invest India analysis EFFECTIVE CORPORATE TAX RATES (%) BEFORE AFTER INDIA IS TAX COMPETITIVE GLOBAL FDI DESTINATION 34.0%33.3% 31.0%30.0%30.0% 25.17%25.0%25.0%25.0%25.0%24.0% 21.0%20.0%20.0% 17.16%17.0%
  18. 18. Production Linked Incentive Scheme (PLI) Scheme for Promotion of Manufacturing of Components and Semiconductors (SPECS) Domestic Electronics Supply Chain of Components Electronics Manufacturing Cluster Scheme (EMC 2.0) 18 Infrastructure and Common Facilities Large Scale Mobile Manufacturing ELECTRONICS SECTOR
  19. 19. 12% CONTRIBUTION Export earnings 13% Manufacturing production 2.3% GDP 19 Employed Labor, 2nd Largest Employer after Agriculture ENABLING ECOSYSTEM Technology Upgradation Funds Scheme Source: Ministry of Textiles website Operational Textile Parks 45mn $250mn $136.6 bn Market size (2018-19) *Exports: $36.6bn 100% FDI allowed FDI (’18- ’19): $198.14 mn Special Package for Textiles TEXTILES 5% Global Trade Total trade including Handicrafts: US$ 40.4 bn * Excluding Handicrafts = US$ 3.8 mn • Grant/Equity up to 40% of textile park development project cost subject to a ceiling of Rs 400 million • Grant at 90% of the project cost subject to a ceiling of Rs 400 million for first two projects in the states of North East Region of India Scheme for Integrated Textile Parks (SITP) • Capital subsidies provided to textile sector investors for technology upgradation and expansion • The scheme came into effect from 2016 for a period of 7 years Amended Restructured Technological Upgradation Fund Scheme (ATUFS) • Aims to assist SMEs comply with requisite environmental norms • Grant up to 50% of the project cost with a ceiling of Rs.750 million for projects with Zero Liquid Discharge Systems and Rs.100 million for others Integrated Processing Development Scheme (IPDS) Some Schemes and Initiatives
  20. 20. FOOD PROCESSING 20 India Ranks 291 approved cold chain projects* Ready Infrastructure * Under MoFPI assistance 18 operational Mega Food Parks* Milk Production Livestock Population Millets Production 1st Fish, Rice, Wheat, Cereals Fruits & Vegetables Total Food Production2nd 127 Agro Climatic Zones 37 Mega Food Parks 200.9 Mn Ha Gross Cropped Area USD 35.3 Bn Exports 8,038 cold storage facilities Khargaon & Dewas, Madhya Pradesh Fazlika, Punjab Kashipur & Haridwar, Uttarakhand Nalbari, Assam Jangipur, West Bengal Chittoor & West Godavari, Andhra Pradesh Tumkur, Karnataka Operational Mega Food Parks Rayagada, Odisha Aurangabad & Satara, Maharashtra Ajmer, Rajasthan Una, Himachal Pradesh West Tripura, Tripura Surat, Gujarat Nizamabad, Telangana
  21. 21. JAPANESE COMPANIES IN INDIA 500+ Japanese Co. 100-500 Japanese Co. Proposed JIT Operational JIT 1,441 Japanese Companies in India 9,000+ Japanese Nationals in India 30,000+ Indian Nationals in Japan Largest investor in India $32 Bn 3rd FDI into India $17 Bn Bilateral trade Rajasthan - 2 NEEMRANA INDUSTRIAL PARK (JETRO) GHILOTH INDUSTRIAL PARK (JETRO) Gujarat-1 MANDAL (JETRO) INDUSTRIAL PARK Madhya Pradesh -1 PITAMPUR INDUSTRIAL PARK Haryana-1 JHAJJAR INDUSTRIAL PARK Uttar Pradesh-1 GREATER NOIDA Maharashtra-1 SUPA PARNER (JETRO) INDUSTRIAL PARK Karnataka -1 TUMKUR INDUSTRIAL PARK Tamil Nadu -3 SOJITZ MOTHERSON ONE HUB CHENNAI Mahindra Origins, PONNERI Andhra Pradesh-1 SRI CITY Invest India Facilitation: $ 1.8B
  22. 22. Tamil Nadu Gujarat Andhra Pradesh Rajasthan Punjab Maharashtra Karnataka Delhi NCR Indicative Plug & Play Players: Locations
  23. 23. 23 Delhi Pune Bengaluru Chennai KolkataKolkata Surat Aurangabad Vizag. Kanpur Coimbatore Jalandhar Decoding India’s Social Infrastructure • City Profile • International events • Shopping malls & Leisure spots • Cuisines Restaurants * Pubs * Markets • International schools & Activities • Weekend Getaways * Hotels • Hospitals & Healthcare facilities • World Class amenities Places covered 9 States 11 Cities • Key Metros • Tier 1 • Tier 2
  24. 24. Tier 1 27% Tier 2 37% Tier 3 36% 153K BUSINESS QUERIES Nashik, Vadodara, Amravati etc. Jaipur, Bhopal, Patna etc. INDIA: 2nd LARGEST STARTUP ECOSYSTEM 70,000+ STARTUPS IN INDIA (1 STARTUP FOUNDED PER DAY) Delhi Jaipur Ahmedabad Indore Startup Hubs Mumbai Pune Bengaluru Kochi Coimbatore Chennai Bhubaneswar Hyderabad Upcoming Hubs Major Hubs
  25. 25. www.INDIAINVESTMENTGRID.com SHOWCASING BEST INVESTMENT OPPORTUNITIES As on July 30th, 2019 150 1 171 149 273 172 57 93 62 94 321 324 329 38 - 55 119 179 210 88 315 74 120 9 55 436 38 21 26 Search Preferred Investment Opportunities Connect With Indian Promoters & Global Investors Project Distribution by State 4,300+ Projects $180Bn+ Opportunity 6800+ Registered Users 5200+ Investors 135 Countries 350,000+ Website Hits 180 Countries 0 250 500 Project Count
  26. 26. Dedicated team for Japanese investors SUPPORT DURING COVID-19 ❑ Queries Received: 9586 ❑ Queries resolved : 94% ❑ Resolution Time : 6 hrs 1x1 Contact with 148 Japanese Companies in India Others 26% Logistics Support 22% Plant Shutdowns 20% Clarifications 16% Supply of Essential Goods & Services 8% Notifications 5% Customs Issues 3% Success Stories: Olympus, Nipro Medical, TDK (Navitasys), ASB & Yakult Danone *As on June 1st, 2020
  27. 27. Invest India – One Stop Shop for Investors GOVERNMENT Centre / States Foreign Missions / Agencies INDUSTRY Associations / Corporates Professional Advisors / Academia Investor Aftercare Strategy & Implementation Business Advisory Awareness & Engagement Long term partnership 1 1 11 2,32,299 Business Requests 159 Nations37 States & UTs 40 Sectors $136 B 2016 2016, 2017, 2018, 2019 2016, 2018 THANK YOU - CONTACT US : japan@investindia.org.in

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