2. Why invest in India
Political Stability – Mr. Narendra Modi, the Indian
Prime Minister, has changed Indian Political scenario
thereby bringing stability which is conducive to
development.
FDI invited – The Indian Government is keenly
inviting Foreign Direct Investment (FDI) and
participation in various sectors in Economy.
Policy – Single Window clearance at both Center and
State levels. In some cases an assured 24 hour
clearance.
3. Government is targeting US $ 1 trillion for investments
in infrastructure in 12th five years plan (2012-2017).
Rapidly expanding consumer market – will be one
of world’s largest consumer market by 2025.
According to Global Manufacturing Competitiveness
Index of Deloitte, India to become 2nd most
competitive manufacturing destination by 2018.
65% population in working age group – cost
competitiveness and low labour costs – huge base of
basic English speaking workforce.
4. FDI inflow in renewable energy sector in last 4 years
stood over US $ 2000 million. Government plans to
meet 15% energy requirements through renewable
energy sources by 2020.
Services sector accounts for 50% of GDP and has
grown over 10% annually for past 10 years.
National Innovation Council has set aside over US $
900 million to facilitate talent development in R&D
sector.
5. Sectors for Investment
Automobile – India will be
worlds 4th largest automotive
market by 2015. 6 million+
vehicles to be sold annually by
2020.
Biotechnology – USD 3.7
billion budget from 2012-17.
USD 100 Billion industry by
2025.
Railways – USD 1,000 Billion
worth of projects to be
awarded through PPP
Chemicals – Worlds biggest
producer of dies, agro-
chemicals and perto chemicals.
Civil Aviation – Worlds fastest
growing aviation market. 9th
largest civil aviation market. 3rd
largest aviation market by
2020.
Defense – India has Defence
spend of USD 37.3 Billion and
is big on procurement.
Food processing – 199 Million
cultivated hectares and 42
Mega Food parks in making.127
Agro-climate zones
6. Ports – 73 PPP, 87 new projects
approved, 800 million metric
tonnes in cargo capacity.
Power – 100% FDI through
automatic route. 123 Billion
tonnes of proven coal reserve.
Roads & Highways – USD 3.8
Billion outlay planned for
highways. USD 19 Billion
infrastructure development
between 2012-17
Construction – 100 smart cities
lined up for construction. USD
1 Trillion in investment
projected at the end of 2017.
Gems & Jewelry
Halthcare
Heavy Industry
Education
SEZs
Steel
Telecommunications
Tourism and Hospitality
7. Leather – USD 11 Billion Industry.
10% of World’s leather
production.
ITeS – India is looking at a USD
100 Billion industry by 2022 and a
few switched-on partners.
IT – IT and BPM industry has
saved companies USD 200 Billion
in last 5 years. 600 offshore
development center for 78
countries.
Media & Entertainment – Rs. 220
Billion industry by 2018. 3rd
Largest TV market in the world.
Rs.918 Billion in 2013 revenues.
Mining – 20-30 years mining
lease. Portfolio of 88 minerals.
Oil & Gas – 2nd largest refiner in
Asia. 800 MMT of proven oil
reserve.
Pharmaceuticals – 20% of global
exports in generics. USD 45
Billion in revenue by 2020.
Textiles – 1st in global jute
production. 63% of world’s
market share in textile and
garments.
8. Easy Procedure & Existence
Dealing with permits – Single window clearances
especially for investments above US $ 185 million.
Advance Tax Rulings – To avoid any unpleasant
surprises later.
Enforcing contracts – easier now with priority being
given to litigation/ arbitration involving foreign
companies investing in India as importance of foreign
investment going up steadily
FDI caps across sectors increasing fast – upto 51%
to 100% in key sectors.
9. Corruption and red tape reduced - due to effective
Right to Information Act, 2005 and Government push
to eliminate these evils.
Transparency in business regulation – clear cut
policies especially where foreign investment is
involved.
10. Mode of Entry
Entry Mode
Setting up a Non-
Corporate Entity
Liaison Office
Project Office
Branch Office
Setting up a
Corporate Entity
Wholly owned
Subsidiary
Foreign Institutional
Investors
Joint Venture
11. Strategy at Entry Level
Market Survey Report
Due Diligence
Legal
Financial
Agreements
Joint Venture
Shareholders Agreement
Charter Party Agreements
Rent Agreement
Lease Agreement & Etc.
Continued professional support from Lawyers and CA
12. Investment in North East
Major proposed road projects:
East-West Corridor beginning at Porbandar, Gujarat to the
North-East through a 678 km four-lane highway
connecting Silchar to Srirampur via Lumding-Daboka-
Nagaon-Guwahati in Assam.
Widening 1,051 km stretches of various National
Highways to improve connectivity of capital/ important
towns.
The Arunachal Pradesh package:
Construction of public roads to link the hydel power project
Four-lane connectivity
13. Trans-Arunachal highway
Construction and improvement of 8,737 km of road
length, including:
Two-lane NH connectivity to all state capitals with East-
west corridor
Providing connectivity to all district headquarter of North
East Region by at least a two-lane road and providing inter-
connectivity to all the state capitals by at least a two-lane
NH.
Proposal to connect India and Myanmar through a single
road running on either side of the borders.
14. Major proposed Railways Projects:
Outlay of $166.63 million proposed towards Rail
Development in North-East.
As per Rail Budget 2012-13, railway electrification projects
have been sanctioned for Assam.
New projects will add 882 kms of rail lines.
Brahmaputra river is planned to be brought under rail
connectivity.
Tripura:
Proposed 14 km metre gauge railway line between Agartala
(Tripura) and Akhaura (Bangladesh).
Proposed railway-link to be developed between Agartala
and Sabroom. covering 110 km.
15. Telecom
In September 2014 the Union Cabinet chaired by the Prime
Minister gave its approval for implementing a Comprehensive
Telecom Development Plan for the North-Eastern Region (NER).
The proposal entails an estimated expenditure of Rs. 5,336.18
crore.
Airports
Government of India is planning to set up 'Greenfield' Airports
and opening operation of airstrips in the North-East region, with
the objective of operating up to 50 airports / airstrips in the North
Eastern region and providing up to 600 flights per week within
the region.
The Airport Authority of India is also planning to develop new
'Greenfield' airports at Cheithu in Nagaland, Itanagar in
Arunachal Pradesh and one at Pakyong near Gangtok in Sikkim.
16. Investment in South India
Andhra Pradesh
Two Metro Rail Projects - in Visakhapatnam and VGTM
(Vijayawada-Guntur-Tenali-Mangalagiri) area – State
government has proposed a similar venture for the temple town
of Tirupati.
Rs 500 crore will be given by Central Government towards
development of 2,500 MW solar parks in Andhra Pradesh.
Concept notes for 19 proposed projects (mainly irrigation and
roads) have been prepared on the directions of the state
government and forwarded to the Andhra Pradesh finance
department. After a preliminary approval by the state
government, these will be sent to the Centre for final approval.
17. The major funding external agencies are the World Bank, Asian
Development Bank, Japan International Cooperation Agency,
Department for International Development, United States
Agency for International Development, KFW Development
Bank, and Canada International Development Agency.
Asian Development Bank (ADB) has offered to develop
industrial nodes with complete facilities along the proposed
Visakhapatnam-Chennai industrial corridor projects.
ADB country director Hun Kim, met Chief Minister N
Chandrababu Naidu and discussed the plan involving an
investment of $ 2.5 billion.
ADB said that it will set up industrial zones in the state within
six months.
18. Karnataka
Plans to set up Centers of
Excellence for Technology
Development Project
Plans to develop the
Information Technology
Investment Region (ITIR)
project
Steel plant project at the cost
of about Rs. 9,912 crore
Road improvement project at
the cost of Rs. 700 crore
Proposed smart cities include:
Tumkur
Gulbarga
Bidar
Bijapur
Badami
Pattadakal
Mahakuta
19. Maharashtra
Maharashtra is likely to have infrastructure projects worth Rs.
37,118 crore in Maharashtra across sectors such as Highways,
Ports and Shipping and Special Economic Zones (SEZs).
Government of India has given approval for the Rs. 14,574 crore
Greenfield Airport at Navi Mumbai. CIDCO has commenced the
tender process for the project implementation.
Nagpur Metro Rail Project which is coming up with an
investment of Rs. 8,000 Crore
After the Metro Rail project a 50 KM Mono Rail Project is also
proposed.
Government has an outlay of Rs. 2,836 crore for new Road
Projects and Rs. 164 crore for the repair, renovation and
restoration of water resources in the state
20. Tamil Nadu
The major infrastructure projects lined up for Tamil Nadu
in areas such as industry, highways and ports, include:
Madurai-Tuticorin; Salem-Coimbatore; Chennai-Ranipet
and Ranipet-Hosur industrial corridors projects,
Six/eight lane triangular corridors - Chengalpattu-Tuticorin,
Tuticorin-Coimbatore and Coimbatore-Chengalpattu and
Development of ports in Cuddalore, Nagapattinam and
Manappad regions.
All these projects are to be executed through PPP mode. On
the whole, projects involve a total investment of Rs. 15 lakh
crore in different critical sectors
21. Kerala
Supplementary Gas Infrastructure Project - The total
investment for the project is estimated at Rs.2,000 Crores
($400 million).
Vizhinjam International Deepwater Multipurpose Seaport - The
port development along with the external infrastructure work is
envisaged to be carried out in phases with the cumulative cost
estimated at around Rs. 7000 Crores ($1.4 billion).
Kochi Metro Rail Project - The estimated project cost is Rs.
4500 Crores ($900 million).
Monorail Project in Thiruvananthapuram - The total project
cost is estimated at Rs. 3408 Crores ($682 million).
22. Investment in North India
New Delhi
Investment Opportunities
(i) Industrial Parks
(ii) Metro Projects
(iii) Rapid Transport System
(iv) Roads
23. Uttarakhand
Hydro Power Projects in JV (Rs. 5400 Cr)
Renovation Modernization & Upgradation (Rs. 1367
Cr)
Civil Infrastructure (Rs. 5000 Cr)
Power, Solar Power
Lake and Water Front Developments (Rs. 5000 Cr)
Cable Car/ Ropeway (Rs. 1000 Cr)
24. Punjab
Agro and Food Processing (Food Parks)
Information Technology (Rs. 349 Cr)
Urban Development (Rs. 10,000 Cr)
Bio Sciences and Healthcare
25. Haryana
Delhi – Mumbai Industrial Corridor (US$ 90 billion)
Haryana – Manesar Bawal Investment Region (US $ 42
Billion)
Global City at Gurgaon
Multi- Model Logistics (Rs. 5000 Cr)
Mass Rapid Transit between Gurgaon and Manesar
(Rs. 18,000 Cr)
Power Projects and Power Infrastructure
Transport Infrastructure
26. Uttar Pradesh
Solar Power (Rs. 150 Cr)
Leather Park (Rs. 200 Cr)
Plastic City, Auraiya (Rs. 4000 Cr)
Trans- Ganga Project- Kanpur-Unnao (Rs. 1300 Cr)
Mega Leather Cluster (MLC) project (Rs. 1000 Cr/ park)
Hi-Tech Industrial township (DMIC) Project (Rs. 2600 Cr)
Eastern Dedicated Freight Corridors Project (Rs. 42000 Cr)
Moradabad Special Economic Zone (Rs. 2200 Cr)
