Launch of “Make in India” Campaign by the Government of India September 25, 2014

1. Launch of “Make in India” Campaign by
the Government of India
September 25, 2014

3. Make in India
Launch of the Make in India campaign
• The “MakeinIndia”s logan was first used in PM Narendra Modi’s
Independence Day speech on Aug15th. The vision was to transform
Indian to a global manufacturing hub and spark a new industrial
revolution. The official campaign was launched today with ministers,
high ranking bureaucrats, business leaders and international
dignitaries in attendance.

4. • Nearly 3,000 companies from 30 countries
participated in the event. Minister of State for
Finance , Commerce &Industry Nirmala Sitharaman,
Power Minister Piyush Goyal, MSME Minister Kalraj
Mishra, Labour Minister Narendra Singh Tomar, and
Textile Minister Santosh Singh Gangwar, among
others, were present at the gathering .Some of the
most influential business leaders gave wind to the
PM’s vision. The high point of the event was the
launch of the “Make in India” logo, website and
brochure.

5. INDIA
• India is one of the world's fastest-growing
economies.
• The tenth-largest in the world by nominal
GDP and the third-largest by purchasing power
parity (PPP).

6. Where Are We?
India has been recording sustained trade deficits since
1980 mainly due to the high growth of imports,
particularly of crude oil, gold and silver.

7. IMPORTS
India is heavily dependent on crude oil imports, with
petroleum crude accounting for about 34 percent of the total
imports.
The country also imports: gold and silver (12 percent of the
total imports), machinery (10 percent), electronic goods (7
percent) and pearls, precious and semi-precious stones (5
percent).
India’s main import partners are China (10.7 percent of the
total shipments), United Arab Emirates (8 percent), Saudi
Arabia (7 percent), Switzerland (7 percent) and the United
States (5 percent).

8. IMPORTS & EXPORTS
A. EXPORTS (Receipts)
Exports during October, 2014 were valued at US $ 12146 Million (Rs. 74505.99 Crore).
B. IMPORTS (Payments)
Imports during October, 2014 were valued at US $ 5942 Million (Rs. 36449.42 Crore).
C. TRADE BALANCE
The trade balance in Services (i.e. net exports of Services) for October, 2014 was
estimated at US $6204 Million.

9. Zero defect,
zero effect
"Our manufacturing should have zero defect so that our products should
not be rejected in the global market. Besides, we should also keep in
mind that manufacturing should not have any negative impact on our
environment."

10. Major objective
The major objective behind this initiative is to focus
upon the heavy industries and public enterprises
while generating employment in India.
To facilitate
Investment
Foster innovation
Enhance skills development
Protect intellectual property
To built best-in-class manufacturing
infrastructure

12. 5 things ‘Make In India’ will do
#1 Guide Foreign Investors
#2 Assistance to Foreign Investors
#3 Prompt Response
#4 Provide Relevant Information
#5 Proactive Approach

13. Food Processing

14. Food Processing
Growth Driver
•Population -1.2 billion people. Youth population –572 Million ~ 48% (under the age of
24)
•Rising income levels, increasing spending power and growing middle class
•Increasing desire for branded food
•Consumption in India is driven towards packaged and ready-to-eat foods
•One-third of the population will be living in urban areas by 2020.
•Favorable economic and cultural transformation
•Shift in attitudes and change in lifestyles
•Awareness and concern for wellness and health.
•Higher demand from Middle East and Southeast Asia for Processed food exports
•Abundant raw materials, supply and cost advantages for food industry

15. Statistics
•India’s food processing sector ranks fifth in the world in exports, production and
consumption
•Contribution to GDP –9.8% (2012-13)
•About 38.6% of the total consumption expenditure of households was spent on food
& food products in 2011-12

16. Food Processing
Reason to Invest
•127 agro-climatic zones have been identified
•Strategic geographic location and proximity to food-importing nations
•Network of food processing training, academic and research institutes
•42 mega food parks are being set up in public-private partnership
•Low cost of skilled manpower
•121 cold chain projects are being set up to develop supply chain infrastructure.

17. Food Processing –Financial Incentive
Deduction of expenditure under ITA : For the investment made in the previous year and prior
to commencement of its operations.
•Businesses permitted 100% deductions:
•Setting up and operating a cold chain facility
•Setting up and operating warehousing facilities for storage of agricultural produce
•Businesses permitted 150% deduction
•Beekeeping and the production of honey and beeswax
•setting up and operation of a warehousing facility for the storage of sugar
Deduction of Tax from Profit:
@ 100% tax exemption for the first 5 years of operations for new units in the business of
processing, preservation and packaging of fruits or vegetables, meat and meat products, poultry,
marine or dairy products.

18. Food Processing –Financial Incentive
Central Excise Duty
•Nil excise duty in milk, milk products, vegetables, nuts & fruits –both fresh and dried
•Against a standard excise duty of 12%, processed fruits and vegetables carries a merit rate of
2% without CENVAT or 6% with CENVAT
Food Processing Machinery and parts:
•All refrigeration machinery and parts used for the installation of cold storage, cold room or
refrigerated vehicles for the preservation, storage, transport or processing of agricultural,
apiary, horticultural and marine produce as well as dairy and poultry, are exempt from excise
duty
•Machinery for pasteurizing, drying, evaporating, etc. used in the dairy sector is exempt from
excise duty

19. Custom Duty
•Full exemption from customs duty is being granted for import of to de-oiled soya extract,
groundnut oil cake/cake meal, sunflower oil cake/cake meal, rice bran/rice bran oil cake and
palm kernel cake until Dec 31, 2014
•All goods related to food processing, imported as part of the project -entitled to uniform
assessment at a concessional customs duty of 5%, plus countervailing duties as applicable
Service Tax is exempted from:
•Theconstruction,erection,commissioningorinstallationoforiginalworkspertainingtopost-
harveststorageinfrastructureforagriculturalproduce,includingcoldstorageforsuchpurposes
•Mechanizedfoodgrainhandlingsystem,machineryorequipmentforunitsprocessingagriculturalpro
duceasfoodstuff,excludingalcoholicbeverages
•Agenciesfortransportationoffruit,vegetables,eggs,milk,foodgrainsorpulses
•Loading,unloading,packing,storageorwarehousingofagriculturalproduce
Food Processing –Financial Incentive

20. BY -PRANESH J K
USN – 1DY14MBA16
MBA(VTU)