The document discusses Prime Minister Modi's "Make in India" project and its impact on foreign direct investment (FDI) in India. It provides background on FDI, traces the evolution of FDI in India, and outlines the types and forms of business presence for foreign investors in India. It then describes the objectives and policies of the "Make in India" initiative, launched in 2014 to encourage manufacturing in 25 key sectors. Some impacts of "Make in India" include growth in FDI inflows, with India surpassing China and the US to become the top FDI destination in the first half of 2015. Achievements include India rising in various global rankings and a 48% increase in annual FDI inflows from October

1. PM’s Make In India Project and
its impact on FDI in India
Rency Raj J – ERBE11026
Gowtham – ERBH16006

2. AGENDA
• What is FDI?
• Evolution of FDI in India
• Types
• Forms of Business Presence in India
• Make in India
• Impacts and Achievements
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3. What is FDI?
• FDI is a key component in global economic integration.
• Foreign direct investment (FDI) is an investment made by a company
or individual in one country in business interests in another country, in
the form of either establishing business operations or acquiring
business assets in the other country, such as ownership or controlling
interest in a foreign company.
• FDI is an important vehicle of technology transfer from developed
countries to developing countries.
• FDI is an important source of non-debt financial resources for country
for economic development .
• It is a means of achieving technical knowhow and employment
generation.
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4. Evolution of FDI in India
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5. 5
Progressive Liberalisation

6. Types
Investment Strategy
• Greenfield Investment
Strategy
• Brownfield investment
Strategy
Investors
• Individual:
– FVCI (Foreign Venture Capital
Investors)
– Pension/Provident Fund
– Financial Institutions
• Company:
– Foreign Trust
– Sovereign Wealth Funds
– NRIs (Non Resident Indians)/ PIOs
(Persons of Indian Origin)
• Foreign Institutional Investors:
– Private Equity Funds
– Partnership / Proprietorship Firm
– Others
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FDI
• Horizontal FDI
• Vertical FDI

7. Forms of Business Presence in India
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8. 8
The Entry Process
Automatic Route Government Route
Investing in India
No Central Government
Permission is required.
Applications are considered by the
Foreign Investment Promotion Board (FIPB).
Approval from Cabinet Committee on
Security is required for more than 49% FDI
in defence.
The proposals involving investments of more
than USD 769.23 million are considered by
Cabinet committee on economic affairs.

9. STEPS INVOLVED IN INVESTMENT
• Identification of structure
• Central Government approval if
required
• Setting up or incorporating the
structure
• Inflow of funds via eligible
instruments and following pricing
guidelines
• Meeting reporting requirements of
RBI and respective Act
• Registrations/obtaining key
documents like PAN etc.
• Project approval at State/UT level
• Finding ideal space for business activity
based on various parameters like
incentives, cost, availability of man power
etc.
• Manufacturing projects are required to file
Industrial Entrepreneur’s Memorandum
(IEM), some of the industries may also
require industrial license.
• Construction/renovation of unit.
• Hiring of manpower.
• Obtaining licenses if any.
• Other state & central level registrations.
• Meeting annual requirements of a
structure, paying taxes etc.
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10. MAKE IN INDIA
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11. MAKE IN INDIA
• Make in India was launched on September 25, 2014, by Prime Minister Narendra Modi
to encourage multinational as well as domestic companies to manufacture their products
in India.
• Vision: The initiative hopes to attract both capital and technological investment in India
and that the country will become the top destination globally for foreign direct
investment (FDI), surpassing even China and the United States.
• Logo –inspired by the Ashoka Chakra – is a striding lion made of cogs, symbolising
manufacturing, strength and national pride.
• Objective: To focus on job creation and skill enhancement in 25 key sectors of the
economy, including automobiles, aviation, biotechnology, defence manufacturing,
electrical machinery, food processing, oil & gas, and pharmaceuticals, among others.
• Key policies -- ease of doing business, getting away with archaic laws, 100 Smart
Cities, disinvestment of public sector undertakings, skills and jobs for the youth, making
India a manufacturer
• Major challenges include creating a healthy business environment, removal of
unfavourable factors, more focus on Indian’s micro, small and medium enterprises
(MSME), lack of world class research and development (R&D), and comparisons with
China's ‘Made in China’ campaign
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13. MAKE IN INDIA PROJECTS AND
POLICY CHANGES

14. KEY IMPACTS - GROWTH IN FDI
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Top 5 destinations —
H1 2015
Country Capex ($bn)*
India 31
China 28
US 27
UK 16
Mexico 14
Source: fDi Markets.
As per the FDI Markets, a
Financial Times, London
data service -India has
surpassed China and the
US to take the pole
position in attracting
largest FDI in the first half
of 2015
India is in pole position to pass both China and the
US in the FDI league tables this year

16. FDI into Asia Pacific in 2015
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17. India Overtakes China
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18. MAKE IN INDIA - ACHIEVEMENTS
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48%
India's Position in the Rating of The World's Fastest Growing
Economies – IMF report, April 20151
India's Rank Amongst The World's Topmost Investment
Destinations, From 110 Countries polled – Baseline profitability
Index, 2015
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India's Position Amongst 100 Countries On The Growth, Innovation
And Leadership Index – Frost & Sullivan, 2015
India's Position Amongst World’s Best Prospective Investment
Destinations – UNCTAD report, 2015
The Increase In Year-on-year Growth In Foreign Direct Investment
Inflows Recorded For The Period October 2014 To April 2015 –
PIB, India, 2015
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The Number Of Government Services That Can Be Availed Of By An
Investor At A Single Window Online Portal20

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