MAKE IN INDIA

1. MAKE IN INDIA MAKE IN INDIA
Presented By Akshay Saini MBA 1st Sem

2. Overview
• Make in India campaign was launched by Prime Minister Mr. Narendra
Modi on 25th September 25th 2014
• It is a national program designed to transform India into global
manufacturing hub
• The initiative is meant to cut red tape, spur foreign investment and
transform India into a vibrant economy
• Twenty five sectors have been identified as priority areas including
Automobile, construction, Food processing, IT, Defence, Aviation and
many more
• Introduction of 24/7 e-portal to address the industry concern and get back
to them 48-72 hours
• It includes major new initiatives designed to facilitate investment, foster
innovation, protect intellectual property and built best in class
Manufacturing Infrastructure
Presented By Akshay Saini MBA 1st Sem

3. Sectors
Presented By Akshay Saini MBA 1st Sem
Automobiles
Biotechnology
Defence Manufacturing
Food Processing
Media and Entertainement
Pharmaceuticals
Renewable Energy
Railways
Oil and Gas
Leather
Aviation
Textile and garments
Wellness
Ports
Mining
IT and BPM
Ports
Roads and Highways
Thermal power
Space
Construction
Electronic System

4. Sector Growth Driver Reason to invest FDI policy
Automobile Passenger Vehicle are to increase
at a CAGR of 16% between 2013-
20
Growing Working Population and
expanding middle class
Increasing disposable income in
rural agri-sector
Favourable government policies
like lower excise duties,
automotive mission plan
Easy finance schemes owing to
which the auto finance industry
has grown at the rate of 13%
between 2008-13
By 2015 India is expected to be fourth
largest automotive market volume in
the world
India’s car market has the potential to
grow 6+ million unit annually 2020
Emergence of large automobile
cluster
An R&D: Strong support from the
government
Presented By Akshay Saini MBA 1st Sem
100% FDI is allowed in automatic
route
IT AND BPM
Revival in demand for IT services
from US and Europe
Increasing adoption of technology
and telecom by customers
High value client additions bigger
than USD 1 million registering
13.5% growth
The IT-BPM sector contributes 8.1%
of the country GDP
India’s IT industry amounts to 7% of
global market
Rapidly growing urban infrastructure
has fostered several IT centres
Upto 100% is permitted under
automatic route
Food processing
Liberalization and growth of
organized retail
Rising income level and growing
middle class
Favourable economic and cultural
transformation and shift in
attitudes and lifestyle
A rich agricultural resource base
A low cost of skilled manpower
Attractive fiscal incentives by state
and central government in the form of
subsidies, Tax rebates etc
42 mega food parts are setup in PPP
at an investment of 98 billion rupees
100% FDI is permitted in automatic
route for most product
Chart showing scope of different sector under the Make in India campaign

5. Sector Growth Driver Reason to invest FDI policy
Textile and Garments Rising per capita income
,favorable demographics and shift
in preference for branded products
Increase in domestic demand is
set to boost cloth production
Favourable policies of
government of India
Expansion of retail sector with
many global players entering the
market
Presented By Akshay Saini MBA 1st Sem
Road and highways
Second largest manufacturing capacity
globally
Accounts for 14% of world production
of textile fibre and yarn
Abundant raw materials and increasing
demand for exports
Increased penetration of organized
retail
100% FDI is allowed in automatic
route
An outlay of USD 3.8 billion for the
highway sector has been provided
in 2013-14
The GOI aims to develop a total of
64340 Kms of national highways
Under various programmes
The rise in four wheeler and two
wheeler vehicle ,Increasing freight
traffic, strong trade will augument
growth
The transport sector constitutes 6% of
country GDP and 70% share of road
sector
Emergence of private sector as a key
player
Establishment of major initiatives by
GOI to upgrade highways in the country
100% FDI is allowed under
automatic route
Construction
India has a housing shortage of
65 million million dwelling units
Introduction of new urban
development mission which will
help in the development of cities
Different levels of FDI based on
different parameters
An investment of USD 1000 billion
has been projected for infrastructure
sector
Ease access to funding for the sector
Construction activities contribute
more than 10% of India’s GDP

6. INDUSTRY POTENTIAL
120
100
80
60
40
20
160
140
120
100
80
60
40
20
Presented By Akshay Saini MBA 1st Sem
I
Automobile
58.5
145
160
140
120
100
80
60
40
20
0
2011 year 2016
Billion
Textile and garment
67
100
0
2013-14 2016-17
Industry
size
Year
Real estate
market
78
140
0
2013 2017
USD
billion
The total turnover of automobile sector in 2010-11 was USD58.5
billion ,turnover by 2016 is slated to be USD 145 billion
The domestic textile and apparel industry in India is estimated to
reach USD 100 billion by 2016-17 from USD 67 billion in 2013-14
As per the industry estimate ,the Indian Real estate market is
estimated to be USD 78billion in 2013 and is expected to grow to
USD 140 billion

7. Drivers
 Development of industrial cluster and new smart cities will foster India’s manufacturing infrastructure and
innovation capacity
 India’s high value industrial sectors-Defence ,Construction and railways are now open to global participation
 Policy in Defence sector liberalised and FDI cap raised from 26% to 49%
 100% FDI under automatic route permitted in construction ,operations and maintenance in specified rail
infrastructure projects
 Opportunity for domestic companies having leadership in innovation and technology to turn themselves into
Presented By Akshay Saini MBA 1st Sem
a global champions
 Increasing Venture capital and private equity activities will further provide the impetus to the domestic
companies
 Implementation of major reforms could push India’s Gross Domestic Product to over $4.5 trillion by FY20
 Sme’s contribute 90% of all industrial units and 40% export within the manufacturing sector

8. Ease of Doing Business
Doing business in India just got easier-new delicencing and deregulation measures are reducing complexity, and
significantly increasing speed and transparency
Process of applying to industrial licence made online on 24X7
basis through e-biz portal
Services of all central government will be integrated with the
E-biz
Validity of industrial licence extended to three years
All return should be filed online through a unified form
Presented By Akshay Saini MBA 1st Sem

9. Barriers
• The manufacturing sector has performed poorly by recording a expansion of
barely 1.1% growth in 2012-Boost to Manufacturing sector 13 followed by a contraction of 0.7% in 2013-14
• From 2010 to 2012,the country’s stock of FDI just totalled 12% of GDP while
Need to increase FDI the developing country average was 30%
• The growth has continued to slow down and has been running below 5% for
the last 2 years .For a massive increase in the growth rate by 4% to GDP,$ 200
billion of FDI would be needed
Presented By Akshay Saini MBA 1st Sem
Help in reviving growth
Low share of manufacturing
Lack of ease of doing business
The current share of manufacturing sector to India’s GDP is only 15%.It compares
poorly to other Asian nations
India ranks 134th out of 189 countries in World Bank ease of doing business
Index.The world bank report notes that it takes 27 days to start a business in India.In
Singapore it takes two and a half days

10. Increased Investment Activity
Increase in the FDI limits in various sectors will encourage foreign investment by various types of investors like Pension
Funds, Foreign trusts, Private equity firms and partnership firms.However there are certain sectors where limit is fixed
by the government of India
Increased incentive provided by Government
includes:
Investment allowance at the rate of 15% to
manufacturing that invest more than INR 1 billion in
plant and machinery
Incentives available to unit setup in SEZ ,NIMZ and
EOU
Exports incentive like duty drawback, Duty
exemption, focus product and market schemes
Area based incentive like unit setup in north east
region, Jammu and kashmir
Sector specific incentives like M SIPS in electronics
Presented By Akshay Saini MBA 1st Sem

11. Thank You
Presented By Akshay Saini MBA 1st Sem