A presentation on "Make in India" campaign which was initiated by Mr. Narendra Modi

1. Make in India is an initiative program of the Government of India to encourage Multinational Companies and domestic
companies to manufacture their products in India. It was launched by Prime Minister, Narendra Modi on 25 September
2014.
Date
September 25, 2014 (2014-
09-25)
Location New Delhi, India
Organised by
Narendra Modi
Government of India
Website www.makeinindia.com
A National Program designed to facilitate Investment, Foster Innovation, Enhance Skill Development, Protect
Intellectual Property and build Best-in-class Manufacturing Infrastructure.
Make in India

2. History
 The program was launched on 25th September,2014 in a function at Vigyan Bhawan by the Indian
Prime Minister Mr. Narendra Modi.
 On 29 December 2014, a workshop was organized by the Department of Industrial Policy and
Promotion which was attended by Modi, his Cabinet ministers, chief secretaries of states and various
industry leaders.
 “Zero Defect Zero Effect" is a slogan coined by Prime Minister of India, Narendra Modi which
signifies production mechanisms wherein products have no defects and the process through which
product is made has zero adverse environmental and ecological effects. The slogan also aims to
prevent products developed from India from being rejected by the global market.

3.  The major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skill
enhancement.
 Some of these sectors are automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather,
tourism and hospitality, railways, renewable energy and electronics etc.
 The initiative hopes to increase GDP growth and tax revenue.
 The initiative also aims at high quality standards and minimizing the impact on the environment.
 The initiative hopes to attract capital and technological investment in India.
Objectives

4.  In August 2014, the Cabinet of India increased foreign direct investment (FDI) from 26% to 49% in the defence sector
and from 0% to 100% in railways infrastructure. This was in hope of bringing down the military imports of India.
 Out of 25 sectors, except Space(74%), Defence(49%) and News Media(26%), 100% FDI is allowed in rest of sectors.
 Between September 2014 and August 2015, the government received ₹ 1.10 lakh crore (US$17 billion) worth of
proposals from companies interested in manufacturing electronics in India.
 24.8% of smartphones shipped in the country in the April-June quarter of 2015 were made in India, up from 19.9%
the previous quarter.
Overview

5. Responses
In January 2015, HyunChil Hong, the President & CEO of Samsung South Asia, met
with Kalraj Mishra, Union Minister for Micro, Small and Medium Enterprises
(MSME), to discuss a joint initiative under which 10 "MSME-Samsung Technical
Schools" will be established in India. In February, Samsung said that will
manufacture the Samsung Z1 in its plant in Noida.
In February 2015, Hitachi said that it would increase its employees in India from
10,000 to 13,000 and it would try to increase its revenues from India from ¥100
billion in 2013 to ¥210 billion. It said that an auto-component plant will be set up
in Chennai in 2016.

6. Also in February, Marine Products Export Development Authority said that it was
interested in supplying shrimp eggs to shrimp farmers in India under the initiative.
On 11 August 2015, the company announced that the first manufacturing unit at Sri
City in Andhra Pradesh was operational and introduced the Xiaomi Redmi 2 Prime,
a smartphone that was assembled at the facility.

7. In February 2015, Huawei opened a new research and development (R&D) campus
in Bangalore. It had invested US$170 million to establish the research and
development center. It is also in the process of setting up a Telecom hardware
manufacturing plant in Chennai.
On 18 August 2015, Lenovo announced that it had begun manufacturing Motorola
smartphones at a plant in Sriperumbudur near Chennai, run by Singapore-based
contract manufacturer Flextronics International Ltd. The plant has separate
manufacturing lines for Lenovo and Motorola, as well as quality assurance, and
product testing. The first smartphone manufactured at the facility was the 4G variant
of the Motorola Moto E (2nd generation).

8. 1. Ease of business: Make in India is a policy that combines incentives with easy handling of businesses and a faster redressal machinery. India lies at 142nd place in
the Ease of Doing Business Index below several African countries.
2. Skill and jobs for the youth: Skill endowment and job creation in 25 key industries will be encompassed under this plan for able youth development and
relevant training in certain key areas.
3. Making India a manufacturer: Urging global investors to make India an industrial hub is the eye-catching feature about which all of us read every day. This
includes making India a destination for production of goods and exporting the same to the world over.
4. 100 smart cities: This will also help in achieving the target of 100 smart cities and affordable housing schemes by making the investors a partner in the plan and
investors adopting a city.
5. Disinvestment of PSU: Certain inefficient and loss-incurring PSUs will be disinvested i.e. a certain part of them will be sold off to private players so as to
generate revenue. Private firms have an unmatched administration and management at times.
Key Policies

9. 5Things that show “Make in India” Campaign is Working
1 FDI is surging
Foreign direct investment between October and May was up by 40% Net investments by foreign institutional investors
totalled $40.92 billion in the fiscal year ended March 31, roughly seven times as much as in the prior year.
2 Industrial production is warming
Official data show India’s industrial production rose an average 2.7% year-over-year in the seven month period from
October to May compared to mere 0.6% increase an year earlier.
3Foxconn bet billions
Contract-manufacturing giant Foxconn announced plans to spend $5 billion on factories and research and
development in the western Indian state of Maharashtra.
4 GM doubled down
General Motors Co. recently announced it will invest another $1 billion.
5 Uber is ramping up its roll out
India is already its second-largest market in terms of cities served. To meet growing demand, Uber recently
announced will invest $1 billion over nine months to build its network in India.

10. SUMMARY
•Seventh-largest producer in the world with an
average annual production of 17.5 Million vehicles.
•4th largest automotive market by volume.
•4 large auto manufacturing hubs across the
country.
•7% of the country’s GDP by volume.
•6 Million-plus vehicles to be sold annually, by
2020
FDI POLICY
•100% FDI is allowed under the automatic route in the auto sector, subject to all the applicable regulations and laws.
FOREIGN INVESTORS
•Suzuki (Japan)
•Nissan (Japan)
•Volkswagen (Germany)
•Renault (France)
•Hyundai (South Korea)
•General Motors (USA)
•BMW (Germany)
•Ford (USA)
•Toyota (Japan)
REASONS TO INVEST
•By 2015, India is expected to be the fourth largest automotive market by volume in the world.
•Tractor sales in the country are expected to grow at CAGR of 8-9% in the next five years, upping India’s market potential
for international brands.
•Two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years.
Significant opportunities exist in rural markets.
•India’s car market has the potential to grow to 6+ Millions units annually by 2020.
Automobiles

11. SUMMARY
•9th largest civil aviation market.
•163 Million passengers in 2013.
•60 Million international passengers by 2017.
•85 international airlines connecting over 40 countries.
•3rd largest aviation market by 2020.
•800 aircraft by 2020.
REASONS TO INVEST
•India is one the fastest growing aviation markets and currently the ninth largest civil aviation market in the world.
•India is projected to be the 3rd largest aviation market by 2020.
•Total passenger traffic stood at 163.06 Million during 2013. The Indian aviation sector is likely to see investments
totalling USD 12.1 Billion during 2012-17; USD 9.3 Billion is expected to come from the private sector.
FOREIGN INVESTORS
•Airbus (France)
•Boeing International Corporation (USA)
•Air Asia (Malaysia)
•Rolls Royce (UK)
•Frankfurt Airport Services Worldwide (Germany)
•Airports Company South Africa Global (South Africa)
FDI POLICY
•100% FDI is permitted for greenfield airport projects under the automatic route.
•Up to 74% FDI is permitted for existing airport projects under the automatic route, above 74% and up to 100%
permitted under government approval route.
•Up to 49% FDI is permitted in domestic scheduled passenger airlines under the automatic route. 100% permitted
for NRIs.
Aviation

12. SUMMARY
•USD 1,000 Billion investments for infrastructure sector
projected in 12th five year plan (2012-17).
•USD 650 Billion investments in urban infrastructure estimated
over next 20 years.
•100% FDI permitted through the automatic route for
townships, cities.
•10% of India’s GDP is based on construction activity.
FDI POLICY
100% FDI through the automatic route is permitted in townships, housing, built-up infrastructure and construction-
development projects .
REASONS TO INVEST
•An investment of USD 1,000 Billion has been projected for the infrastructure sector until 2017.
• The Indian government has undertaken a number of measures to ease access to funding for the sector.
•Construction activities contribute more than 10% of India’s GDP.
•The construction industry in India has seen sustained demand from the industrial and real estate sector.
•An estimated USD 650 Billion will be required for urban infrastructure over the next 20 years.
FOREIGN INVESTORS
•Hines (USA)
•Veolia (France)
•Ascendas (Singapore)
•Aqualyng AS (Norway)
•Emaar Properties (UAE)
•The Trump Organization (USA)
•Alstom (France)
•GIZ (Germany)
Construction

13. FDI POLICY
•Up to 49% investment is allowed under the government route, above 49% on a case-to-case basis on approval by the
Cabinet Committee
•The requirement of single largest Indian ownership of 51% of equity removed.
•A lock-in period of 3 years on equity transfer has been done-away with in FDI for defence.
REASONS TO INVEST
•India’s current requirements on defence are catered largely by imports.
• Opportunities to avail defence offset obligations to the tune of approximately INR 250 Billion during the next 7-8 years.
•The government policy of promoting self-reliance, indigenization, technology up gradation and achieving economies of
scale and developing capabilities for exports in the defence sector.
•High government allocation for defence expenditure.
FOREIGN INVESTORS
•Airbus (France)
•BAE India Systems (UK)
•Pilatus (Switzerland)
•Lockheed Martin (USA)
•MBDA (France)
•IAI (Israel)
SUMMARY
•3rd largest armed forces in the world.
•40% of budget spent on capital acquisitions.
•60% of requirements met by imports.
•INR 250 Billion to be invested in 7-8 years.
Defence

14. REASONS TO INVEST
•Global demand to reach USD 94.2 Billion by 2015.
•India has the third largest pool of scientists and technicians in the world.
•Skilled manpower available in abundance in Semiconductor Design and Embedded Software.
•Strong design and R&D capabilities in auto electronics and industrial electronics.
FDI POLICY
•100% FDI is allowed under the automatic route in the Electronics Systems Design & Manufacturing sector and is
subject to all applicable regulations and laws.
•In case of electronics items for defence, FDI up to 49% is allowed under the government approval route, whereas
anything above 49% is allowed through the approval of the cabinet committee on security.
SUMMARY
•3rd largest pool of scientists in the world.
•USD 29 Billion consumer electronics market by 2020.
•USD 94.2 Billion – demand projected by 2015.
•9.88% industry growth rate between 2011-15.
•2 government-driven incentives – National Knowledge
Network & National Optical Fibre Network.
FOREIGN INVESTORS
•Samsung (South Korea)
•IBM (USA)
•LG (South Korea)
•Dell (USA)
•Motorola (USA)
•Lenovo (China)
•Flextronics (USA)
•Foxconn (Taiwan)
•Bosch (Germany)
Electronic Systems

15. FDI POLICY
100% FDI under automatic route is permitted for the following:
•Construction, operation and maintenance of sub-urban corridor projects through PPP.
•High speed train projects.
•Signalling systems.
•Freight terminals.
•Passenger terminals.
FOREIGN INVESTORS
•EMD (USA)
•Bombardier Transportation (Canada)
•GE (USA)
•Siemens (Germany)
•Alstom (France)
SUMMARY
•4th largest rail freight carrier in the world.
•USD 1,000 Billion worth of projects to be awarded through
Public Private Partnership.
•1.3 Million-Strong workforce.
•World’s largest passenger carrier.
REASONS TO INVEST
•100% FDI in the railway infrastructure segment has been allowed recently
•Indian Railways has begun exploring the PPP mode of delivery and aims to award projects worth USD 1,000 Billion
through the PPP route.
•The sector aims to boost passenger amenities by involving PPP investments in provision of foot-over bridges, escalators
and lifts at all major stations.
Railways

16. SUMMARY
•USD 3.8 Billion outlay planned for highways.
•4.86 Million km of roads and highways.
•USD 19 Billion infrastructure development between 2012-17.
•100,000 km of national highway by the end of 2017.
•100 completed Public Private Partnership Projects.
REASONS TO INVEST
•The transport sector constitutes 6% of the country’s GDP and 70% of the share of the roads sector.
•India has an extensive road network of 4.86 Million km which is the second largest in the world.
•More than 60% of freight and 90% of passenger traffic in the country is handled by road.
•The government of India has launched major initiatives to upgrade and strengthen highways and expressways in
the country.
FDI POLICY
•100% FDI is allowed under the automatic route in the road and highways sector, subject to applicable laws and
regulation.
FOREIGN INVESTORS
•Jiangsu (China)
•Hyundai Engineering Construction Company Ltd. (Korea)
•Isolux (Spain)
•Apollo, JLI & LOR (UK)
•OJSC Consortium, SIBMOST (Russia)
•GALFAR Consortium (UAE)
•Zignego Company Inc. (USA)
•Galfar Engineering and Contracting, SAOG (Oman)
Roadways

17. FDI POLICY
•100% FDI is allowed under the automatic route in tourism and hospitality, subject to applicable regulations and laws.
•100% FDI allowed in tourism construction projects, including the development of hotels, resorts and recreational
facilities.
FOREIGN INVESTORS
•Accor (France)
•Starwood Hotels (USA)
•Marriott Hotels (USA)
•Expedia (USA)
•Premier Travel Inn (UK)
•Mandarin Oriental (Hong Kong)
•Jumeirah (UAE)
SUMMARY
•6.8% of India’s GDP.
•USD 18.13 Billion in foreign exchange earnings.
•1 Billion domestic travellers.
•30 world heritage sites.
•21 hotel management institutes.
•78 jobs with every USD 1 Million invested.
•25 bio-geographical zones.
REASONS TO INVEST
•Tourism in India accounts for 6.8% of the GDP and is the third largest foreign exchange earner for the country.
•India ranks 42nd in the United Nations World Tourism Organization rankings for foreign tourist arrivals.
•India registered 6.97 Million foreign tourist arrivals in 2013, registering an annual growth of 5.9% over the
previous year.
•India is the 16th most visited country in the world, with a share of 1.56% in the world’s tourism receipts.
Tourism

18. SUMMARY
•India’s space programme stands out as one of the most cost-effective in the world.
•33 countries and 3 multinational bodies have formal co-operative arrangements in place with the Indian Space Research
Organization.
•30 space crafts in differing orbital paths.
REASONS TO INVEST
•Through the last four decades, India’s space program has attracted global attention for its accelerated rate of development.
•India’s cost-effective space program has launched 40 satellites for 19 countries to date and has the potential to serve as the
world’s launch pad.
•With the ISRO undertaking the development of cutting edge technologies and interplanetary exploratory missions, there is
a tremendous scope in contributions to the realization of operational missions and new areas such as satellite navigation.
FDI POLICY
•FDI up to 74% is allowed in satellites- establishment and operation, subject to the sectorial guidelines of the
Department of Space/ISRO, under the government route.
Space