The Challenge

Grow at 10% for 3 decades

Ease of doing business

Making India a part of the global supply chain

Young India – skilling the nation and creating opportunities

Making India an hub for R&D

Making India a centre for large scale manufacturing

Urbanisation – a unique opportunity

Make in India initiative

Pillars of a new resurgent India

New Processes

New R&D

New Design

New Mindset

New Infrastructure

New Innovation

New Sectors

Ease of doing business

Make India the easiest and simplest place to do business

Eliminate paperwork, processes, procedures, rules & acts

Use technology to leapfrog

Converge & integrate departments

Radical Reforms- Ease of doing business

No minimum capital. No common seal. No declaration ofcommencement of business

Online & real-time registration with ESIC & EPFO, P AN & T AN

Combined returns under 8 labour laws

Documents for exports and imports reduced from 1 1 to 3.

Delicensing of defence – 56% of defence items taken out of licensing requirement

Making India part of the global supply chain

LIBERALIZED FDI REGIME:

Railways – 100%

Construction – 100%

Medical Devices – 100%

Defence – 100%

Insurance and pension funds – 49%

Plantation (select sectors) – 100%

Civil Aviation: Non-scheduled Air Transport and Ground

Handling Services – 100%

Liberalized Foreign Direct Investment Regime

India today is one of the most open economies of the world

100% FDI permitted in Telecom Sector

100% FDI permitted in Asset Reconstruction Companies

100% FDI in single-brand retail

100% FDI in Pharmaceuticals sector

Recent FDI Policy Reforms

FDI under automatic route for LLPs operating in automatic

route sectors and sectors without conditionalities

Non-repatriable investments by NRIs and entities owned and

controlled by NRIs to be domestic investment

Manufacturers permitted to sell products through e-commerce

as well, without Government approval

100% FDI allowed in majority activities of broadcasting sector

Regional Air Transport Services (RSOP) eligible to receive

FDI up to 49% under automatic route

Recent FDI Policy Reforms

Full fungibility of investment provided by permitting portfolio

investment up to sectoral cap of 74% in Private Banking Sector

Automatic exit allowed in Construction Sector after lock-in

period of 3 years

100% FDI under automatic route permitted in White Label ATM

Make in India - impact on FDI

48%GROWTH

37.25

55.06

Nov, 2012 -May, 2014

Jun, 2014 -Dec, 2015

FDI Equity Inflow, USD billion

Top Sectors Receiving FDI (June 2014 –October 2015)

Service Sector Automobile Industry

Computer – SW&HW Hotel & Tourism

Trading Mining

Telecommunications Petroleum & Natural Gas

Construction (Infra) Activities Drugs & Pharmaceuticals

7 out of top 10 sectors receiving FDIare manufacturing related sectors

Delhi–Mumbai industrial corridor

Amritsar–Kolkata industrial corridor

Chennai–Bengaluru industrialcorridor

Bengaluru–Mumbai industrial corridor

Chennai–Vizagindustrial corridor

Creating new world class infrastructure

National Industrial corridor development authority (NICDA) being created

Converging Industrial corridors

100 smart cities

Transforming lives, transforming India

Urban India will contribute 75% of GDP by 2030

700 million Indians to get in the process of urbanisation

Creating an innovative, sustainable India

Urbanisation - a unique opportunity

Using technology to leapfrog - JAM

Jan dhan – 160 million new household accounts

Aadhar – 1 billion aadhar enrolments, Unique identity movement

Mobile – 900 million cell phone users (370 mn in rural areas)

India using mobile technology, unique identity & bank accounts

Indian Economy - what the world says:

48

New initiatives

Digital India - Transform India into a digitally empowered society and knowledge economy

Swachh Bharat Abhiyaan and Clean Ganga -

Focuses on building toilets, especially for women and

make India the cleanest country.

Clean Ganga initiative aims to make the river Ganga

clean and pollution free.

India at the heart of frugal engineering

Low cost but not low tech!

Renault KWID will do much better than any other car because it has

Indian Genes – Carlos Ghosn, chairman & ceo Renault

General electric’s Mac 400 electro cardio graph (ECG) Machine

{1500$ instead of 10000$ for its predecessor. Cost of ECG just 1$}

Heart surgery costs between 2000$ & 5000& as compared to 20000-

100000$ in US

Jaipur foot for US $45 and jaipur knee for US $20 - 50 top inventions

of the world – Time magazine

Mangalyaan – Mars orbiter mission US 73 Million – 1/10th the cost of

any previous Mars mission.

India - an R&D powerhouse

1st choice for tech MNCs to set up R&D centres outside their

home countries

Leading offshore destination for engineering and R&D services

Talent, technology & emerging market imperative during R&D

growth

Resurgence in the number of R&D centers, almost 10,000

companies employing 5,00,000 Indians

GE

Composite material design

Electromagnetic analytics

Nondestructive evaluation technology

Honeywell

Next generation magnetic sensors

Image analysis and computer vision

Intelligent vehicle technologies

General MotorsSmart system modelingVehicle structure and safetyChemical reaction modeling

Source: Zinov Research & Analysis

Snapshot of core research by MNC R&D centers in India

Source: Zinov Research & Analysis

Snapshot of core research by MNC R&D centers in India

Philips

Healthcare systems and technologies

Energy and lighting

Consumer lifestyle technologies

EADS

High performance computing

Avionics

Structures

SiemensDecentralised energy systemsEmbedded systemsS.M.A.R.T.* technologies

Source: Zinov Research & Analysis

Snapshot of core research by MNC R&D centers in India

3M

Abrasives/adhesives

Coatings

NVH materials

ABB

Manufacturing technologies

Communication technologies

Robotics

Automobiles:India’s car market potential: 6+ Millions units annually by

2020

Auto-components:Over 35 IPOs of Global OEMs & Tier 1 procuring from India

Aviation:9th largest civil aviation market in the world

Biotechnology:Amongst top 12 biotech destinations in the world; 3rd

in the Asia-Pacific region.

Chemicals:3rd largest in Asia & 6th largest by output in the world.

.Construction:

Approx. USD 650 billion required for urban

infrastructure over the next 20 years

Defence:Up to 49% FDI is now allowed under the government route and

beyond 49% with the approval of cabinet committee

Electrical Machinery:The industry has grown close to

USD 25 billion. It contributes 1.4%

to the nation’s GDP and 10% to the

manufacturing growth.

Electronic Systems

Expected demand to reach

USD 400 Billion by 2020,

aided by government

schemes

Food Processing:National Food Processing Policy aims to increase the level of food

processing from 10% in 2010 to25% in 2025.

Leather:Total production value of US$11 bn with great potential for exports

and a huge domestic market

Media and Entertainment:

The industry is expected to

register a CAGR of 14.2%,

reaching INR 1785.8 Billion in

2018

Mining:India has vast minerals potential with mining leases

granted for longer durations of 20 to 30 years

Oil and Gas:Threefold increase in energy

demand expected in India by 2035 to

1,516 mn tonnes of Oil Equivalent from

563 mn Tonnes of Oil Equivalent in

2012.

IT & BPM:The IT-BPM sector constitutes 8.1% of thecountry’s GDP and

contributes significantly to

public welfare

Ports:Special Economic Zones are being developed in close proximity to several

ports – comprising coal-based power plants, steel plants and oil refineries

Railways:100% FDI under the auto route in the railway infrastructure

segment

Roads and Highways: Extensive road network of 4.86 mn kms: 2nd largest in the world

Pharmaceuticals:

Expected to rank among top

3 pharmaceutical markets in

terms of incremental growth

by 2020.

Renewable Energy:India stands fifth in the world in the overall renewable energy

capacity installation with an installed capacity of 33,792MW

Textiles:India has the second-largest manufacturing capacity globally.

Thermal Power:4 ultra mega power projects

awarded and five more ultra mega

power projects), under the plug

and play model will be set up with

total investments of ₹1 trillion

Tourism:Foreign tourist arrivals to India has risen 7.1% to 7.5

million in 2014.

Wellness:The sector is growing at 20% from year to year and is projected to

amount to INR 162 Billion in 2014

Space:India is a world leader in lowcost space exploration andIndian space program stands

out as the most cost effective

in the world