Major Advancement in Ease of Business

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Make in India

Transcript of Major Advancement in Ease of Business

Page 1: Major Advancement in Ease of Business
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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

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Make in India initiativePillars of a new resurgent India

New ProcessesNew R&DNew Design New Mindset New Infrastructure New Innovation New Sectors

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Ease of doing businessMake India the easiest and simplest place to do

business Eliminate paperwork, processes,

procedures, rules & acts

Use technology to leapfrog

Converge & integrate departments

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Steps for Ease of Doing Business

Convert from manual to online

Eliminate touch points with applicants

Prepare checklists, adhere to them

Prepare timelines, punish delays

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Steps for Ease of Doing Business

Share information across platforms

Eliminate unnecessary steps and requirements

Merge processes wherever possible

Promote self-compliance, self-certification

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Initiatives taken by Government for Defence Sector

Large number of products taken off from licensing listLicensing requirement removed for dual use items Time period for implementing licence extendedValidity of security clearance extendedPartial commencement of production to be treated as

commencement for all productsSimplified forms, online application through eBiz

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Initiatives taken on Labour reform Unified portal (Shram Suvidha) for registration of

Units for LIN, reporting of inspections , submission

of returns and Grievance redressal launched

Employer registration with ESIC and EPFO made

online

Payments for ESIC and EPFO made online with 56

accredited banks

Combined return for 8 labour laws

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Initiatives taken for Companies

Amendment in the Companies Act, 2013 introduced to-

Eliminate requirement of minimum paid-up capital

Eliminate requirement of common seal

Elimination of declaration of Commencement of

Business

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Initiatives taken for Companies

Incorporation of company made a single step process by merging options for name availability and allotment of DIN

Single process for incorporation of company, allotment of PAN & TAN and registration with ESIC & EPFO

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Other ReformsDocuments required for import and export reduced to three from 10 and 7 respectively

Online single window for clearance of imported goods initiated:

• Message exchange with FSSAI & Plant Quarantine

Customs Clearance Facilitation Committee at ports to ensure expeditious clearance of goods

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Initiatives taken by States

Maharashtra Simplification of process for new electric

connection: reducing 4 processes and 46 days Integration of VAT and Professional Tax

registration process: Single ID for both taxes

Online registration of shops & establishments

Commercial divisions created in High Court

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Initiatives taken by States

NCT of Delhi

Real-time allotment of TIN for VAT registration

Online application for construction permits for

residential and industrial buildings: Elimination

of multiple interaction for applicants

Online registration of shops & establishments

Commercial divisions created in High Court

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eBiz- Integration of Services & Payment

Issue of Industrial License

Filing of Industrial Entrepreneurs Memorandum

Employer Registration with ESIC

MCA Name Availability

Issue of Director Identification Number (MCA)

MCA-Certificate Of Incorporation

MCA-Certificate for Commencement of Business

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Reporting of Advance Foreign Remittance to RBI

Reporting of FC-GPR

Issue of Permanent Account Number

Allotment of Tax Deduction and Collection Account Number

Employer Registration with EPFO

Importer Exporter CodeLicense for Possession and Sale or Possession and Use of Explosives

eBiz- Integration of Services & Payment

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Radical Reforms- Ease of doing business

No minimum capital. No common seal. No declaration ofcommencement of businessOnline & real-time registration with ESIC & EPFO, P AN & T ANCombined returns under 8 labour lawsDocuments for exports and imports reduced from 1 1 to 3.

Delicensing of defence – 56 % of defence items taken out of licensing requirementNRI investments be treated as Indian investments

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Making India part of the global supply chain

Liberalized FDI Regime:Railways - 100% Construction - 100%Medical Devices - 100%Defence - 49% Insurance and pension funds - 49%

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Liberalized Foreign Direct Investment RegimeIndia today is one of the most open economies

of the world100% FDI permitted in Telecom Sector

100% FDI permitted in Asset Reconstruction Companies

100% FDI in single-brand retail

100% FDI in Pharmaceuticals sector

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Make in India - impact on FDI (Oct - Apr)

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FDI inflows in India – top sectors (2014-15)

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Engagement figuresOver 12500 investor queries addressed through the Make in India portal21000 visitors on the e-BiZ portalSubscriber base of 5000 on the e-BiZ portal3.5 million fans on FB

558,000 followers on Twitter

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Delhi – Mumbai industrial corridor

Amritsar – Kolkata industrial corridor

Chennai – Bengaluru industrialcorridor

Bengaluru – Mumbai industrial corridor

Chennai – Vizag industrial corridor

Creating new world class infrastructure

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Delhi- Mumbai lndustrial Corridor

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Chennai- Bengaluru Industrial Corridor

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Bengaluru- Mumbai Industrial Corridor

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Chennai- Vizag Industrial Corridor

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National Industrial corridor development authority (NICDA) being created

Converging Industrial corridors

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New Mindset - Red Tape to Red Carpet24x7 online service to investors across the world

Response query mechanism

Proactive intervention with all state governments

Follow-up with all Government of India departments

Japan+ and Korea+ special desks

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100 smart citiesTransforming 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

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Using technology to leapfrog - JAMJan 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.

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Baseline Profitability Index, 2015 (Reported in Foreign Policy Journal) India ranked 1st among 110 countries in 2015 as compared to 6th in 2014.

World Bank Group: Global Economic Prospects, January, 2015

India to be world's fastest growing big economy by 2017.

OECDIndia is the only country among top economies to increase

its pace of growth.

Indian Economy - what the world says:

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Indian Economy - what the world says: UNCTAD News, World Investment Report, 2015

India climbs 6 places from 15th to 9th to join the league of world's top 10 countries by FDI inflows.

Frost and Sullivan, USA Award for Make in India, 2015Economic Development Innovation Award for Policy and Programme Implementation Excellence.

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Skill India - key challengeDemographic Dividend – 62% of population in Working Age Group104 Million to be skill trained by 2022New dynamic Skill Development & Entrepreneurship Policy National Occupation Standards laid down by Sector Skill Councils

NSDC is building scalable, for-profit vocational training institutions across India

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New initiativesDigital India - Transform India into a digitally empowered society and knowledge economySwachh Bharat Abhiyaan and Clean Ganga -

Focuses on building toilets, especially for women and make India the cleanest country

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India at the heart of frugal engineeringLow cost but not low tech!

Renault KWID will do much better than any other car because it hasIndian 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 inventionsof the world – Time magazine

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

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India - design & innovationA large consumer marketLarge B2B market, one of the largest business to govt marketsIndia - an innovation lab for companies combining technology, design, innovation

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India - a vibrant nation of startupsFastest and third largest ecosystem in the worldTechnology product, digital & manufacturing startups projected for rapid growth

10 fold increase in access to capital through VC’s, angel investment and seed fundingNation of job creators rather than job seekersIndia is in the midst of a startup boom

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India - an R&D powerhouseLeading 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.

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Fostering innovationStrong TRIPS compliant policy framework

Ease of Access: world-class IT enabled patent offices

Internationally acclaimed systems for International Searching and Preliminary Examination of patent applications.

Madrid system for international registration of trademarks

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GE Composite material designElectromagnetic analyticsNondestructive evaluation technology

HoneywellNext generation magnetic sensorsImage analysis and computer visionIntelligent 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

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Source: Zinov Research & Analysis

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

PhilipsHealthcare systems and technologies Energy and lighting Consumer lifestyle technologies

EADSHigh performance computingAvionicsStructures

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

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Source: Zinov Research & Analysis

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

3MAbrasives/adhesivesCoatingsNVH materials

ABBManufacturing technologiesCommunication technologiesRobotics

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Automobiles:India’s car market potential: 6+ Millions units annually by2020

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.

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.Construction:Approx. USD 650 billion required for urbaninfrastructure over the next 20 years

Defence:Up to 49% FDI is now allowed under the government route andbeyond 49% with the approval of cabinet committee

Electrical Machinery:The industry has grown close toUSD 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 foodprocessing from 10% in 2010 to25% in 2025.

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Leather:Total production value of US$11 bn with great potential for exportsand 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 leasesgranted for longer durations of 20 to 30 years

Oil and Gas:Threefold increase in energydemand 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

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Ports:Special Economic Zones are being developed in close proximity to severalports – comprising coal-based power plants, steel plants and oil refineries

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

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 energycapacity installation with an installed capacity of 33,792MW

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

Thermal Power:4 ultra mega power projects awarded and five more ultra megapower 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 7.5million in 2014.

Wellness:The sector is growing at 20% from year to year and is projected toamount to INR 162 Billion in 2014

Space:India is a world leader in low cost space exploration andIndian space program stands out as the most cost effective in the world

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For Queries, Assistance, Hand – Holding contact:

Mr. Siddhartha Anand

Investor Facilitation Cell,

Invest India

Email: [email protected]

+91-11-23487533

+91-11-8750221701

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