INVEST INDIA - cieca.org.tw

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INVEST INDIAIndia's National Investment Promotion Agency

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TRANSFORMING INDIA

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TRANSFORMING INDIA

FASTEST GROWING

ECONOMY

TOP INVESTMENT

DESTINATION

7.1%2016

$161BApril 2014 – March 2017

c

POPULATION

AVERAGE AGE

1.5B2030

292025

$3.6T2025

600M300M in 2004

CONSUMER MARKET

MIDDLE CLASS

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MISSION INDIA – INCLUSIVE GROWTH

1.2 billion

Internet Users

DIGITAL INDIA

Provide broadband connectivity to 250,000 villages

Create 400,000 public internet access points

Expected spend: more than $20 Billion

MAKE IN INDIA

Sectors, Processes,

Infrastructure &

Mind-set

Thrust on boosting manufacturing sector by creating 100 million jobs by 2022

25 Key sectors in focus

Bank Accounts for all

JAN DHAN YOJANA

Access to various financial services to weaker sections and low

income groups

>$10 Billion* deposited in bank accounts as of 31.08.2017

*https://www.pmjdy.gov.in/account

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'MAKE IN INDIA'

• Launched: September 2014

• Objective: Make India as the

most preferred global

manufacturing destination

• 25 focus sectors

• >7000 procedures/policy

revisions

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POPULAR CAMPAIGN

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6th largest manufacturing country in the world from the 9th

after Make in India

4.25 million FANS

3.26 million followers

23.8 million Page views

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'MAKE IN INDIA' FOCUS SECTORS

Auto

$300 billion

Chemicals

$400 billion

Electronics

$400 billion

Auto Comp

$115 billion

Construction

$640 billion

Food Processing

$320 billion

Aviation

$82 billion

Defence

$130 billion

IT / BPM

$350 billion

Biotech

$100 billion

Capital Goods

$112 billion

Leather

$30 billion

Pharma

$55 billion

Roads

$150 billion

Tourism & Hospitality

$419 billion

Media & Entertainment

$30 billion

Ports

$150 billion

Space

$40 billion

Wellness

$7 billion

Railways

$142 billion

Textiles

$223 billion

Mining

$80 billion

Renewables

$100 billion

Thermal Power

$125 billion

Oil & Gas

$110 billion

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MAKE IN INDIA: EASE OF DOING BUSINESS

FDI POLICY 2016

Open Economy

GOODS & SERVICES TAX

Single Tax from July 2017

IPR POLICY 2016

Promote innovation, strict

enforcement & expedited process

COMPANIES ACT 2015

Simplified Compliance

PERMANENT RESIDENCY

PRS for investors for 10 years

eBIZ PORTAL

Single portal for company licensing

& registration

BANKRUPTCY CODE

Time-bound Insolvency Process

E-VISA

E-Visa for 161 countries

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GOODS & SERVICES TAX

EASE OF DOING BUSINESS

Removal of 17 indirect tax levies, thus reducing

cascading effect of tax

Simplification of tax administration & compliance

More transparent Indirect Tax regime; increased tax

collection

Removal of Inter-State tax levies

INCLUSIVITY

COST ADVANTAGES

Drop in costs of capital goods, lower inventory and

working capital requirements

Seamless transfer of goods in the country : efficient

and low cost logistics

Unorganized sector to come under tax regime

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MODES OF ENTRY

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SIMPLIFYING PROCESSES

Single window clearance

Integrated for 6 departments

24x7 customs clearance

19 ports

17 air cargo complexes

ENVIRONMENTAL CLEARANCES

NOT REQUIRED

FOR

36 WHITE

CATEGORY INDUSTRIES

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INDIA: LEADING DESTINATION FOR FDI

ST INVESTMENT DESTINATION

ST ON GROWTH, INNOVATION AND LEADERSHIP INDEX

ST CHOICE FOR TECH MNCs TO SET UP R&D CENTRES OUTSIDE THEIR HOME COUNTRIES

ST ST GREENFIELD FDI DESTINATION1 111

IN ECONOMIC GROWTH IN 2016 & 20171

Source: UNCTAD, EY, Financial Times, Foreign Policy Magazine, and US News

MOST VALUED NATION BRAND IN THE WORLD

Source: Brand Finance

Source: WIPO, 2015-17 Source: World Bank, 2016Source: Department of Industrial Policy & Promotion, Government of India

USD

Source: Department of Industrial Policy & Promotion, Government of India

6TH

MANUFACTURING NATION IN WORLD

Source: UNIDO

Source: Frost & SullivanSource: Zinnov Management ConsultingSource: IMF and UN

161BN

INDIA’S HIGHEST EVER FDI INFLOW

62%GROWTH IN FDI INFLOWS 2014-17

32UP

Source: World Bank, 2014-16

PLACES ON GLOBAL COMPETITIVENESS INDEX

19UP

PLACES ON LOGISTICS PERFORMANCE INDEX

21UP

PLACES ON GLOBAL INNOVATION INDEX

Source: Financial Times

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7 LARGEST

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STATES

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BhutanNorth East

JAMMU & KASHMIR$1,52012.5M

MADHYA PRADESH$1,218

73M

ANDHRA PRADESH$2,088

50M

KARNATAKA$2,637

61M

MAHARASHTRA$2,902111M

KERALA$2,925

33M

NCT of DELHI$4,997

20M

UTTAR PRADESH$91520M

UTTARAKHAND$2,884

10M

HIMACHAL PRADESH$2,744

7M

RAJASTHAN$1,59169M

GUJARAT$2,583

60M

PUNJAB$2,33228M

TELANGANA$2,710

35M

JHARKHAND$1,169

33M

BIHAR$757100M

GOA$5,071

1M

HARYANA$3,25025M

TAMIL NADU$2,703

72M

WEST BENGAL$1,488

91M

CHATTISGARH$1,120

20M

ODISHA$1,294

41M

Per Capita Income above $2000

Per Capita between $1000-$2000

Per Capita Income below $1000

STATEPer Capita Income (2016)

Population (2011)

INDIA$1,709 (2016)

1,210 M (2011)

WESTERN AND SOUTHERN STATES HAVE BETTER THAN NATIONALAVERAGES

Sources: Census India 2011; World Bank; Invest India analysis

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ELECTRONICS MANUFACTURING

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45

125

227

20 42

100

FY09 FY14 FY20

Projected Demand supply gap in electronics industry ($ Billion)

Total Demand($BN) Total Domestic Production ($BN)

ELECTRONICS MANUFACTURING & DESIGN

Source: National Policy on Electronics, 2012

A huge investment opportunity exists for various Small & Medium Enterprises to fulfill this gap by manufacturing locally

Design FabricationComponent

ManufacturingAssembly

Configuration/Testing

Packaging, Distribution,

Repair

Sales & Marketing

Level of Maturity

While India has high maturity levels in certain activities of the manufacturing value chain, the country has immense scope of improvement to perform high value addition across the value chain.

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Mobile Devices, 27

Consumer Electronics, 18

Industrial Electronics, 15

IT/Office Automation, 10

Automotive, 8

Telecom, 8

Strategic (Aero & Defence), 7

Medical Devices, 4

Others , 3

% SHARE IN REVENUES

GROWTH DRIVERS

SIGNIFICANT LOCAL DEMAND

INDUSTRY 4.0

SKILLED LABOR

POLICY SUPPORT

Internet users added / minute

New mobile phone users added / minute

LCDs sold / minute

Air Conditioners sold / minute

Of work done, currently, is using robotics, by the auto and large OEMs of India

Electric vehicles sold / day

Students enroll in Higher Education / minute

Workers to be skilled / minute (500 million by 2022)

People enter the work force / minute

Subsidy on capital expenditure for electronics manufacturing

Mandatory procurement from domestic manufacturer for public procurement

Years of Phased Manufacturing Programmefor Mobile phones

Increase in number of connected devices, by 2020*

* Increase in the #connected devices from current 200 million to 2.7 billion by 2020, as per MEITY

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Incentivizes local manufacturers

INR 10,000 Crores Or31 December, 2018

INR17997 crores of worth of investments approved till 31.12.2016

20-25% Capital Subsidy

10% additional Production Subsidy for Fab Units

MODIFIED SPECIAL INCENTIVES PACKAGE SCHEME

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Year Sub-Assembly

2016-17 Chargers/adapters, battery pack, wired headset

2017-18 Mechanics, die cut parts, microphone & receiver, key pad, USB cable

2018-19 PCBA, camera module, connectors

2019-20 Display assembly, touch panel/cover glass assembly, vibrator motor/ringer

10% Basic Custom Duty imposed w.e.f01.07.2017

PHASED MANUFACTURING PLAN

Five-Year Program which aims to –

• Promote indigenous manufacturing• Progressively increase domestic value addition

Create a stimulus for -

1.25 Billion 5.6 Million 800 Million

Production Jobs Exports

2121

GLOBAL COMPANIES IN INDIA*

Ahmedabad-Vadodara Cluster ― Light Engineering,

Electrical Equipment

Delhi NCR Cluster — Electronics,

Electrical Machinery, Auto

Components, Real Estate

Andhra Pradesh― Light

Engineering,

Solar Modules

Mumbai-Pune Cluster ― Heavy

Equipment, Plastic

Components, Automobiles,

Consumer Durables, Real

Estate, Financial Services

Bengaluru Cluster ―

IT, Real EstateChennaiElectronics, auto

*Indicative List

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INVEST INDIA

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INVEST INDIA: ONE STOP SHOP

GOVERNMENT

Centre / States

Foreign Missions / Agencies

INDUSTRY

Associations / Corporates

Professional Advisors /

Academia

Investor AftercareStrategy &

ImplementationBusiness Advisory

Awareness &

Engagement

Long term

partnership

Issue RedressalRegulatory Clearances

Policy Guidance

Partner / Location

Search

Market Strategy

Opportunity

Assessment

Continuous

Engagement

UNCTAD Award for World’s

Best Practice IPA

2016

1 Best IPA in South Asia,

East Asia, Oceania

2016, 2017

Best Investment

Deal for IUIH

2016

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THANK [email protected]

INVEST INDIA - cieca.org.tw

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