Job Creation and Economic

Development and to give the Indian

economy global recognition

Major objective
The major objective behind this initiative is to
focus upon the heavy industries and public
enterprises while generating employment in India.
To facilitate

Investment
Foster innovation
Enhance skills development
Protect intellectual property
To built best-in-class manufacturing infrastructure

5 things Make In India

will do

#1 Guide Foreign Investors

#2 Assistance to Foreign Investors
#3 Prompt Response
#4 Provide Relevant Information
#5 Proactive Approach

Why Make In India?

The first and most important condition in order to make in
India is to have a low inflation regime where policies are
predictable and consistent.
High inflation reduces two ingredients of a successful make in
India campaign
1. Capital accumulation &
2. The rate of change in productivity.
Beyond inflation, make in India investors will look for policy
stability with respect to trade, duties i.e both import and
export and taxation.

Contribution by the Sectors to Economy

28%
Agriculture
Manufacturing

Service

56%

16%

Sectors
Automobiles
Automobile
Components
Aviation
Biotechnology
Chemical
Construction
Defence
Manufacturing
Electrical
Machinery
Electronic

Systems
Food Processing
IT and BPM
Leather
Media and
Entertainment
Mining
Oil and Gas
Pharmaceuticals
Ports
Railways
Renewable

Energy
Roads and
Highways
Space
Textile Garments
Thermal Power
Tourism and
Hospitality
Wellness

SPACE
Indias space programme stands out as one of the most costeffective in the world.

Reason to Invest

Indias space program has launched 40 satellites for 19 countries.

With ISRO undertaking the development of technologies &
interplanetary exploratory mission, there is a scope in contribution
to realization of operational mission and new areas.

Growth Drivers

The Indian Space Research Organization

Space Commerce

FDI Policy

FDI up to 74% is allowed in satellites- establishment and operation, subject

to the sectoral guidelines of the Department of Space/ISRO, under the
government route.

Sector Policy
Satellite Communication Policy

THERMAL POWER
Reason to Invest
Government is targeting a capacity of 88.5 GW during 2012-17 & 86.4GW
during 2017-22.

Growth Drivers

Expansion in industrial activity to boost demand for electricity.

A growing population is likely to boost demand for energy.
Increasing market penetration and per-capita usage will provide
further impetus to the energy industry.
Large capacity additions (174.9 GW) are targeted upto 2022.

FDI Policy

100% FDI is allowed under the automatic route in the power sector,
subject to all the applicable regulations and laws.

Sector Policy

Electricity Act 2003

National Tariff Policy 2006

MEDIA AND ENTERTAINMENT

3rd largest TV market in the world.

800 TV channels.

Reason to Invest

India has a large broadcasting & distribution sector, comprising 800 TV channels,
6000 multi-system operator, 7 DTH operator.

Total market size of Indian entertainment industry growing by 11.8% over 2012.

Growth Drivers

Television and AGV

FDI Policy

Broadcasting Carriage Services

Broadcasting Content Services

Sector Policy

The Cable Television Networks (Regulation) Amendment Act

AUTOMOBILE

2.15 million vehicles produced by 2013-2014

Reason to invest

7% of the countrys GDP by volume

By 2015, India is expected to be the fourth largest
automotive market by volume in the world.

Growth Driver

Two-wheelers and three-wheelers are projected to

expand at a CAGR of 9% between 2013-20.

Sector Policy

Automatic approval for foreign equity investment up to

100% with no minimum investment criteria.

OIL & GAS

Reason to invest

4th largest consumer of crude oil and petroleum products in the world.
2nd largest refiner in Asia.

Growth driver

New Exploration Licensing Policy and the Coal Bed Methane Policy have
been put in place to encourage investments
Oil imports constitute over 80% of Indias total domestic oil
consumptions of May, 2014.

Sector policy

The government has decided to set up strategic storage of 5.03 MMT of

crude oil at 3 locations Visakhapatnam, Mangalore and Padur.
The Policy on Shale Gas & Oil, 2013 allows companies to apply for shale
gas and oil rights in their petroleum exploration licenses and petroleum
mining leases

IT & BPM

USD 118 Billion expected 2014 revenues.

Reason to invest

The IT-BPM sector constitutes 8.1% of the countrys GDP and contributes
significantly to public welfare.

Growth driver

The sector includes 600 offshore development centres (ODCs) of 78

countries.

Sector policy

National Policy on Information Technology 2012 aims to increase

revenues of IT and BPM industry to USD 300 Billion by 2020 and expand
exports to USD 200 Billion by 2020.
Allocation of INR 5 Billion for launching a pan-India programme Digital
India and a national rural internet and technology mission for services in
villages and schools, training in IT skills and E-Kranti for government
service delivery and governance scheme.

Live Projects
The project is featured in KPMGs 100 Most Innovative Global
Projects.
Delhi-Mumbai Industrial Corridor (DMIC) and it utilize the 1,483

km-long, high-capacity western Dedicated Railway Freight

Corridor (DFC) as the backbone.

Twenty four manufacturing cities are envisaged in the perspective

plan of the DMIC project

At Current Growth Trajectory, Indian Manufacturing will Significantly

Underperform NMP plan for 2022

NMPs Ambition of 25% share of manufacturing in GDP would require ~15%

growth of Manufacturing Sector

Manufacturing Sector Growth will Create Significant Employment

Generation

What is FDI?

Background...
Attempts were made to liberalize economy in 1966 and 1985. The first
attempt was reversed in 1967.
Second major attempt was in 1985 by Prime Minister Rajiv Gandhi.
The process came to a halt in 1987, though 1966 style reversal did not
take place.
In 1991,India was going through balance of payments crisis.In
addition, the IMF required India to undertake a series of structural
economic reforms.
So in 1991, then finance minister Manmohan Singh introduced new
neo-liberal policies and introduced India to the world trade

FDI Inflows in India

Immediate effects of Foreign

Investment..
The government started disinvesting in all of the government
owned companies, allowing private companies to take over like in
Banking sector, Telecom industry, IT industry...which significantly
improved the situation.
Right now,India has been ranked among the top 3 attractive
destinations for inbound investments.

Major Recent Policy

Measures
Government has eased FDI norms in 15 major sectors.

Townships, shopping complexes & business centres all allow up to

100% FDI under the auto route.
India's defence sector now allows FDI up to 49% under the automatic
route.
Manufacturers can now sell their products through wholesale and/or
retail, including through e-commerce without Government Approval.
Construction, operation and maintenance of specified activities of
Railway sector opened to 100% foreign direct investment under
automatic route.

SECTORS WITH
CAPS
Cable Networks (49%).
Broadcasting content services- FM Radio (26%), TV channels (26%).
Print Media (news and current affairs )(26%).
Aviation- scheduled air transport (49%), non-scheduled air transport
(74%).
Satellites- establishment and operation (74%).

Private Sector Banking-(74%).

Public Sector Banking (20%).
Commodity exchanges (49%).
Credit information companies (74%).

Share of top investing

countries -2015

Sectors with Restriction

Atomic Energy
Lottery Business
Gambling and Betting including casinos
Business of Chit Fund
Housing and Real Estate business (except development of townships,
construction of residen-tial/commercial premises, roads or bridges)
Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco
or of tobacco substitutes

Important Figures related to FDI

Share of top investing
countries FDI equity inflows
(April 2015 - June 2015)
(Amount Rupees in crores)

Sector attracting highest FDI

equity inflows (April 2015 June 2015) (Amount Rupees
in crores)

1.Singapore: 23,320
2.Mauritius: 13,236
4. USA: 3,959

1.Computer Software: 16,245

2.Automobile Industry: 6,914
3.Trading: 5,679
4.Services Sector : 4,036

5. Germany: 3,497

5. Telecommunications : 2,517

3.Netherlands: 4,123

6. Japan: 2,916

Ok, but how is it

good for me?
Have patience. All things are difficult before they become
easy.
-Saadi

Money
Loads of money will usher in the
sector.
A remarkable inflow of FDI in
various industrial units in India
boosts the economic life of country.
It provides an opportunity for
cash-deficient domestic retailers to
bridge the gap between capital
required and raised.

Struggling start-ups may also get

funding.

Improved technology and

logistics
With FDI, there could be a
complete overhaul of the
currently fragmented supply
chain infrastructure.
Transportation facilities get a
boost, in the form of increased
number of refrigerated vans
and pre-cooling chambers
which can help bring down
wastage of goods which is
excellent for the Farmers

More and Better Employment

Opportunities
The overall impact of modern retail
on the economy is immense. A
report by the Boston Consulting
Group showed that nearly three to
four million direct jobs will be
created while another four to six
million indirect jobs would be
available in the logistics sector,
contract labour in the distribution
and security staff in the stores.
This helps the Indian human
resource to find better quality jobs
and to improve their standard of
living and life styles on par with that
of the citizens of developed nations.

Boost Healthy Competition and

check inflation
The entry of the many multinational corporations obviously promises
intensive competition between the different companies offering their
brands in a particular product market (including domestic companies),
thereby resulting in availability of many varieties, reduced prices, and
convenient distribution of the marketing offers.
Healthy competition in the market is always good for the consumer.
Consumers in the organized retail have the opportunity to choose
between a numbers of internationally famous brands with pleasant
shopping environment, huge space for product display, maintenance of
hygiene and better customer care.
This will lead to more customer satisfaction.

Nothing is perfect, not

even FDI

POINTS AGAINST
FDI

Domination of Organized Retailers

Loss of jobs
Loss of Self Competitive Strength
Distortion of Culture
Rise in unethical practises

Conclusion
We are in the 21st century and we cant ignore the universal trends
easily. The co-operation is the key to success. FDI would lead to a more
comprehensive integration of India into the world market where India can
also make a strong position in global market by exporting their quality
products and services. Considering the inflation rise and economic
recession in India, FDI looks like something that can put a check on this
and provide some relief to the ailing economy.

MAKE IN INDIA
https://www.quora.com/Make-In-India-political-program-How-does-Makein-India-affect-the-Indian-Economy
http://www.nitinbhatia.in/views/make-in-india/
http://articles.economictimes.indiatimes.com/2014-0925/news/54318127_1_indian-railways-manufacturing-hub-manufacturing-sector
http://www.financialexpress.com/article/fe-columnist/data-drive-global-lessons-forindias-manufacturing/13782/
http://www.ibef.org/industry/manufacturing-sector-india.aspx