Industrial development and key

growth drivers behind their

success

Presented by-
Aakriti warikoo
Ayushi Khandelwal
Navpreet Singh
Hisham Mani
Rishabh
Introduction

Secondary activities or manufacturing change raw

materials into products of more value to people.
Industry refers to an economic activity that is
concerned with production of goods, extraction of
minerals or the provision of services.
Industries may be agro , mineral , marine, food,
automotive, IT based Etc. depending on the type of
raw materials they use.
EIU Report on Indian
Industrial sector
India can be a China-like global growth powerhouse
of 2020s, but it needs to address several challenges
including infrastructure and gender gap to realise the
potential, Economist Intelligence Unit
Basic skills and education are at a much lower level
than they were in China in 2001, when its
manufacturing sector globalised. There is a huge
gender gap -- narrowing in the case of education for
girls, but still wide in employment.
A long-standing electricity deficit and massive
infrastructure needs from urbanisation are also key
challenges,
 On positive side, India has one thing that China has --
the potential to be of interest as a huge market in its
own right, as well as a base for export manufacturing.
One thing holding that back is the maze of state-level
regulations and the lack of a truly national single
market. While state-based competition can be
beneficial, as those states with the will can move
faster, those barriers will need to be removed for India
to really capitalise on its potential.
Government wants to increase the manufacturing
output to 25 percent of GDP by 2022, with the
creation of 100 million jobs.
To expand its industrial base, India will need to
accelerate and implement reforms to improve
conditions for business and attract investment.
At the same time, companies will need to engage
actively with trends such as high-quality
manufacturing, smart manufacturing practices,
automation and the Internet of Things (IoT).
 With industrialisation, India will need to accelerate the
expansion and upgrading of its energy sector. The
country already imports 75 per cent of its oil and faces
persistent shortfalls in power supply and the challenges
will become even greater given that manufacturing is
much more energy intensive than the services sector.
In order to sustainably develop its power sector, India
needs to diversify its energy mix. The government has
pledged that non-fossil-fuel energy sources will make
up 40 percent of its electricity generation capacity by
2030.
India's urban population has grown by 150 million
since 1990 and the Organisation for Economic
Cooperation and Development (OECD) predicts that
it will grow by another 500 million by 2050.
Without appropriate planning, say the authors of the
EIU report, the pressure on India's resources, including
land, water and clean air, will intensify.
Key Growth Drivers for Top
Indian Industries
AUTOMOTIVE INDUSTRY

INTRODUCTION
7th largest vehicle producing nation
in the world
From $36 billion in 2010 to $115
billion by 2016
GROWTH DRIVERS

Cost Competitiveness
Easier financing schemes
New Brand Launches

FORECAST

The automobile industry is estimated

to triple in the next 5 years
 FOOD PROCESSING
INDUSTRY
INTRODUCTION

Processed food exports from India

constituted 1.5% of the global food
trade.

GROWTH DRIVERS
Socio-economic changes across
Indias population base
Changing and evolving lifestyle
trends
FORECAST
The size of the food processing
industry in India is estimated to reach
US$ 105 billion by 2020
HEALTHCARE INDUSTRY
INTRODUCTION

The healthcare sector size measured

$46 billion

GROWTH DRIVERS

Indias booming population

Increased disposable income
Increasing penetration of health
insurance coverage

FORECAST

Expected to reach $80 billion by the

end of 2020
 IT & ITES INDUSTRY
INTRODUCTION

Combined revenues of $70.5 billion

Highly growing sector

GROWTH DRIVERS
Worldwide technology related
services grew at 3.3% to reach around
$1.56 trillion
Global IT vendors increasing their
India presence
Emergence of Indian IT
multinationals
FORECAST
Estimated to grow at 18% CAGR
ENTERTAINMENT INDUSTRY
INTRODUCTION

The FM radio is one of the fastest

growing segments
India is the largest producer of
movies in the world with approx
1,000 films released annually

GROWTH DRIVERS

Favorable demographics: <52% of the

population under 25 years of age

FORECAST
Industry expected to grow at 12.6%
 RETAIL INDUSTRY
INTRODUCTION
51% FDI allowed in single brand
retail
The retail industry measured USD
600 billion
2nd largest employer after agriculture
GROWTH DRIVERS
Fast growing middle class population
Increased disposable income
Changing & evolving lifestyle trends
FORECAST
Projected to grow at 13% and reach
$890 billion by 2020
TEXTILES INDUSTRY
INTRODUCTION

Accounts for 4% of GDP

The textile finishing machinery
import growth was 38%

GROWTH DRIVERS

Increased propensity of consumption

Increasing disposable income

FORECAST

Potential to increase its textile and

apparel share and reach $80 billion by
2020
 TELECOMMUNICATIONS INDUSTRY
INTRODUCTION
Growth of over 25 % for the last three
years
Number of mobile subscription 771
million
GROWTH DRIVERS
High growth in broadband penetration
Launch of LTE services is expected to
raise data revenues
FORECAST
Revenues are projected to reach US$
70 billion by 2020
INSURANCE INDUSTRY
INTRODUCTION

FDI up to 26% is permitted in the

insurance sector

GROWTH DRIVERS
Increasing working population &
rising household savings
Favorable government initiatives
Entrance of International players &
health insurers
FORECAST
Potential to become a US$ 8.9 billion
industry by 2020
Make In INDIA
 Make in India Campaign
Objective

Ultimate objective is to make India a renowned

manufacturing hub for key sectors. Companies across
the globe would be invited to make investment and
set up factories and expand their facilities in India
Using Indias highly talented and skilled manpower to
create world class zero defect products.
The purpose of Make in India Campaign-
1. Job Creation
2. Economic Development
3. Global Recognition
Mission
Manufacture in India and sell the products worldwide.
Lets Move On to Major

25 Sectors
25 Key Sectors
When It was Announced?

Indias honorable prime minister Shri. Narendra Modi

will make an short investment pitch at Vigyan Bhavan
Convention Center in New Delhi on 25th Sep. 2014.
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%
 How this would be achieved?

Skill development programs would be launched especially for

people from rural and poor ones from urban cities.
25 key sectors have been short listed such as telecommunications,
power, automobile, tourism, pharmaceuticals and others.
Individuals aged 15-35 years would get high quality training in the
following key areas such as welding, masonries, painting, nursing
to help elder people.
Skill certifications would be given to make training process, a
standard. Currently manufacturing in India suffers due to low
productivity rigid laws and poor infrastructure resulting in low
quality products getting manufactured.
Over 1000 training centres would be opened across India in the
next 2 years.
Benefits from Make In India
Campaign
This will help in creating job market for over 10 million
people in India
Manufacturing done here would boost Indias GDP,
trade and economic grow
Industrial sector growth
Top Corporate Companies
Attended Make In India
Campaign:
Tata Group
Reliance Industries
Biocon
Samsung
Honda
Airbus
Wipro
Vodafone
Top 2 Reasons: Why Make in
India is positive for markets,
economy..?
"We should manufacture goods in such a way that
they carry zero defects, so that our exported goods
are never returned to us. We should manufacture
goods with zero effect that they should not have a
negative impact on the environment" PM Modi said in
his speech on 68th Independence Day.
Here is the collated a list of stocks from various sectors,
which are likely to benefit as India marches forward on
the growth map:

Infrastructure sector: Larsen and Toubro, IRB Infra and Adani Ports
should be the key beneficiaries of policy moves on building
transport infrastructure
Power Sector: Power Grid Corp should be the biggest beneficiary
of the second generation reforms in the power sector
Banking: Axis Bank, ICICI Bank, SBI, PFC and REC should be the
key beneficiaries of India's big infra opportunity, given their
domain expertise in Infra financing.
Oil & Gas: ONGC is set to emerge as the biggest beneficiary of
the dramatic reduction in fuel subsidy over the next five years.
Metals & Mining: Tata Steel, JSW Steel and UltraTech should be
key beneficiaries of India's move to materials intensive growth.
Second Reason- Need to
increase FDI
Each 1 per cent increase in FDI adds about 0.4 per
cent to a country's GDP growth. So, to boost GDP
growth by about 2 per cent, India will need about 5
per cent increase in FDI.
Conclusion

Many of the building blocks are in place for India to

transition to the next level of growth and
development.
At the same time, the country faces significant
constraints on growth, especially in terms of
implementing the necessary reforms and gaps in
infrastructure.
Taken together, the EIU expects economic growth in
India to average 7 percent a year until 2018, and then
to accelerate to 8.5 percent in 2019/20, making India
the world's fastest growing large economy.