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INDIA
• India is one of the world's fastest-growing
economies.
• The tenth-largest in the world by nominal
GDP and the third-largest by purchasing
power parity (PPP).

Where are we?
• India has been recording sustained trade
deficits since 1980 mainly due to the high
growth of imports, particularly of crude oil,
gold and silver.

What we are import ?
• India is heavily dependent on crude oil imports, with
petroleum crude accounting for about 34 percent of
the total imports.
• The country also imports: gold and silver (12 percent
of the total imports), machinery (10 percent),
electronic goods (7 percent) and pearls, precious and
semi-precious stones (5 percent).
• India’s main import partners are China (10.7 percent of
the total shipments), United Arab Emirates (8 percent),
Saudi Arabia (7 percent), Switzerland (7 percent) and
the United States (5 percent).

Imports & exports
A. EXPORTS (Receipts)
Exports during October, 2014 were valued at US $
12146 Million (Rs. 74505.99 Crore).
B. IMPORTS (Payments)
Imports during October, 2014 were valued at US $
5942 Million (Rs. 36449.42 Crore).
C. TRADE BALANCE
The trade balance in Services (i.e. net exports of
Services) for October, 2014 was estimated at US
$6204 Million.

On independence day 2014
• Invited global companies to pick India to locate
factories, promising to replace red tape with red-
carpet welcomes.
• To make India break into the top 50 in the World
Bank’s ease of business index ranking from the
current 134th position.

What is Make in india ?
• Make in india is an international marketing campaigning
slogan coined by Narendra Modi, The prime minster of
india on 25th september 2014 to attract businesses from
around the world to invest and manufacture in india.
• Make In India is a new national
program designed to transform
India into a global manufacturing hub
• Through Make In India initiative
government will focus on buildin
gphysical infrastructure as well as
creating a digital network.

Major Objectives
• 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

Focus on different sectors
• The focus of “make in India” program is on creating jobs and
skill enhancement in 25 sectors

Sector wise contribution on GDP
• Manufacturing contributes 17% of India’s GDP compared to 69% that comes from
services and 14% from agriculture
• And, of the 474 million Indians who are gainfully employed, only 100 million do
manufacturing jobs compared
to 232 million who work on farms and 142 million employed in the services
businesses
• Between 2004 and 2011 manufacturing sector has
registering annual growth of around 7.25 per cent
14%
17%
69%
SECTORAL COMPOSITION OF
INDIA GDP
AGRICULTURAL INDUSTRIAL SERVICE

Automobile sector
Passenger Vehicle are to increase at a CAGR of 16% between 2013-20
Growing Working Population and expanding middle class
Increasing disposable income in rural agri-sector
Favourable government policies like lower excise duties, automotive mission plan
Easy finance schemes owing to which the auto finance industry has grown at the
rate of 13% between 2008-13
 Growth Driver
By 2015 India is expected to be fourth largest automotive market volume in the
world
India’s car market has the potential to grow 6+ million unit annually 2020
Emergence of large automobile cluster
An R&D: Strong support from the government
 Reason to invest
100% FDI is allowed in automatic route
 FDI policy

IT & BPM
Revival in demand for IT services from US and Europe
Increasing adoption of technology and telecom by customers
High value client additions bigger than USD 1 million registering 13.5%
growth
The IT-BPM sector contributes 8.1% of the country GDP
India’s IT industry amounts to 7% of global market
Rapidly growing urban infrastructure has fostered several IT centres
Upto 100% is permitted under automatic
route
 Growth Driver
 FDI policy

Food processing
Liberalization and growth of organized retail
Rising income level and growing middle class
Favourable economic and cultural transformation and shift in attitudes and lifestyle
A rich agricultural resource base
A low cost of skilled manpower
Attractive fiscal incentives by state and central government in the form of
subsidies, Tax rebates etc
42 mega food parts are setup in PPP at an investment of 98 billion rupees
100% FDI is permitted in automatic route for most product
 Growth Driver
 FDI policy

Textile and Garments
Rising per capita income ,favorable demographics and shift in preference for
branded products
Increase in domestic demand is set to boost cloth production
Favourable policies of government of India
Expansion of retail sector with many global players entering the market
 Growth Driver
Second largest manufacturing capacity globally
Accounts for 14% of world production of textile fibre and yarn
Abundant raw materials and increasing demand for exports
Increased penetration of organized retail
100% FDI is allowed in automatic route
 FDI policy

Road and highways
An outlay of USD 3.8 billion for the highway sector has been provided in
2013-14
The GOI aims to develop a total of 64340 Kms of national highways
Under various programmes
The rise in four wheeler and two wheeler vehicle ,Increasing freight traffic,
strong trade will augument growth
 Growth Driver
The transport sector constitutes 6% of country GDP and 70% share of road sector
Emergence of private sector as a key player
Establishment of major initiatives by GOI to upgrade highways in the country
 FDI policy
100% FDI is allowed under automatic route

Construction
India has a housing shortage of 65 million dwelling units
Introduction of new urban development mission which will help in
the development of cities
 Growth Driver
An investment of USD 1000 billion has been projected for infrastructure
sector
Ease access to funding for the sector
Construction activities contribute more than 10% of India’s GDP
Different levels of FDI based on different
parameters
 FDI policy

INDUSTRY POTENTIAL
I
58.5
145
0
20
40
60
80
100
120
140
160
2011 2016year
Automobile
Billion
67
100
0
20
40
60
80
100
120
2013-14 2016-17
Industry
size
Year
Textile and garment
78
140
0
20
40
60
80
100
120
140
160
2013 2017
Real estate market
USD billion
The total turnover of automobile sector in
2010-11 was USD58.5 billion ,turnover by
2016 is slated to be USD 145 billion
The domestic textile and apparel industry
in India is estimated to reach USD 100
billion by 2016-17 from USD 67 billion in
2013-14
As per the industry estimate ,the Indian
Real estate market is estimated to be USD
78billion in 2013 and is expected to grow
to USD 140 billion

Drivers assumption
 Development of industrial cluster and new smart cities will foster India’s manufacturing
infrastructure and innovation capacity
 India’s high value industrial sectors-Defence ,Construction and railways are now open to global
participation
 Policy in Defence sector liberalised and FDI cap raised from 26% to 49%
 100% FDI under automatic route permitted in construction ,operations and maintenance in
specified rail infrastructure projects
 Opportunity for domestic companies having leadership in innovation and technology to turn
themselves into a global champions
 Increasing Venture capital and private equity activities will further provide the impetus to the
domestic companies
 Implementation of major reforms could push India’s Gross Domestic Product to over $4.5
trillion by FY20
 Sme’s contribute 90% of all industrial units and 40% export within the manufacturing sector
 According to Justin Lin ,A former chief economist at the world bank, China will
shed 85 million manufacturing jobs in the next few years because of the fast rising
wages. India can attract some of these jobs if it can cut bureaucratic hurdles that
scare away new business.

Process of applying to industrial licence made online on 24X7 basis
through e-biz portal
Services of all central government will be integrated with the E-biz
Validity of industrial licence extended to three years
All return should be filed online through a unified form
Doing business in India just got easier-new delicencing and deregulation measures are
reducing complexity, and significantly increasing speed and transparency
Ease of Doing Business

Barriers
• The manufacturing sector has performed poorly by recording a expansion of
barely 1.1% growth in 2012-13 followed by a contraction of 0.7% in 2013-14Boost to Manufacturing sector
• From 2010 to 2012,the country’s stock of FDI just totalled 12% of GDP while
the developing country average was 30%Need to increase FDI
• The growth has continued to slow down and has been running below 5% for
the last 2 years .For a massive increase in the growth rate by 4% to GDP,$ 200
billion of FDI would be needed
Help in reviving growth
Low share of manufacturing
Lack of ease of doing business
The current share of manufacturing sector to India’s GDP is only 15%.It compares
poorly to other Asian nations
India ranks 134th out of 189 countries in World Bank ease of doing business
Index.The world bank report notes that it takes 27 days to start a business in India.In
Singapore it takes two and a half days

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