make in india

2. OVERVIEW
 Make in India campaign was launched by Prime Minister Mr.
Narendra Modi on 25th September 2014.
 It is a national program designed to transform India into global
manufacturing hub.
 The initiative is meant to cut red tape, spur foreign investment
and transform India into a vibrant economy.
 Twenty five sectors have been identified as priority areas
including Automobile, construction, Food processing, IT, Defence,
Aviation and many more.
 Introduction of 24/7 e-portal to address the industry concern
and get back to them 48-72 hours.
 It includes major new initiatives designed to facilitate investment,
foster innovation, protect intellectual property and built best in
class Manufacturing Infrastructure.

3. INCREASED INVESTMENT ACTIVITY
Increased incentive provided by Government includes:
 Investment allowance at the rate of 15% to
manufacturing that invest more than INR 1 billion in
plant and machinery
 Incentives available to unit setup in SEZ ,NIMZ and
EOU
 Exports incentive like duty drawback, Duty
exemption, focus product and market schemes
 Area based incentive like unit setup in north east
region, Jammu and Kashmir
 Sector specific incentives like M SIPS in electronics

4. DRIVERS
 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 Gross Domestic
Product to over $4.5 trillion by FY20

5. BARRIERS
Boost to Manufacturing
Sector
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 2013-14
Need to increase FDI From 2010 to 2012,the
country’s stock of FDI just totalled 12% of GDP while the developing
country average was 30%
Help in reviving Growth 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,$ 200billion of FDI would be needed
Loss share of manufacturing The current share of manufacturing sector to India’s GDP is only
15%.It compares poorly to other Asian nations
Lack of ease of doing business 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

6. SECTORS
 Automobiles
 Biotechnology
 Defence Manufacturing
 Food Processing
 Media and Entertainment
 Pharmaceuticals
 Renewable Energy
 Railways
 Oil and Gas
 Leather
 Aviation
 Textile and garments

7. SECTORS (CONTD)
 Wellness
 Ports
 Mining
 Ports
 Roads and Highways
 Thermal power
 Space
 Construction
 Electronic System
 IT and BPM

8. Sector Growth Driver Reason To Invest FDI Policy
Textile And
Garments
• Rising per capita income,
favourable 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
•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
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
•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

9. 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 augment growth.
•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
•100% FDI is
allowed under
automatic route
IT AND 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 registering13.5%
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
•Up to 100% is
permitted under
automatic route
Sector Growth Driver Reason To Invest FDI Policy

10. Automobile •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
•By 2015 India is
expected to be fourth
largest automotive mark
et volume in the world
•India’s car market has
the potential to grow
6+million unit annually
by 2020
•Emergence of large
automobile cluster
•An R&D:Strong support
from the government
•100% FDI is allowed in
automatic route
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
•Rich agricultural
resource base
•Low cost 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
rupees100% FDI is
permitted in automatic
route for most product
100% FDI is permitted in
automatic route for most
product
Sector Growth Driver Reason To Invest FDI Policy