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2 OBJECTIVES  Make In India Launched  Sectors In Focus Make In India  New Initiatives By GOI  Make in India Campaign  Hindrance In Make In India Sectors  Critical Disapproval  New Policy Need To Be Addres s.

3 LAUNCHED  Launched on 25 September 2014,in Vigyan Bhawan, New Delhi.  Prime Minister of India, Narendra Modi launches it in front of top global CEO’s.  Most favored quote, “FDI for me is First Develop India and then Foreign Direct Investment”

4 SECTORS IN FOCUS 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

5 IMPROVISED FOREIGN DIRECT INVESTMENT 100% FDI allowed in the telecom sector. 100% FDI in single-brand retail. FDI in commodity exchanges, stock exchanges & depositories, power exchanges, petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route. Removal of restriction in tea plantation sector. FDI limit raised to 74% in credit information & 100% in asset reconstruction companies. FDI limit of 26% in defence sector raised to 49% under Government approval route. Foreign Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also allowed on a case to case basis with the approval of Cabinet Committee on Security. Construction, operation and maintenance of specified activities of Railway sector opened to 100% foreign direct investment under automatic route.

6 NEW INITIATIVES INITIATED BY GOI Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through eBiz portal. Validity of Industrial license extended to three years. Major components of Defence products’ list excluded from industrial licensing. Dual use items having military as well as civilian applications deregulated. Services of all Central Govt. Departments & Ministries will be integrated with the eBiz – a single window IT platform for services by 31 Dec. 2014. Process of obtaining environmental clearances made online. All returns will be filed on-line through a unified form. A check-list of required compliances should be placed on Ministry’s/Department’s web portal.

7 OPPORTUNITIES ACROSS THE VALUE CHAIN Public Private Partnership Contractors /Consultant s Equipment suppliers Financing

8 PHARMACEUTICAL  Investment Attributes 3rd largest pharmaceuticals market by 2020. 20% of global exports in generics.  Growth Drivers The country’s pharmaceuticals industry accounts for about 2.4% of the global pharma industry by value and 10% by volume. India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020. India is the sixth largest market globally in terms of size.  FDI Policy 100% FDI is allowed under the automatic route for greenfield projects.  Sector Policy The National Pharmaceutical Pricing Policy, 2012 (NPPP-2012) has been notified on December 7, 2012.

9 CONDITIONS OF PHARMACEUTICAL SECTORS  CONDITIONS OF PATENT & IPR 1. Indian companies are poor on IPR 2. Too costly for most in India 3. Favor's only the rich 4. IPR scenario is favorable to MNC’s 5. Indian Universities are low on IPR’s 6. Conversion rate is a poor 4% 7. India is not likely to benefit by the IPR regime

10 THERMAL POWER Investment Attributes 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

11 HINDRANCE IN THERMAL POWER SECTOR  A Thermal power project is not given the go-ahead until it has access to coal.  Selecting a proper site for a thermal power plant is vital for its long term efficiency and a lot many factors come into play when deciding where to install the plant.  Guidelines for site selection of coal-based thermal power stations set by the MoEF  Locations of thermal power stations are avoided within 25 km of the outer periphery of the following: Metropolitan cities  National park and wildlife sanctuaries  The INR 8,000 crores project was struck for almost three years as a change of government in West Bengal jeopardized the company's land acquisition plans.

12 MEDIA AND ENTERTAINMENT 3rd largest TV market in the world. 800 TV channels.  Investment Attributes 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

13 HURDLES IN MEDIA AND ENTERTAINMENT  Censorship Regulation- Bollywood is the second largest movie production industry in the world. Modi government had banned more than 10 movies after getting into power this action of (GOI) will hinder producers & distributors in the near future.  Piracy – Piracy & copyright exceeded in the past due to government negligence in keeping the law less administering. The Law need to be implied strongly on the pirates, which will curb down the rates of piracy in India.

14 AUTOMOBILE 2.15 million vehicles produced by 2013-2014  Investment Attributes 7% of the country’s 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.

15 HURDLES IN AUTOMOBILE SECTOR  To create jobs for the nearly 10 million workforce that enters the market every year, the country needs to move away from services driven model to a labor intensive manufacturing driven growth.  Labor law reforms- The Industry has been plagued by high incidence of strikes due to outdated labor laws. These were for long considered to be the flash point between automotive companies and their labor force, but reforms could change this scenario in the days ahead.  Political interests, land disputes etc. Ex. TATA NANO -Singur case.

16 OIL & GAS  Investment Attributes 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 India’s 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

17 PROBLEMS FACED BY OIL & GAS The oil and gas industry in India currently faces talent shortage: Our study suggests the industry is likely to require around 25,000 additional professionals in the next five years due to business growth and retirement or attrition in the sector.  Aging workforce is a cause of concern: In line with the global trend, the average age of the workforce in the Indian oil and gas sector is high. Around 50% of employees have more than 20 years of experience, and the majority is due to retire in the next 5–10 years.

18 IT & BPM USD 118 Billion –expected 2014 revenues.  Investment Attributes The IT-BPM sector constitutes 8.1% of the country’s 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.

19 CHALLENGES IN IT & BPM  The first major problem that the Indian IT firms have started to face in recent times is that they are now subject to different legal laws and norms.  Each country has its own set of rules. For example not recruiting older employees was fine in India. But they can no longer reject people on the grounds of their age.  A case in point is the recent lawsuit filed against Infosys, wherein an individual alleged that the company declined employment to him just on the grounds that he was old.  While Infosys has reiterated that they do not discriminate on age, however, they were unable to give a plausible reason for rejection.  The frequent power outages, poor traffic management, political instability in the form of strikes and shutdowns all take a toll on the operations of the BPO firms.

20  CRITICAL DISAPPROVAL OF MAKE IN INDIA  Whether Make in India is made for consumers within India or outside is not so relevant. The principle today says that consumers across the world likes to purchase products which are cheaper and are of good quality  India ranks low on the "ease of doing business index.  Labor laws in the country are still not conducive to the Make in India campaign. This is one of the universally noted disadvantages of manufacturing and investing in India.  India's ailing infrastructure scenario and defunct logistics facilities make it difficult for the country to achieve an elite status as a manufacturing hub.  Lack of robust transport networks, and widespread corruption makes it difficult for manufacturers to achieve timely and adequate production.

21 NEW POLICY NEEDS TO ADDRESS  Insolent Control- Trading or Imports of goods for mass consumption, especially in the food, consumer goods, electrical products and light engineering goods needs to be controlled. Chinese consumer goods flood Indian markets since importers presently do not have to take FDA permission.  Introducing Land Acquisition bill-The UPA government created the biggest bottleneck with its land acquisition bill, which makes the land so expensive that it cannot be acquired for manufacturing. The only place land is available is in places that are uninhabited or barren, and this does not make manufacturing attractive for labor. CONTD…..

22  Tax Policies Resuscitate – India subjects capital gains tax on profits made on FDI but does not levy capital gains tax on profits made by FIIs when they sell on the stock market — while it can be clearly said FDI is a superior investment. The US, UK, Singapore and other countries encourage FDI by not taxing capital gains on sale of shares. India should do the same.  Retaining Talent - Microsoft, Google, Apple and others are what they are today because of no mean contributions of Indians in those firms. You invite outsiders to ‘Make in India’ but insiders go out to ‘make world class companies’. Mr. Modi would do well to ensure that home-grown talent stays in India as well.