Make In India
Government of India launched "Make in India" - an initiative to encourage multi-national, as well as national companies to manufacture their products in India. It was launched by Prime Minister Narendra Modi on 25 September 2014. India emerged, after initiation of the program in 2015 as the top destination globally for foreign direct investment, surpassing the United States of America as well as the People's Republic of China. In 2015, India received US$63 billion in Foreign Direct Investment. The Make in India initiative has been built on layers of collaborative effort inviting participation from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners.
- Various sectors have been opened up for investments like Defence, Railways, Space, etc. Also, the regulatory policies have been relaxed to facilitate investments and ease of doing business.
- Six industrial corridors are being developed across various regions of the country. Industrial Cities will also come up along these corridors.
- Today, India’s credibility is stronger than ever. There is visible momentum, energy and optimism. The initiative is opening investment doors. Multiple enterprises are adopting its mantra. The world’s largest democracy is well on its way to becoming the world’s most powerful economy.
Make In India - Sectors
Make In India – Automobile Sector Highlights
- Sixth largest producer in the world with an average annual production of 24 million vehicles in 2016.
- India has the fifth largest passenger vehicle and commercial vehicle market.
- The Presence of four large auto manufacturing hubs across the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru- Hosur in the south and Jamshedpur-Kolkata in the east.
- Contributes to 7.1 % of India’s Gross Domestic Product (GDP) by volume.
- Six million-plus hybrid and electric vehicles to be sold annually, by 2020.
- Two-wheeler production has grown from 8.5 million units annually to 15.9 million units in the last seven years.
- Global car majors have been ramping up investments in India to cater to growing domestic demand. These manufacturers plan to leverage India’s competitive advantage to set up export-oriented production hubs.
- A Research & Development (R&D) hub: strong support from the government in the setting up of National Automotive Testing and R&D Infrastructure Project (NATRiP) centers. Private players such as Hyundai, Suzuki, GM are keen to set up an R&D base in India.
- Electric cars are likely to be a sizeable market segment in the coming decade.
Make In India – Automobile Components Sector Highlights
- Size of the Indian Auto Component Industry is around USD 39 billion (2015-16) and contributes 2.3% to India’s Gross Domestic Product (GDP).
- Auto Component Industry registered a Compound Annual Growth Rate(CAGR) of 14% during 2006-16, during the same period exports increased from USD 3.2 billion to USD 10.81 billion
- In the last financial year, the auto component exports contributed 4% to India’s overall exports.
- Surpassed Automotive Mission Plan (AMP) 2016-26 turnover target of USD 31.84 billion in FY 2016 by registering USD 39 billion.
- Aims to achieve 5 times growth with a turnover of USD 200 billion, exports targets between USD 70-80 billion and an investment of USD 30-40 billion by 2026.Aftermarket sector growing at a CAGR of 12% annually.
- A growing working population and an expanding middle-class are expected to remain key demand drivers.
- The presence of a large pool of skilled and semi-skilled workforce and a strong educational system.
- Increased investments in R&D operations and laboratories, which are being set up to conduct activities such as analysis, simulation and engineering animations.
- A spur in demand for auto components.will reduce excise duties in the motor vehicles sector.
- The growth of global Original Equipment Manufacturers (OEMs) sourcing from India and the increased need of global OEMs are turning the country into a preferred designing and manufacturing base.
Make In India – Aviation Sector Highlights
- India is ninth largest civil aviation market.
- Passenger traffic : 224 million during 2016.
- India is expected to have 60 million international passengers by 2017.
- 81 international airlines connecting over 40 countries.
- India is projected to be the third largest aviation market by 2020.
- Indian carriers are expected to have possessions of 800 air crafts by 2020.
- The industry is experiencing dramatic growth which includes the emergence of Low Cost Carriers (LCC) / new carriers to a growing middle-class ready to travel by air as well as growth in business and leisure travel.
- Greater focus on infrastructure development; increasing liberalization – Open Sky Policy; AAI driving modernization of airports, Air and Navigation Systems.
- Growth in aviation is also increasing demand for MRO (maintenance, repair and overhaul) facilities.
- India is home to large scale collaborations/ Merger & Acquisitions (M&A) deals – Etihad Airways & Jet Airways, Tata Group & Singapore Airlines, Tata Group & AirAsia.
- India plans to increase the number of operational airports to 250 by the year 2020.
Make In India – Biotechnology Sector Highlights
- India is among the top 12 biotech destinations in the world and ranks third in the Asia Pacific.
- India has the second highest number of United States Food & Drug Administration (USFDA) approved plants.
- No.1 producer of Hepatitis B vaccine recombinant.
- Indian biotech industry shall touch USD 100 billion by 2025.
- Large consumer base with increasing disposable income.
- Special purpose organisation such as Biotechnology Industry Research Assistance Council (BIRAC), a Public Sector Undertaking of Department of Biotechnology, to suppose industry through funding, mentoring, handholding and infrastructure support.
- The setting up of national research laboratories, centers of academic excellence in biosciences, several medical college, educational and training institutes offering degrees and diplomas in biotechnology, bio-informatics and biological sciences.
- Fast developing clinical capabilities with the country becoming a popular destination for clinical trials, contract research and manufacturing activities.
- Establishment of industry oriented organization – BIRAC to support biotech start ups and SMEs through funding, mentoring, handholding and infrastructure support.
Make In India – Chemicals & Petroleum Sector Highlights
- Seventh largest producer of chemicals worldwide and third largest producer in Asia. (by output)
- The estimated size of Indian chemicals sector stands at approximately USD 139 billion.
- Fourth largest global producer of agro chemicals.
- Total production of the major chemicals including petrochemicals was 23.9 million tons during 2015-16 while production of polymers stood at around 9 million tons.
- Chemicals sector also acts as a key enabling industry and provides support for variety of other sectors like agriculture, construction, leather etc.
- The chemicals industry is a key constituent of the Indian economy, accounting for about 1.38% of the nation’s GVA (Gross Value Addition) in 2013-14.
- India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, makes for economies of scale.
- Polymers and agro-chemicals industries in India present immense growth opportunities.
- 100% FDI permitted through automatic route also chemicals sector is delicensed except for few hazardous chemicals.
- Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) & Plastic Parks will provide state-of-the-art infrastructure for Chemical & Petrochemicals Sector.
- Trade in most of the chemicals is free except for those attracting provision of international conventions.
Make In India – Construction Sector Highlights
- USD 1 Trillion investments for infrastructure sector projected during 2012-17
- USD 650 Billion investments in urban infrastructure estimated over next 20 years.
- 100% Foreign Direct Investment (FDI) permitted through the automatic route for townships, cities.
- Construction sector contributes towards 8% of the Indian GDP (at constant prices). Last five year estimates (2006-07 to 2010-11).
- 100 Smart Cities and 500 AMRUT Cities will invite investment of 2 Trillion Rupees in the next five years.
- INR 62,009 Crore. would be invested under Swachh Bharat Mission (SBM) in urban areas.
- Construction sector in India will remain buoyant due to increased demand from real estate and infrastructure projects.
- An investment of USD 1 Trillion has been projected for the infrastructure sector until 2017, 40% of which is to be funded by the private sector. 45% of infrastructure investment will be funneled into construction activity and 20% set to modernize the construction industry.
- The industry contributes more than 8% of India’s GDP.
- USD 650 Billion will be required for urban infrastructure over the next 20 years.
- Some of the large government projects offer significant up-side thrust.
- 70% of the funding under SBM will be mobilised largely from private sector.
Make In India – Defense Manufacturing Sector Highlights
- India has the third largest armed forces in the world.
- The allocation of Defense in the India’s union budget is approx $ 34.53 billion and 31.1% of the defense budget is spent on capital acquisitions.
- 60% of defense related requirements are met by imports which offer a huge opportunity for import substitution.
- Provision for Maintenance TOT (Transfer of Technology) to Indian Industry partners.
- Provisions to allow foreign OEM (Original Equipment Manufacturer) to select Indian Production agency.
- Requirement of minimum indigenous content has been enhanced/rationalised.
- New category of capital procurement – Buy Indian —IDDM (Indigenously Designed, Developed and Manufactured) introduced to encourage indigenous design, development and manufacturing of defense equipment.
- Favorable government policy which promotes self-reliance, indigenization, technology up gradation and achieving economies of scale including development of capabilities for exports in this sector.
- The country’s extensive modernization plans with an increased focus on homeland security and India’s growing attractiveness as a sourcing hub.
- India’s current requirements on defense are catered largely by imports.
Make In India – Electrical Machinery Sector Highlights
- Market growth in past 10 years – 11.6%
- Domestic Power Equipment industry growth in past 10 years – 11.9%
- Export growth in past 10 years – 18.6%
- Major Electrical Equipment industry growth in past 10 years – 8.3% & in past 5 years – 4%
- Estimated market value is expected to reach USD 100 billion by 2022.
- Incentives for capacity addition in power generation will increase the demand for electrical machinery
- Indian manufacturers are becoming more competitive with respect to their product designs, manufacturing and testing facilities
- A large pool of human resources and adequate workforce available
- Increasing scope for direct exports to neighbouring countries
- Investments in research and development in the electrical machinery industry are amongst the largest in India’s corporate sector
- A comparative advantage in terms of manufacturing costs, market knowledge, technology and creativity
Make In India – Electronic Systems Sector Highlights
- India is one of the largest markets for Electronic Systems in the world and is anticipated to reach USD 400 billion by 2020.
- The electronic systems Sector is expected to grow at a projected CAGR of 26% for the period 2014-2020
- India has the 4th Largest Start up ecosystem in the world.
- Several government driven initiatives and incentives like – Electronics Development Fund (EDF), Electronics Manufacturing Clusters (EMCs) scheme, National Knowledge Network & National Optical Fibre Network.
- 100% FDI is allowed through automatic route. Foreign Direct Investment (FDI) is allowed under the automatic route in the ESDM sector and is subject to all applicable regulations and laws.
- The government is promoting development of electronics manufacturing clusters throughout the country to provide world class infrastructure and facilities.
- An opportunity for import substitution as 65% of the current demand for electronic products are met by imports.
- Major government initiatives like Digital India and Make in India and supportive policies including favourable FDI policies for electronics manufacturing.
Key Drivers for Growth
- India has huge domestic demand and rising disposable income. Also there is a huge consumption of electronics products in the Middle East and in emerging markets such as North Africa and Latin America.
- Favorable government Policies :
- Modified Special Incentive Package Scheme (M-SIPS)
- Electronics Manufacturing Clusters Scheme (EMC).
- Skill Development Schemes.
- Existing R&D capabilities can be encouraged to develop ‘Made in India’ products and generate local IP.
- Center of Excellence for IoT was set up at NASSCOM Bengaluru to promote start-up in IoT.
- Rising manufacturing costs in other major manufacturing economies.
Make In India – Food Processing Sector Highlights
- 194.39 million Hectares of Gross Cropped Area in 2012-13(P)
- 66.10 million Hectares of Net Irrigated Area in 2012-13(P)
- 127 agro-climactic zones
- 42 mega food parks being set up with an allocated investment of USD 2.38 billion.
- India ranked 12th in the World in exports of food and food products in 2015.
- Major industries constituting to the sector are grain milling, sugar, edible oils, beverages, fruits & vegetables processing and dairy products.
- The contribution to the Gross Value Addition (GVA) in 2014-15 amounts to USD 22 billion at 2011-12 prices. In 2014-15, GVA in food processing grew by 5.78%
- The share of Food Processing Sector in GVA of manufacturing sector was 8.6% in 2014-15
- Investment in fixed Capital in registered food processing sector had grown from USD 24.5 billion in 2012-13 to USD 25.85 billion in 2013-14, making a growth rate of 6%
- The number of registered food processing units has increased from 37,175 in 2012-13 to 37,445 in 2013-14.
- Food processing industry is one of the major employment intensive segments contributing 11.69% of employment generated in all Registered Factory sector in 2013-14.
- 100% FDI is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
Key Drivers for Growth
- Liberalization and the growth of organised retail has made the Indian market more attractive for global players; with a large agricultural resource base, abundant livestock and cost competitiveness, India is fast emerging as a sourcing hub of processed foods
- Rising income levels, affluence and a growing middle-class. One-third of the population will be living in urban areas by 2020 increasing desire for branded food as well as increased spending power.
- Favorable economic & cultural transformation, shift in attitudes & lifestyles, consumers are experimenting with different cuisines, tastes and new brands. There is an increase in awareness and concern for wellness and health, high protein, low fat, wholegrain and organic food.
Make In India – IT and BPM Sector Highlights
- India is ranked as the 3rd largest tech based start-up hub in the world with over 4200 start-ups in the country.
- IT-BPM sector accounts for largest share in total Indian services export (45%).
- IT-BPM sector accounts for 56% of the total global outsourcing market.
- 640 offshore development centers in more than 80 countries.
- Indian IT & BPM industry is expected to grow to USD 300 billion by 2020.
- IT – BPM sector constitutes ~ 9.3% of India’s GDP.
- IT-BPM is the largest private sector employer – delivering 3.7 million jobs.
- Rapidly growing urban infrastructure has fostered several IT centers in the country.
- Favorable government policies and incentives to facilitate investments in IT sector.
- Presence of skilled manpower, India is home to a large number of IT professionals.
- The IT industry has more than 16000 firms; of which 1000+ are large firms with over 50 delivery locations in India.
- The IT-BPM industry is the largest private sector employer – delivering 3.7 million jobs.
Key Drivers for Growth
- Emerging geographies and verticals, non-linear growth due to platforms, products and automation.
- Increasing adoption of technology and telecom by consumers and focused government initiatives – leading to increased Information and communication technology adoption.
- The government’s Digital India Campaign predict a USD 20 billion investment covering mobile connectivity throughout the country, re-engineering of government process via technology and enabling e-delivery of citizen services.
- The SMAC (social, mobility, analytics, cloud) market is expected to grow to USD 225 billion by 2020.
Make In India – Leather Industry Highlights
- The Indian Leather Industry comprises of major segments namely Footwear, Finished Leather, Leather Goods, Leather Garments, Footwear Components and Saddlery and Harness. All these segments have high growth potential.
- Indian leather industry stands at USD 17.85 billion.
- India accounts for 12.93% of the world’s leather production.
- High Growth projected in the next five years.
- 55% of workforce below 35.
- Second largest producer of footwear and leather garments in the world.
- The domestic market is expected to double in the next five years from present level and reach USD 18 billion by 2020.
- Comparative advantages in cost of production and labor costs as compared to other major manufacturing countries.
- Skilled/trained manpower available for a new production unit or existing production unit.
- India is endowed with 20% of the world’s cattle and buffalo and 11% of the world’s goat and sheep population which is a strong base for raw materials.
Key Drivers for Growth
- Favorable government policies for promotion of leather sector.
- Increasing domestic market for Fashion Accessories like Hand Bags, Wallets, Purses etc.
- Youth Power: With 55% of the workforce below the age of 35, the Indian leather industry has one of the youngest and most productive work forces.
- High growth potential on exports, the ready availability of leather, the abundance of essential raw materials and rapid strides in the areas of capacity modernization and expansion, skill development and environment management, coupled with a favorable investment climate has made the Indian leather industry a favorable investment destination.
Make In India – Media And Entertainment Sector Highlights
- The film industry is expected to grow INR 204 Billion by 2019. INR 1,026 Billion in 2014 revenues. Second largest TV market in the world.
- 168 Million television households in 2014 comprising of 800 TV channels.
- INR 45 Million animation industry.
- The size of the television industry in India was estimated at INR 475 Billion in 2014, with a projected CAGR of 15.5% to reach INR 975 Billion in 2019.
- India has a large broadcasting and distribution sector, comprising approximately 7800 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers.
- Television advertisement revenue is also expected to witness robust growth and increase from INR 155 Billion in 2014 to a projected INR 299 Billion by 2019.
- The print industry has grown to INR 176.4 Billion in 2014 & is expected to reach INR 280 Billion in 2019 at a CAGR of 9.7%.
- To promote joint productions, co-production agreements have been signed with Italy, Germany, Brazil, UK, France, New Zealand, Poland, Spain, Canada, China and Korea. Agreement with Australia is in the pipeline.
- In order to promote India as a location destination for foreign production houses, the government is setting up a film facilitation unit with the help of National Film Development Corporation for facilitation of film shooting in India.
- The radio industry is expected to grow at a CAGR of 18.1% to reach to INR 39.5 Billion by 2019. Phase-III of e-auctions for FM radio licenses will provide an impetus to the segment.
Key Drivers for Growth
- Segments like Television and AGV (animation, gaming and VFX) are expected to lead industry growth, with opportunities in digital technologies as well.
- Growth in the number and spread of multiplexes; Increasing liberalization and tariff relaxation;
- Rising incomes and evolving lifestyles, leading to higher demand for aspirational products and services.
- Measures such as digitization of cable distribution to enable viewer’s choice and greater growth.
- Higher penetration and a rapidly-growing young population coupled with increased usage of 4G and portable devices to augment demand.
Make In India – Mining Sector Highlights
- This sector is one of the core sectors of Indian economy. It provides basic raw materials to many important industries.
- India produces as many as 88 minerals which includes 4 fuels minerals, 3 atomic minerals, 26 metallic & non-metallic minerals and 55 minor minerals (including building and other materials).
- The sector (including fuel, atomic, major and minor minerals) contributed about 2.4% of GDP in 2014-15 as per the data released by Central Statistical Organization under Ministry of Statistics & Program implementation.
- India has a liberalized FDI up to 100% in mining under automatic route.
- Ease of doing business
- Mineral concessions (Mining Lease & Prospecting Licence cum Mining Lease) grant to be done through auctions for the companies interested in mining or for the raw material for their downstream industry.
- An Inter-ministerial Group facilitator constituted for expediting the clearances and approvals
- Exploration companies can venture into the revenue share model being formulated for exploration of blocks identified by GSI. This has been enabled by the National Mineral Exploration policy, 2016 announced in July, 2016. About 100 blocks have already been identified by GSI for auctioning.
- The demand for various metals and minerals will grow substantially over the next 15 years.
- India’s strategic location enables convenient exports.
- India’s per capita steel consumption is four times lower than the global average.
Make In India – Oil And Gas Sector Highlights
- 635 million metric Tonnes (MMT) of proven oil reserves (2P).
- 54 trillion cubic Feet of proven natural gas reserves and 96 trillion cubic Feet of estimated Shale gas reserves.
- Third largest consumer of crude oil and petroleum products in the world and second largest refiner in Asia.
- 60% of the prognosticated reserves of 28,000 MMT are yet to be harnessed
- Regasified Liquified Natural Gas (RLNG) regasification facility is likely to increase from 47.5 MMTPA* by 2022 from a current level of 22 MMTPA.
*million metric tonnes per annum.
- Growing economy and population growth are the main drivers for oil & gas demand.
- India has become a net exporter of petroleum products by investing in refineries designed for export.
Make In India – Pharmaceuticals Sector Highlights
- Third largest pharmaceuticals market by 2020.
- 20% of Global Exports in Generics.
- USD 45 Billion in revenue by 2020.
- USD 26.1 Billion in generics by 2016.
- USD 200 Billion to be spent on infrastructure by 2024.
- 49% of all Drug master filing registered in the USA.
- Total exports of Drugs, Pharmaceuticals for 2013-14 at USD 15,095 million,
- India’s cost of production is significantly lower than that of the USA and almost half of that of Europe.
- India will become the sixth largest market globally in terms of absolute size by zero.
Make In India – Ports And Shipping Sector Highlights
- 87 New projects approved.
- 12 major ports and 64 minor ports handling Export Import cargo.
- 73 Public private partnership.
- 800 Million metric tones in cargo capacity.
- 60 Operational non-major ports
- 12 major ports in India handle approximately 57% of total Cargo traffic.
- Total 2422 million metric tonnes of cargo handling capacity would be required in Indian Ports by 2021-22.
- 90% of the country’s trade by volume and 70% by value is moved through maritime transport.
Make In India – Railways Sector Highlights
- Fourth largest rail freight carrier in the world
- Largest passenger carrier.
- Third largest rail network.
- 1.3 million strong work force in Indian Railways.
- Indian Railways network spans more than 66030 kms.
- 100% Foreign Direct Investment (FDI) in the railway infrastructure segment.
- The sector runs 22,300 train carrying over 23 million passengers daily and connecting more than 7137 stations.
- Indian railways carried around 8224.12 million passengers in 2014-15 which is about 1.430 million higher than the passengers of the world put together.
Make In India – Renewable Energy Sector Highlights
- Fifth largest power generation portfolio in the world.
- Fourth largest installed capacity of wind power.
- Third largest installed capacity of concentrated solar power (CSP)
- Renewable energy contributes 14.7% of the total installed capacity in the country as on 31.07.2016.
- 175 GW of renewable power by 2022 which will include 100 GW of Solar power, 60 GW from wind power, 10 GW from biomass power.
- Ambitious target of 175 GW of renewable power by 2022.
- Huge renewable resource availability and potential.
- India has vast untapped renewable energy resources.
Make In India – Roads And Highways Sector Highlights
- USD 8.21 billion outlay planned for highways.
- USD 22.6 billion budgetary support for central road sector development between 2012-17.
- 5.23 million kms of roads and highways in the country.
- 1.01 million kms of National Highways.
- USD 19 Billion Infrastructure Development by the end of 2017.
- The Government of India has launched major initiatives to upgrade and strengthen highways and expressways in the country
Make In India – Space Sector Highlights
- India’s space programme stands out as one of the most cost-effective in the world.
- 33 countries and three multinational bodies have formal co-operative arrangements in place with the Indian Space Research Organisation (ISRO).
- 30 spacecraft in differing orbital paths.
- India’s space programme has attracted global attention for its accelerated rate of development.
Make In India – Textile And Garments Sector Highlights
- Second largest textile fibre producer in the world.
- India is the largest cotton and jute producer in the world.
- Nine million tonnes of fibre production in 2015-16.
- Second largest textile manufacturing capacity globally.
- India accounts for 18% of world’s spindles and 9% of world’s rotor.
- 5% share in global textiles and apparel trade.
- Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres.
Make In India – Thermal Power Sector Highlights
- 301.564 billion tones of proven coal reserves.
- 1488.73 billion cubic meters of proven natural gas reserves.
- Fifth largest producer and consumer of electricity.
- 100% FDI permitted under automatic route in the power sector.
- Expansion in industrial activity to boost demand for electricity.
- A growing urban & rural population is likely to boost demand for energy.
- Increasing market penetration and per-capita usage will provide further impetus to the energy industry.
Make In India – Tourism And Hospitality Sector Highlights
- USD 21.07 billion in Foreign Exchange Earnings.
- 6.8% of India’s GDP.
- 1290.12 million Domestic Tourist Visits during 2014
- 35 world heritage sites, 10 bio-geographical zones and 26 biotic provinces.
- 8.03 million Foreign Tourist Arrivals (FTAs) during 2015
- Third largest foreign exchange earner for the country
- India has 21 Central institutes of hotel management
- 78 jobs are created with every USD 1 million invested in the sector
- India is 15th in the world in terms of International Tourism Receipts with a share of 1.62% of the world’s tourism receipts
- India offers geographical diversity including 35 World Heritage Sites and 10 bio-geographic zones
Make In India – Wellness Sector Highlights
- Second largest exporter of Ayurvedic and alternative medicine in the world.
- INR 490 Billion wellness market.
- 6200 indigenous herbal plants.
- INR 1 trillion wellness market by 2015.
- Potential to generate three million job opportunities.
- The country has developed vast AYUSH infrastructure comprising of 736,538 registered practitioners.
- Investors and corporate houses are increasingly investing in AYUSH sector.
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