INVESTING in INDIA
THE BUSINESS OPPORTUNITY
DUSHYANT THAKOR
GENERAL MANAGER
INVEST INDIA
INVEST INDIA
The official Investment Facilitation Agency for India
A “not-for-profit” joint venture
DIPP, Ministry of
Commerce &
Industry
Federation of Indian
Chambers of
Commerce & Industry
State
Governments
of India
Focal points – in Indian States and in embassies / consulates
Handholding through the investment lifecycle
Pre-Investment
• Respond to queries
– doing business,
company set up and
policy
• Coordinate with
state government
agencies
Execution
• Foster B2B
linkages
• Assist in delays in
approvals and
clearances
Aftercare
• Render advice for
scaling-up plans
• Resolve or
mitigate investor
grievances;
facilitate the
resolution process
TAIWAN DESK @ INVEST INDIA
Investor targeting is the key activity to be undertaken by the Country
Desk.
Other activities undertaken will include providing end-to-end
facilitation support; setting up and accompanying investors for
business meetings; promoting JVs; supporting delegation visits and
preparing collaterals. Mr Joy Chatterjee has been hired as the Country
Desk Manager for Taiwan.
Connected and working closely with TECC officials in Delhi.
Working on creating various sectoral documents (in process) such as
ESDM / Auto components / Tech textiles etc.
Head, Country Desk for Taiwan attending training a program in
Hsinchu (Taiwan) on International Economic Affairs on the
recommendation of TECC.
Assisted the automotive component delegation; organizing
investment seminar during EMMA (September 12, 2014)
INDIA’S INWARD INVESTMENT SCENARIO
35.8
FDI INFLOWS
(US$ bn)
32
27
26.7
22
22.8
24.2
16.4
2.4
4
2.6
2.1
3.7
6
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Rich demographic dividend
Huge domestic market
• India 2nd largest populated
country
• India has a very young
population - Over 62% of
India’s population is in the
age-group of 15-59 years
India to be fifth largest
consumer market by 2025
Emerging knowledge hub

India has third largest
technical and scientific
manpower pool in the
world

Prowess in Information
technology
is
well
acknowledged
FDI POLICY & PROCEDURES
AUTOMATIC ROUTE
GOVERNMENT (FIPB)
ROUTE
100% FDI
permitted in most
sectors
Approval reqd from
Foreign Investment
Promotion Board
No prior approval
necessary; only
central bank to be
informed
Proposals with total
foreign equity more
than INR12B
(~ $200m) must be
cleared by Cabinet
Committee on
Economic Affairs
NEGATIVE LIST
FDI not allowed in:
Lottery, Gambling &
Betting
Trading in Real Estate
Manufacturing of Cigars
and cigarettes
Sectors not open to pvt
sector investment
(including N-energy)
Farming
Consolidated FDI Policy available on
•
DIPP website (http://dipp.nic.in/)
•
Invest India website (http://investindia.gov.in/)
INDIA – RECENT POLICY MEASURES
DEFENCE
Composite cap in manufacturing
increased to 49% from 26%, with
full Indian management and control
through the FIPB route; FDI beyond
49% allowed under approval route
on case to case basis
RAILWAYS
100% FDI in railway transport sector
under the automatic route for the
construction,
operation
and
maintenance
eBiz
CONSTRUCTION
Requirement of the minimum built
up area and capital conditions for
FDI reduced for smart cities;
Projects which commit 30% the
total project cost for low cost
affordable housing exempted
MANUFACTURING
Manufacturing units with FDI under
the automatic route allowed to sell
their products through retail,
including e-commerce platforms,
without any additional approval.
Vision is to transform the business environment by enabling
fast and efficient access to G2B services through an online
portal. All Central Government Departments and Ministries will
integrate their services with eBiz by December 31, 2014
TAIWANESE INVESTMENTS IN INDIA
As per fdiMarkets (Financial Times), Taiwanese outward investments
third highest in India after China & Vietnam, in terms of number of
projects and number of jobs created
No of FDI projects
81
Total jobs created
27,129
Average project size
(jobs)
334
FDI Projects from Taiwan into India
Period – January 2003 – June 2014
Top Sectors
Electronics
- Communications
- Business Machines & Equipment
- Electronic Components
- Semiconductors
Industrial Machinery, Equipment &
Tools
Software & IT services
Transportation
Others
- Metals
- Chemicals
- Food & Tobacco
- Textiles
- Rubber
Success Stories - Many Taiwanese
brands have become household
names in India
TAIWANESE INVESTMENTS IN INDIA
ANDHRA
PRADESH
KARNATAKA
TAMIL
NADU
Average
MAHARASHTRA
Total
GUJARAT
Maharasht
ra
Tamil
Nadu
Karnataka
Delhi
Gujarat
Andhra
Pradesh
Haryana
No of
companies
NCR
Projects
Destinatio
n state
16
12
2,426
151
10
8
12,636
1,263
9
8
5
8
8
3
838
707
2,732
93
88
546
3
3
1,392
464
2
2
1,042
521
No of Jobs
OPPORTUNITIES ACROSS SECTORS
MANUFACTURING – MAKE IN INDIA
Key focus is “Make in India”
National Manufacturing Policy
Targets for 2022 - Improve manufacturing share in GDP from 16%
to 25%; Create 100m additional jobs in manufacturing
Creation of national investment & manufacturing zones. Minimum
size of 5000 hectares (50 sq. km.). Processing area to be at least
30%.
Special Focus Sectors
Industries with Strategies Significance - Defence Equipment; Aerospace;
Shipping; IT Hardware, Electronics; Telecommunication; Solar Energy
Capital Goods Industries - Machine Tools; Earth Moving and Mining
Equipments; Heavy Electrical Equipments; Heavy Transport
Industries where India enjoys competitive advantage - Automobiles;
Pharmaceuticals and Medical Equipment
Employment Intensive Industries - Textiles & Garments; Food Processing
Industries; Leather & Footwear; Gems & Jewellery
Public Sector Enterprises
MACHINERY
Heavy Electrical – Boilers,
turbines & generator sets,
transformers, switchgear
Heavy Engineering - Machine
tools, textile machinery, cement
machinery
Light Engineering - Casting and
forging, medical and surgical
equipment, industrial fasteners
ENERGY EFFICIENT
TECHNOLOGIES
Target to reduce energy by 5 –
10% by 2014 (mandatory) in
power intensive sectors
Opportunities - smaller capacity
gas turbines; energy efficient
lighting systems; highly efficient
water heaters & batteries; low
temperature waste heat recovery
systems
AUTOMOTIVE COMPONENTS
TEXTILES
Emerging global manufacturing
hub for low-cost compact cars
The domestic textile and apparel
industry in India is estimated to
reach USD120 billion by 2015
from USD85 billion in 2012.
Major component sourcing hub;
2nd largest 2-wheeler market
Emerging as R&D hub for
automotive
Abundant raw material and
increasing demand for exports to
boost fiber production.
FOOD PROCESSING
Largest producer of pulses, milk, cashew nuts, coconuts & tea
2nd largest producer of rice, wheat, sugar, ground nut, inland fish, fresh
vegetables; Post-harvest loss are very high
42 mega food parks currently being established – will provide plug-andplay facilities to SMEs
Opportunities:
Fruit & Vegetable processing - Growth in ready-to-serve beverages,
fruit juices and pulps, dehydrated and frozen fruits and vegetable
products, tomato products, pickles, convenience veg-spice pastes,
processed mushrooms and curried vegetables
Consumer food - Packaged food; Aerated soft drinks; Packaged
drinking water; Alcoholic beverages
Dairy and meat processing
Supply-chain related infrastructure - Warehousing, cold chains,
packaging; government’s main focus is on supply-chain related
infrastructure like cold storage, abattoirs and food parks
Grain Processing - Oil Milling Sector, Rice, Pulse Milling and Flour
Milling Sectors.
SRINI FOOD PARK
Warehouse
Multi Fruit Processing Line
Decanter Equipment
Warehouse
Aseptic Filler
PATANJALI FOOD & HERBAL PARK
DRY & RM WAREHOUSE
WTP
WEIGH
BRIDGE
R.O. PLANT
INTERNAL SECURITY
ADMIN BUILDING
FG WAREHOUSE
BOILERS
ROAD
S
PPC
SHEDS
O/H WATER TANK
TRANSPORT FACILITIES LOADING AREA
BIO GAS PLANT
LAL TAPPAR -PPC
PRE COOLING CHAMBER
ELECTRONICS
The Indian ESDM industry was estimated to be $68.31 billion in 2012;
anticipated to be $94.2 billion by 2015; CAGR of 9.88% between 2011
and 2015.
Significant local demand; Rising manufacturing costs in alternate
markets.
Export potential - huge consumption market in Middle East; emerging
growth markets of North Africa and Latin America.
Exports expected to grow from $4 b (2012) to $15 b (2020)
100% FDI permitted in the sector
National Policy on Electronics (NPE): To attract investment of USD 100
billion and generate employment of 28 million
Modified Special Incentive Package Scheme (MSIPS)
Fiscal support being offered for setting up Electronic Manufacturing
Clusters (EMCs)
Substantial opportunities in Semiconductor wafer fabrication;
Electronic Components; Semiconductor design; Telecom products;
Industrial / Consumer electronics
CHEMICALS
Indian chemical industry is 6th largest in the world . Indian
chemical industry could grow at 15% p.a. to reach size of $290
billion by 2017
Supply side advantages
Wide availability of raw materials, components
Low-cost manufacturing
Skilled English speaking manpower
Per-capita consumption of chemicals in India is lower relative to
Western countries.
PCPIRs (Petroleum, Chemicals & Petrochemicals Investment
Regions coming up across India - 250 sq km area; investments
$15-20 b
Investment Opportunities:
Manufacture of organic / inorganic chemical products
including dyestuffs & pesticides
Process plant and machinery
Speciality chemicals & Engineering polymers
RESEARCH & DEVELOPMENT
HEALTHCARE
200 of Fortune 500 companies
have R&D operations in India
12-15% growth over the next
decade
2010 – 2020 – Decade of
innovation
Opportunities – Health
infrastructure, clinical trials,
medical tourism
Global destination for engineering design , prototype
development, manufacturing hub
for high technology products
Medical tourism is growing at
around 18 % and is expected to
touch US$ 2 billion by 2015
TOURISM
IT & ITeS
High priority area; 7 million
foreign tourists arrivals in 2013.
Rich cultural heritage, traditions,
festivals, food, architectural
monuments, hospitality
Luxury domestic travel sector
growth - 20-25 per cent
Growth engine for the economy
IT services sector to grow by 1314 per cent in 2013-14
National eGovernance Plan
comprises 31 mission mode
projects
OPPORTUNITIES IN INDIA’S
INFRASTRUCTURE
INFRASTRUCTURE
$1 trillion investment
target (2012–2017)
ROADS & HIGHWAYS: World’s
second largest road network;
$60b NHDP, 60% slated for
private financing.
Opportunities - development
projects, logistics and services.
RAILWAYS: Opportunities railway projects;
manufacturing of locomotives,
coaches, wagons, railway
equipment & components,
Allowing FDI in Railways in
discussion.
CONSTRUCTION/REAL ESTATE:
High growth in housing, retail,
hospitality, and commercial;
Fund allocated for Smart Cities
in the recent budget.
POWER SECTOR: Investment target
$235billion (for 2012-17);
Opportunities - power generation
& transmission; manufacturing /
supply of power equipment.
RENEWABLE ENERGY: 15% of energy
requirement through renewable
sources by 2020;
Target to reduce energy by 5 – 10%
by 2014 in power intensive sectors
PORTS: Maritime Agenda 2010-20
port capacity of ~3200MT by 2020;
upgrading domestic ports;
enhancing share in global shipbuilding to 5% by 2020.
AVIATION: ninth largest civil aviation
market ; domestic airlines carry
~60m passengers; FDI norms
relaxed; airports modernization
WATER: Opportunities – urban
water supply, waste water
treatment, desalination
INDUSTRIAL CORRIDORS
DELHI MUMBAI INDUSTRIAL CORRIDOR
Exhibition Center,
Aurangabad
Pithampur-Dhar- Mhow – Master Plan
Exhibition cum Convention Centre at
Dwarka, New Delhi
Dadri -Noida
– Ghaziabad
Investment
Region
Master Plan
Manesar – Bawal Master Plan
WELCOME TO INDIA
INVEST INDIA WEBSITE – ONLINE QUERY FORM
investindia.gov.in
CONTACT POINT
Dushyant Thakor
General Manager
E: [email protected]
M: +91-9810030967