INVESTING in INDIA THE BUSINESS OPPORTUNITY DUSHYANT THAKOR

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 B 2 B 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 FDI INFLOWS 35. 8 (US$ bn) 32 26. 7 27 22 22. 8 24. 2 16. 4 2. 4 4 2. 6 2. 1 3. 7 6 2000 -012001 -022002 -032003 -042004 -052005 -062006 -072007 -082008 -092009 -102010 -112011 -122012 -132013 -14 Rich demographic dividend Huge domestic market • India 2 nd 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 41% 2005 populatio 5% n middle population class - middle 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 INR 12 B (~ $200 m) 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 e. Biz 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 G 2 B services through an online portal. All Central Government Departments and Ministries will integrate their services with e. Biz by December 31, 2014

TAIWANESE INVESTMENTS IN INDIA As per fdi. Markets (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 KARNATAK A TAMIL NADU Average MAHARASHTR A 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 100 m 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 USD 120 billion by 2015 from USD 85 billion in 2012. Major component sourcing hub; 2 nd 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 2 nd 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 6 th 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 & ITe. S 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 e. Governance 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; $60 b 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 $235 billion (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 ~3200 MT by 2020; upgrading domestic ports; enhancing share in global shipbuilding to 5% by 2020. AVIATION: ninth largest civil aviation market ; domestic airlines carry ~60 m passengers; FDI norms relaxed; airports modernization WATER: Opportunities – urban water supply, waste water treatment, desalination

INDUSTRIAL CORRIDORS

DELHI MUMBAI INDUSTRIAL CORRIDOR Exhibition Center, Aurangabad Exhibition cum Convention Centre at Dwarka, New Delhi Pithampur-Dhar- Mhow – Master Plan 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: dushyant. thakor@ficci. com M: +91 -9810030967