INVESTING in INDIA - International Enterprise Singapore/media/IE Singapore/Files/Events... · INVESTING in INDIA THE BUSINESS OPPORTUNITY Dr. Anupam Srivastava Managing Director,

INVESTING in INDIA THE BUSINESS OPPORTUNITY

Dr. Anupam Srivastava

Managing Director, Invest India &

Assistant Secretary General, FICCI

GDP growth

Average growth during

1990s – 5.7% Average growth

2003-04 to 2007-08 8.8%

5.3

1.4

5.4 5.7 6.4

7.3 8.0

4.3

6.7 6.4

4.4

5.8

3.8

8.5

7.5

9.5 9.7 9.2

6.9

8.0 8.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

19

90

-91

19

91

-92

19

92

-93

19

93

-94

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

-20000

-10000

0

10000

20000

30000

40000

50000

1991-9

2

1992-9

3

1993-9

4

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Foreign Investment Inflow (USD million)

FDI Portfolio

FDI 1991-92 – $129 million Portfolio inflows 1991-92 – $4 million 2010-11 - $27 billion 2010-11 – $31.5 billion

In the last 5 years India has received FDI to the tune of $160 billion

Foreign Investments

5th largest consumer market

by 2025

Increased disposable

incomes & changing lifestyles

3rd largest scientific and

technical manpower in the world

Over 26,000 institutes of higher

education across disciplines

HUGE INDIAN MARKET LARGE RESERVE OF SKILLED

MANPOWER

COMPETITIVE IN SERVICES & MANUFACTURING

Rank Country Score

1 China 10.0

2 India 8.15

3 ROK 6.79

4 USA 5.84

Country Score

1 India 7.0

2 China 6.5

3 Malaysia 6.0

4 Egypt 5.8

Global Manufacturing Competitiveness Index 2010

Global Services Location Index 2011

2010-2011

2015-2016

2025-2026

Consumers

160m

267m

547m

Strong Fundamentals

Source - Deloitte &US Council on Competitiveness Source - AT Kearney

Targets for 2022

Improve share of manufacturing in GDP from 16% to 25%

Create 100 m additional jobs in manufacturing sector

Emphasis on value-addition (via technology-embedded

partnerships)

Pragmatic policy support to enhance global competitiveness

Ensure sustainable growth

Optimal use of natural resources

Environment-friendly

Energy efficient

India – National Manufacturing Policy

NMIZs a key instrument in the National Manufacturing Policy

Economies of scale

5000-12500 hectares size

Co-location of sector-specific ancillary units

Reduced transportation costs

Government to build basic infrastructure; ensure dedicated,

world-class, rail-road-port connectivity

Formation of a dedicated agency (Special Purpose Vehicle) to

reduce compliance burden

Formation of a Trust to finance long-term debt and issue tax-

free bonds; also provision of viability gap funding

National Manufacturing & Investment Zones

Special features

Tax concessions

Flexible labor laws

Easy exit policy

Progressive environmental regulatory regime

Support for clean & green technologies

Modern, energy-efficient residential facilities

Schools and training institutes for employees

continued

National Manufacturing & Investment Zones

Global manufacturing and investment destination

Utilize 1500km long, high-capacity, western Dedicated Railway

Freight Corridor (DFC)

Develop international-caliber ICT-enabled industrial cities

24 manufacturing cities envisioned in the

master plan; 6 NMIZs along the corridor

Investment target: $90b

Opportunities across the value chain

power, transportation, equipment, internal

infrastructure, ICT

Delhi Mumbai Industrial Corridor (DMIC)

Sectors for Investment

Infrastructure

$1 trillion investment target

(2012–2017)

Key Government initiatives

Opened key sectors to private

sector; permitted FDI

Initiating mega-projects

National Highway

Development Project ($60b)

National Maritime

Development Program

Delhi Mumbai Industrial

Corridor ($90 b)

PPP model encouraged

Priority sectors - roads,

highways, railways, port, power

Roads & Highways

One of the largest road networks -

3.3 million km

National Highway Development

Project (NHDP)

$ 60b (~60% slated for private

financing); $32b awarded thus

far (Dec 2011)

Scope – widen, upgrade,

rehabilitate 54,000 km

100% FDI permitted

Investment opportunities

Development Projects

Logistics and Services

Power

Current Capacity: 172 GW

Target for 2017: 325 GW

Investment target for 2012–17

$235.1b

100% FDI permitted in

generation, transmission &

distribution (other than N-

power)

Investment opportunities

Power generation,

transmission

Power equipment

Railways

Projects planned

Freight Corridors / Terminals

Port connectivity projects

High Speed Rail Corridors and

Metro – Rail Projects

Modernization and augmentation

of railway infrastructure

Investment opportunities

Railway projects

Manufacturing of locomotives,

coaches, wagons, railway

equipment & related components

100 % FDI permitted in rail track

construction, ownership of rolling

stock, provision of container

services & container depots

Ports / Ship Building

Coastline – 7,500km, 12 major ports , 187 minor ports

Traffic handled (2009-10) - 849.9MT

Maritime Agenda 2010-2020 Targets

Create port capacity of ~3200 MT by 2020

Upgrade domestic ports to international standard

Enhance India’s share in global ship-building from the current

1% to about 5% by 2020

Improve tonnage, cargo-handling practices

100% FDI

permitted in most

sectors

No prior approval

necessary; only

central bank to

be informed

Approval reqd from

Foreign Investment

Promotion Board in

certain cases

Proposals with

total foreign equity

more than INR12B

(~ $269m) must be

cleared by Cabinet

Committee on

Economic Affairs

FDI not allowed in:

Lottery, Gambling &

Betting

Real Estate

Manufacturing of Cigars

and cigarettes

Sectors not open to pvt

sector investment (incl

N-energy)

Agriculture (excludes

floriculture, horticulture)

FDI Policy & Procedures

NEGATIVE LIST AUTOMATIC ROUTE GOVERNMENT (FIPB)

ROUTE

Consolidated FDI Policy available on DIPP website (http://dipp.nic.in/);

also available on Invest India website (http://investindia.gov.in/)

Set up as the official Investment Facilitation Agency for India

A “not-for-profit” joint venture of Department of Industrial

Policy & Promotion (Ministry of Commerce & Industry), State

Governments of India, and Federation of Indian Chambers

of Commerce & Industry

Board – 6 members each from Industry & Government of

India

Partners – Leading consulting / legal firms (PWC, KPMG,

E&Y, Grant Thornton, Vaish Associates)

Focal points – in all Indian States and in embassies /

consulates

MOUs – with JETRO (Japan), Select USA (USA), UK Trade

& Invest (UK), Invitalia (Italy), UBIFrance & Invest in France

(France), KOTRA (S. Korea), BOI Mauritius

Invest India

Invest India

There is a need for promoting foreign

investments in India in a structured manner

and provide quality input and support services

to the investors, particularly the SMEs and

family-owned overseas enterprises. ‘Invest

India’ would respond to this urgent imperative.

Honorable Anand Sharma

Minister for Commerce and Industry

Mission - “Promoting foreign investments in India in a

focused, comprehensive and structured manner while acting

as a first reference point to provide quality input and support

services to the investors.”

A unique platform to assist Investors across sectors and

across regions

Pre-Investment Consultation

Respond to diverse queries – company set up, sector

opportunities, living & work environment, taxation, legal

landscape, fiscal and labor regime

Coordinate with Central/State Govt.. agencies for

information on location of investment / assisting with

business visits

Execution

Foster B2B linkages for national & international projects

Provide support to secure approvals from central & state

governments

Liaise with central & state governments; follow-up on

regulatory approvals and NOCs

Invest India – Services to Investors

Aftercare

Leverage focal points in state and central government

ministries to address delayed cases

Resolve or mitigate investor grievance by arranging

meetings with relevant agencies; facilitating the

resolution process

Pragmatic assistance in handling administrative and

company issues

Leverage and render expert advice relating to expansion

or scaling-up plans

Invest India – Services to Investors

Welcome to India

Invest India Federation House

Tansen Marg

New Delhi – 110001

India

E: [email protected] W: www.investindia.gov.in