Investment opportunities in india

Why invest in India Political Stability – Mr. Narendra Modi, the Indian

Prime Minister, has changed Indian Political scenariothereby bringing stability which is conducive todevelopment.

FDI invited – The Indian Government is keenlyinviting Foreign Direct Investment (FDI) andparticipation in various sectors in Economy.

Policy – Single Window clearance at both Center andState levels. In some cases an assured 24 hourclearance.

Government is targeting US $ 1 trillion for investmentsin infrastructure in 12th five years plan (2012-2017).

Rapidly expanding consumer market – will be oneof world’s largest consumer market by 2025.

According to Global Manufacturing CompetitivenessIndex of Deloitte, India to become 2nd mostcompetitive manufacturing destination by 2018.

65% population in working age group – costcompetitiveness and low labour costs – huge base ofbasic English speaking workforce.

FDI inflow in renewable energy sector in last 4 yearsstood over US $ 2000 million. Government plans tomeet 15% energy requirements through renewableenergy sources by 2020.

Services sector accounts for 50% of GDP and hasgrown over 10% annually for past 10 years.

National Innovation Council has set aside over US $900 million to facilitate talent development in R&Dsector.

Sectors for Investment

Automobile – India will be worlds 4th largest automotive market by 2015. 6 million+ vehicles to be sold annually by 2020.

Biotechnology – USD 3.7 billion budget from 2012-17. USD 100 Billion industry by 2025.

Railways – USD 1,000 Billion worth of projects to be awarded through PPP

Chemicals – Worlds biggest producer of dies, agro-chemicals and perto chemicals.

Civil Aviation – Worlds fastest growing aviation market. 9th

largest civil aviation market. 3rd

largest aviation market by 2020.

Defense – India has Defencespend of USD 37.3 Billion and is big on procurement.

Food processing – 199 Million cultivated hectares and 42 Mega Food parks in making.127 Agro-climate zones

Ports – 73 PPP, 87 new projects approved, 800 million metric tonnes in cargo capacity.

Power – 100% FDI through automatic route. 123 Billion tonnes of proven coal reserve.

Roads & Highways – USD 3.8 Billion outlay planned for highways. USD 19 Billion infrastructure development between 2012-17

Construction – 100 smart cities lined up for construction. USD 1 Trillion in investment projected at the end of 2017.

Gems & Jewelry Halthcare Heavy Industry Education SEZs Steel Telecommunications Tourism and Hospitality

Leather – USD 11 Billion Industry. 10% of World’s leather production.

ITeS – India is looking at a USD 100 Billion industry by 2022 and a few switched-on partners.

IT – IT and BPM industry has saved companies USD 200 Billion in last 5 years. 600 offshore development center for 78 countries.

Media & Entertainment – Rs. 220 Billion industry by 2018. 3rd

Largest TV market in the world. Rs.918 Billion in 2013 revenues.

Mining – 20-30 years mining

lease. Portfolio of 88 minerals. Oil & Gas – 2nd largest refiner in

Asia. 800 MMT of proven oil reserve.

Pharmaceuticals – 20% of global exports in generics. USD 45 Billion in revenue by 2020.

Textiles – 1st in global jute production. 63% of world’s market share in textile and garments.

Easy Procedure & Existence

Dealing with permits – Single window clearancesespecially for investments above US $ 185 million.

Advance Tax Rulings – To avoid any unpleasantsurprises later.

Enforcing contracts – easier now with priority beinggiven to litigation/ arbitration involving foreigncompanies investing in India as importance of foreigninvestment going up steadily

FDI caps across sectors increasing fast – upto 51%to 100% in key sectors.

Corruption and red tape reduced - due to effective Right to Information Act, 2005 and Government push to eliminate these evils.

Transparency in business regulation – clear cut policies especially where foreign investment is involved.

Mode of Entry

Entry Mode

Setting up a Non-Corporate Entity

Liaison Office

Project Office

Branch Office

Setting up a Corporate Entity

Wholly owned Subsidiary

Foreign Institutional Investors

Joint Venture

Strategy at Entry Level

Market Survey Report

Due Diligence Legal

Financial

Agreements Joint Venture

Shareholders Agreement

Charter Party Agreements

Rent Agreement

Lease Agreement & Etc.

Continued professional support from Lawyers and CA

Investment in North East

Major proposed road projects:

East-West Corridor beginning at Porbandar, Gujarat to theNorth-East through a 678 km four-lane highwayconnecting Silchar to Srirampur via Lumding-Daboka-Nagaon-Guwahati in Assam.

Widening 1,051 km stretches of various NationalHighways to improve connectivity of capital/ importanttowns.

The Arunachal Pradesh package:

Construction of public roads to link the hydel power project

Four-lane connectivity

Trans-Arunachal highway

Construction and improvement of 8,737 km of roadlength, including:

Two-lane NH connectivity to all state capitals with East-west corridor

Providing connectivity to all district headquarter of NorthEast Region by at least a two-lane road and providing inter-connectivity to all the state capitals by at least a two-laneNH.

Proposal to connect India and Myanmar through a singleroad running on either side of the borders.

Major proposed Railways Projects:

Outlay of $166.63 million proposed towards Rail

Development in North-East.

As per Rail Budget 2012-13, railway electrification projects

have been sanctioned for Assam.

New projects will add 882 kms of rail lines.

Brahmaputra river is planned to be brought under rail

connectivity.

Tripura:

Proposed 14 km metre gauge railway line between Agartala

(Tripura) and Akhaura (Bangladesh).

Proposed railway-link to be developed between Agartala

and Sabroom. covering 110 km.

Telecom

In September 2014 the Union Cabinet chaired by the Prime

Minister gave its approval for implementing a Comprehensive

Telecom Development Plan for the North-Eastern Region (NER).

The proposal entails an estimated expenditure of Rs. 5,336.18

crore.

Airports

Government of India is planning to set up 'Greenfield' Airports

and opening operation of airstrips in the North-East region, with

the objective of operating up to 50 airports / airstrips in the North

Eastern region and providing up to 600 flights per week within

the region.

The Airport Authority of India is also planning to develop new

'Greenfield' airports at Cheithu in Nagaland, Itanagar in

Arunachal Pradesh and one at Pakyong near Gangtok in Sikkim.

Investment in South IndiaAndhra Pradesh

Two Metro Rail Projects - in Visakhapatnam and VGTM

(Vijayawada-Guntur-Tenali-Mangalagiri) area – State

government has proposed a similar venture for the temple town

of Tirupati.

Rs 500 crore will be given by Central Government towards

development of 2,500 MW solar parks in Andhra Pradesh.

Concept notes for 19 proposed projects (mainly irrigation and

roads) have been prepared on the directions of the state

government and forwarded to the Andhra Pradesh finance

department. After a preliminary approval by the state

government, these will be sent to the Centre for final approval.

The major funding external agencies are the World Bank, Asian

Development Bank, Japan International Cooperation Agency,

Department for International Development, United States

Agency for International Development, KFW Development

Bank, and Canada International Development Agency.

Asian Development Bank (ADB) has offered to develop

industrial nodes with complete facilities along the proposed

Visakhapatnam-Chennai industrial corridor projects.

ADB country director Hun Kim, met Chief Minister N

Chandrababu Naidu and discussed the plan involving an

investment of $ 2.5 billion.

ADB said that it will set up industrial zones in the state within

six months.

Karnataka Plans to set up Centers of

Excellence for Technology

Development Project

Plans to develop the

Information Technology

Investment Region (ITIR)

project

Steel plant project at the cost

of about Rs. 9,912 crore

Road improvement project at

the cost of Rs. 700 crore

Proposed smart cities include:

Tumkur

Gulbarga

Bidar

Bijapur

Badami

Pattadakal

Mahakuta

Maharashtra Maharashtra is likely to have infrastructure projects worth Rs.

37,118 crore in Maharashtra across sectors such as Highways,

Ports and Shipping and Special Economic Zones (SEZs).

Government of India has given approval for the Rs. 14,574 crore

Greenfield Airport at Navi Mumbai. CIDCO has commenced the

tender process for the project implementation.

Nagpur Metro Rail Project which is coming up with an

investment of Rs. 8,000 Crore

After the Metro Rail project a 50 KM Mono Rail Project is also

proposed.

Government has an outlay of Rs. 2,836 crore for new Road

Projects and Rs. 164 crore for the repair, renovation and

restoration of water resources in the state

Tamil Nadu The major infrastructure projects lined up for Tamil Nadu

in areas such as industry, highways and ports, include:

Madurai-Tuticorin; Salem-Coimbatore; Chennai-Ranipetand Ranipet-Hosur industrial corridors projects,

Six/eight lane triangular corridors - Chengalpattu-Tuticorin,Tuticorin-Coimbatore and Coimbatore-Chengalpattu and

Development of ports in Cuddalore, Nagapattinam andManappad regions.

All these projects are to be executed through PPP mode. Onthe whole, projects involve a total investment of Rs. 15 lakhcrore in different critical sectors

Kerala Supplementary Gas Infrastructure Project - The total

investment for the project is estimated at Rs.2,000 Crores

($400 million).

Vizhinjam International Deepwater Multipurpose Seaport - The

port development along with the external infrastructure work is

envisaged to be carried out in phases with the cumulative cost

estimated at around Rs. 7000 Crores ($1.4 billion).

Kochi Metro Rail Project - The estimated project cost is Rs.

4500 Crores ($900 million).

Monorail Project in Thiruvananthapuram - The total project

cost is estimated at Rs. 3408 Crores ($682 million).

Investment in North IndiaNew Delhi

Investment Opportunities

(i) Industrial Parks

(ii) Metro Projects

(iii) Rapid Transport System

(iv) Roads

Uttarakhand

Hydro Power Projects in JV (Rs. 5400 Cr)

Renovation Modernization & Upgradation (Rs. 1367Cr)

Civil Infrastructure (Rs. 5000 Cr)

Power, Solar Power

Lake and Water Front Developments (Rs. 5000 Cr)

Cable Car/ Ropeway (Rs. 1000 Cr)

Punjab

Agro and Food Processing (Food Parks)

Information Technology (Rs. 349 Cr)

Urban Development (Rs. 10,000 Cr)

Bio Sciences and Healthcare

Haryana Delhi – Mumbai Industrial Corridor (US$ 90 billion)

Haryana – Manesar Bawal Investment Region (US $ 42 Billion)

Global City at Gurgaon

Multi- Model Logistics (Rs. 5000 Cr)

Mass Rapid Transit between Gurgaon and Manesar(Rs. 18,000 Cr)

Power Projects and Power Infrastructure

Transport Infrastructure

Uttar Pradesh

Solar Power (Rs. 150 Cr)

Leather Park (Rs. 200 Cr)

Plastic City, Auraiya (Rs. 4000 Cr)

Trans- Ganga Project- Kanpur-Unnao (Rs. 1300 Cr)

Mega Leather Cluster (MLC) project (Rs. 1000 Cr/ park)

Hi-Tech Industrial township (DMIC) Project (Rs. 2600 Cr)

Eastern Dedicated Freight Corridors Project (Rs. 42000 Cr)

Moradabad Special Economic Zone (Rs. 2200 Cr)

Sources

http://www.investindia.gov.in/roads-and-highways-sector/

http://www.ibef.org/industry/roads-india.aspx

http://www.nhai.org/doc/28Oct09/NHAI-Final.pdf

http://www.performance.gov.in/sites/default/files/departments/road-transport/2013-14.pdf

http://www.makeinindia.com/sector/roads-highways/

http://www.cfr.org/india/governance-india-infrastructure/p32638

http://www.oifc.in/infrastructure http://www.ibef.org/industry/indian-oil-

and-gas-industry-analysis-presentation http://petroleum.nic.in/ http://oidb.gov.in/

http://pcra.org/ http://ppac.org.in/ http://dipp.nic.in/English/default.aspx http://www.investindia.com http://www.makeinindia.com http://www.mdoner.gov.in/ http://www.mdoner.gov.in/content/icc http://www.indianchamber.org/northeas

t/NorthEastIndustrialandInvestmentPromotionPolicy.pdf

http://investinmanipur.nic.in/why_invest1.htm

http://www.investinassam.com/ http://investinmanipur.nic.in/ http://mizoram.nic.in/welcome.html http://www.investinindia.com/state/assa

m/invest-assam

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