India Hon’ble Prime Minister Prime minister Mr Narendra Modi in his recent speech at Davos invited global companies to come and expand their business in India.
India is laying out the proverbial red carpet for foreign investors and global companies to come and Invest in India
India’s Prime Minister Modi announced a historic programme to facilitate investments and build best-in-class manufacturing infrastructure in the country.
Necessary measures have been taken to reduce red tape and have an efficient system with online applications for industrial licenses, whose validity has also been extended to three years.
The government eBiz website, a convenient, single-window IT platform for all Government-to-business services, will work as a catalyst in the investment process as well ease of doing business in India
According to us as self-service products business consultants, we strongly feel there would be the dramatic shift of manufacturing line from China to India in the coming years.
India is poised to become THE NEXT MANUFACTURING DESTINATION for all global companies as India is in position to become the third largest economy in the world by the year 2020
Today’s India offers 3 ‘Ds’ for business to thrive— democracy, demography, and demand for all the global companies and investors who are planning to invest in emerging market India
India also offers tech-savvy workforce, ease of language communication, skilled labor, ease of doing business, robust, legal and IPR regime, with the strong commitments to be part of India economy growth.
Indias DEMOGRAPHICS ADVANTAGE:
• India is expected to rank amongst the world’s top three growth economies and amongst the top three manufacturing destinations by 2020.
• Favourable demographic dividends for the next 2-3 decades.
• Sustained availability of quality workforce.
• Strong consumerism in the domestic market.
• Strong technical and engineering capabilities backed by top-notch scientific and technical institutes.
• The cost of manpower & manufacturing costs much as compared to other countries.
India’s INFRASTRUCTURE Scenario
• Industrial Parks: Every local state in India has developed industrial parks for setting up of industries.
• National Investment & Manufacturing Zones set up :
• Special Economic Zones set up :
India has also developed SEZs that are specifically delineated enclaves treated as foreign territory for the purpose of industrial, service and trade operations, with relaxation in customs duties and a more liberal regime in respect of other levies, foreign investment.
• Sector-specific clusters: like electronic manufacturing clusters, mega food parks etc:
• The government of India has been promoting the development of sector specific parks.
• Country-specific zones: The country also has few dedicated zones for industrial units from countries, for example, Neemrana Japanese Zone etc.
• Industrial corridors: The Government of India is developing the Delhi-Mumbai Industrial Corridor (DMIC) as a global manufacturing and investment destination utilizing the 1,483 km-long, high-capacity western Dedicated Railway Freight Corridor (DFC) as the backbone.
INCENTIVES OFFERED FOR MANUFACTURING SETUPS.
• Sector-specific initiatives: The government of India provides sector-specific subsidies for promoting manufacturing for example in order to boost manufacturing of electronics, the Govt. of India provides the capital subsidy of up to 25% for 10 years.
• Area-based incentives:
• Incentives under income tax act:
• Investment Allowances:
• R&D Incentives:
• Export Incentives:
• State Incentives:
RECENT INITIATIVES FOR EASE OF DOING BUSINESS:
• The process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online.
• GST single tax across India
• Corporate Tax rates
• Initial validity period of Industrial License has been increased to three years from two years,
• Operationalizing thru the government’s e-BIZ portal:
• Easy Labour reforms:
.SECTOR OPPORTUNITIES: INDIA PROVIDES GREAT AVENUES FOR INVESTMENTS IN VARIOUS SECTORS.
India is expected to spend US$ 40 billion on defense purchases over the next 4-5 years.
India is expected to become a major automobile manufacturing hub for E Vehicles and would be the third largest market for automobiles by 2020.
Growth in the sector is driven by various sub-sectors such as infrastructure, power, steel, automotive, oil & gas, consumer durables etc
The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach the US $ 141 billion by 2021.
The Indian chemical industry stands as the third largest producer in Asia and 12th in the world, in terms of volume.
The Indian food industry stood around (US$ 39.03 billion) in 2013 and is expected to grow at a rate of 11 percent to touch (US$ 64.31 billion) by 2018.
Today almost 50 percent of India’s leather business comes from international trade.
The Indian pharmaceutical industry is estimated to grow at 20 percent compound annual growth rate (CAGR) over the next five years
The electronics market is one of the largest in the world and is anticipated to reach US$ 400 billion in 2022 from US$ 69.6 billion in 2012. The market is projected to grow at a compound annual growth rate (CAGR) of 24.4 percent during 2012-2020.
ELECTRONICS SYSTEMS DESIGN & MANUFACTURING
We as the self-service products business consultants see the great potential here in designing, developing and manufacturing new innovative products, vending cum kiosks integrations making new tools for product lines etc
The industry is one of the fastest growing sectors in the country. The Indian ESDM industry is estimated to be $100.31 billion in 2018.
India’s inherent advantages and the new Government’s initiatives make it an attractive proposition investment destination for India like never before and this optimism is being showcased all over the world.
The proper execution and impact of these initiatives will only be seen with time.
However, for now, it is clear that India is open for business.
I would like to thank various market research reports, management consulting reports and various publications for providing me with references to share my insights in this article.
About the Author
J B Lalla has spent over 30 plus years in sales and business development activities in the self-service Industry.
He has been involved in self-service domain and currently has his company self-service products and IT consulting company based out of Mumbai HQ India
He currently consults some of the Global MNCs companies in India on go to market business strategies & various futuristic technology projects.
For last 30 plus years. He has been instrumental in deploying more than 10,000 plus self-service products terminals across various market verticals in India and abroad.
He has extensive exposure, domain knowledge, and best industry practices around self-service solutions.