Why India? Reasons for choosing India for investments
Reasons for choosing India for investments Fastest growing economy Forecasted to remain one of the fastest growing economies in the world. FDI inflows increased by 37% since launch on Make in India initiative, 2014. Ranked 5 th most attractive market by global investors (PwC survey report, 2018). Largest youth population Forecasted to have world s largest youth population by 2020. To have largest number of university graduates by 2020 Has world s 3 rd largest group of scientists and technicians Huge domestic market Domestic market, drives increasing consumption in India Consumer story to be led by its 129 mn urban mass consumers Private consumption to increase by 4 times by 2025
Reasons for choosing India for investments Rising economic influence Forecasted shift of global maritime trade from Pacific to Indian Ocean Region. India and China projected to become world s largest manufacturing hubs by 2030. Building up connectivity to Central Asia and Europe via the International North-South Transport Corridor (INSTC). Growing Indian infrastructure Over next 3 decades, 350 mn Indians to move into cities Investments planned over various government sectors: Highways- $106.5 bn Railways- $ 131.7 bn Ports- $ 61.5 bn Airports- $ 58 bn Industrial corridors- $ 100 bn etc. Rising global competitiveness Global rank for Ease of doing business (EoDB) improved from 147 to 100 between 2014-17. Ranks 40 th in Global Competitiveness Index 2017-18 95% Indians are covered under Aadhar Scheme, world s largest social security program
Ease of doing business in India, 2018 According to the World Bank Doing Business Report, 2018, India ranks 100 th out of 190 countries surveyed. According to World Bank criteria, India ranks one of the top 5 reformers for measuring the ease of doing business. India ranks 2 nd after China as the most attractive FDI destination, ahead on indicators like Getting credit, protecting minority interest Source: World Bank Report, Doing Business 2018
Significant Reforms that facilitate businesses The following are some reforms undertaken or planned by the Government of India. Goods and Services Tax (GST) Definition: GST is a single tax levied on the supply of goods and services from the manufacturer to the consumer. Most significant indirect tax reform implemented w.e.f 1 July 2017. Relevance: Gives rise to a Centralized supply in value chain, allows companies to create centralized supply chain models GST compels the unorganized sector to comply Having simplified the indirect tax structure, GST is expected to boost the economy Banknote demonetisation Definition: On 8 November 2016, the Government of India announced demonetisation of all INR 500 and INR 1000 banknotes, and issuance of new INR 500 and INR2000 banknotes in exchange Relevance: E-commerce and online payment got a big boost Indian digital transactions platforms flourish, for example Paytm (280 million registered users), BHIM and Unified Payment Interface (UPI)
Significant Reforms that facilitate businesses Insolvency and Bankruptcy Code, 2016 Definition: Overrides all legal and institutional mechanisms in India for dealing with debt defaults of all firms Aimed at resolving insolvencies in a strict time bound manner Relevance: Code outlines insolvency resolution processes for individuals, companies and partnership firms Proceedings are overseen and entities are regulated by Insolvency and Bankruptcy Board of India Procedures managed by licensed professionals Performa for Incorporating Company Electronically (SPICe form) Definition: Government introduced the SPICe form to streamline business incorporation process. This combines the application for the Permanent Account Number (PAN) and the Tax Account Number (TAN) into a single submission. Relevance: A simplified procedure of incorporation of a start-up business within a single day. Less documentation, no requirement of minimum paid-up capital, commencement certificate and common seal is optional
Automobiles Sector in India Key figures World s 4 th largest vehicle market, expected to become 3 rd largest by 2026 World s largest tractor manufacturer World s 2 nd largest two wheeler market World s 4 th largest car producer Industry Scenario Expected to reach $ 135 bn by 2020 Export growth rate for Passenger and Commercial vehicles category: 16.2% and 5% respectively Major investors: Hyundai, Nissan, Renault, Toyota etc
Chemicals Sector in India Key figures 3 rd largest producer of chemicals in Asia, by volume Covers more than 70,000 commercial products World s 3 rd largest polymers consumer World s 4 th largest agrochemicals producer Industry Scenario Expected to reach $ 403 bn by 2025 Colourant industry, valued at $ 6.8 bn, exports 75% produce Major investors: Mitsubishi chemical, Adeka, Du Pont etc
Electronics Sector in India Key figures One of largest consumer electronics markets in Asia Pacific region Fastest growing smartphone market in Asia Pacific Consumer Electronics and Appliances Industry expected to become world s 5 th largest by 2025 Industry Scenario Electronics market to reach $ 228 bn by 2020 2015: Electronic component industry valued at $ 13.5 bn Major investors: Bosch, Delphi, GE Healthcare etc
Aviation Sector in India Key figures World s 3 rd largest civil aviation market (domestic traffic), 9 th largest in the world World s fastest growing domestic air market Aviation sector in India supports 8 mn jobs India aims to become 3 rd largest aviation market globally by 2020 Industry Scenario Present count: 464 airports and airstrips Maintenance, Repair and Overhaul (MRO) industry to grow to $ 2 bn by 2020 Major investors: AirAsia, AIRBUS, Boeing etc
Significant Organizations Federation of Indian Chambers of Commerce and Industry (FICCI) Established in 1927, on the advice of Mahatma Gandhi, FICCI is an association of business organizations, the largest, oldest in the country. Works for sector specific business development, promotion and networking Confederation of Indian Industry (CII) Established in 1895, the CII is a non-government, not for profit, industry-led and industry-managed organization. Works with government on policy issues, has been a catalyst of change in India s economic policy reforms Invest India Established in 2009, Invest India is the national investment promotion and facilitation agency. Focuses on sector-specific investor targeting and development of new partnerships to enable sustainable investments in India
Indo-French Partnership India and France have traditionally close and friendly relations, formally marked in 1998 when the two countries entered into a Strategic Partnership. The following slide presents some figures reflecting on Indo-French economic cooperation
Indo-French Partnership Trends in Goods and Services Goods: Between January and June 2018, India-France bilateral trade: EUR 5.2 billion Indian exports to France increased by 6.11 % majorly in mineral fuels and oils, optical, photographic, precision, medical and surgical instruments, nuclear reactors and boilers, footwear etc. Services: In 2017, Indian export of services to France increased by 39.26% to reach EUR 2.4 billion. In 2017, Indian import of services from France increased by 18.66% to reach EUR 1.73 billion. Trends in investments Indian investments in France: India is 30 th largest investor in France 150 Indian companies operate in France, employing 7000 people In 2017, the following 3 companies invested in France: Infosys Technology, United Phosporus, Zify Tech Solutions French investments in India : France is 9 th largest foreign investor in India: 1.65% of total FDI inflows More than 1,000 French establishments operate in India 39/40 CAC 40 companies are present in India
Mission of the Indian Embassy in Paris, France Promotion of Indian goods and services in France Promotion of brand India and the corporate image of India Promotion of India as a Foreign Direct Investment destination Promotion of the Make in India campaign and other government schemes Contact us: www.eoipparis.gov.in Address: 13-15 Rue Alfred Dehodencq, 75016 Paris
Important Publications by the Government of India Les Etats de l Inde https://www.eoiparis.gov.in/docs/final%20states%20brochure%20in%20french%20june%202018. pdf Directory of Indian Businesses based in France https://www.eoiparis.gov.in/docs/directory%20of%20indian%20businesses%20based%20in%20france%20(08. 02.18).pdf Book on Testimonials by the CEOs of French companies present in India https://www.eoiparis.gov.in/docs/15260197001.pdf
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