INDIA CAPTIVATES
Make in India : A doorway to business opportunities
Make in India is the Indian Government ’ s flagship program , intended to help turn India into a global manufacturing hub . It aims to :
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Promote the manufacturing of lowcost , eco-friendly and zero-defect products
Foster innovation
Enhance skill development
Protect intellectual property
Build best-in-class manufacturing infrastructure
In support of the Make in India initiative , the Government has embarked on a series of actions , including those outlined below :
1 . New trade policy : export and import taxes on small volumes of goods have been abolished , and incentives have been introduced for export – oriented units ( EOUs ) and export processing zones ( EPZs ).
2 . New labor laws : these include a “ single-window ” labor compliance process for companies , simpler Provident Fund ( compulsory employee insurance and pension ) procedures and a new inspection scheme .
3 . Simplification of regulatory compliance : to make doing businesses easier , companies can now obtain environmental approvals and licenses online .
4 . Improvement of its resource management program : India has ample reserves of natural resources , including bauxite , coal and iron ore , that can fuel its manufacturing ambitions . The Government is taking steps to ensure they are used more efficiently . It concluded several coal block auctions in early 2015 , enabling companies to access these resources . The Government is also encouraging solar and wind renewable power generation projects .
5 . Focus on skill development : to ensure workers have the right skills , the Government launched its Skill India initiative to help the development of manufacturing . The initiative will train over 500 million young people by 2020 to make them more employable .
India ' s top FDI destinations
Share of FDI capital in 2014
The technology hub of India attracted more than 45 % of the investments in the TMT sector ( electronic components , and software and IT services ), as the Government offers 50 % capital subsidy on R & D units . Industrials ( diversified ) is picking up pace : foreign investors initiated six industrials projects worth US $ 236m in 2014 , up from just one in the previous year .
Bengaluru
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The new industrial policy ( 2014 – 19 ) is in place to attract INR 5t ( US $ 83b ) of investments and create 1.5 million jobs in manufacturing , particularly industrials .
Mumbai
The financial capital of India received most interest in the financial services sector , with 14 projects , worth US $ 734m , in 2014 . The UAE was the top investor in the financial services sector , while the US is investing in the TMT sector .
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Rapid urbanization is happening in the suburbs nearby Mumbai ( Navi Mumbai , Thane , etc .) as cost and resources constrain the city . This will open opportunities for financial services , technology and infrastructure sectors .
Delhi-NCR
In 2014 , FDI in the Delhi-NCR region slipped to US $ 15b , from US $ 23b in 2013 . The FDI landscape in the region is dominated by infrastructure investments , as the NCR region ( nearby area to the capital city ) continues to witness a high urbanization rate . Also , as the region hosts a vast talent pool , it is the hub of various MNCs , particularly in the business services domain .
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The Delhi-NCR region has developed into a strong business center , attributable to high talent availability in the region and also being the country ’ s capital . As the urbanization rate and geographical spread of Delhi-NCR region expands further , it is expected to continue attracting investments .
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