| 52 | | 53 | SPECIAL FEATURE: INVEST INDIA New India, under the leadership of Hon’ble Prime Minister Narendra Modi, is progressing at a fast pace. Today, India is the world’s fifth largest economy with a USD 3.75 trillion GDP and a 7.2% annual growth rate, which is the fastest among the G20 countries. India, aided by demographic advantage and financial sector development, is poised to become a USD 7.3 trillion economy and the third largest in the world by 2030. In the last decade, India has witnessed progress in every aspect of socioeconomic development. As a result of the government’s policies, the purchasing power parity has increased from USD 5187 to USD 8400. Similarly, policies like initiating economic reforms, the introduction of Goods and Services Tax, Startup India, Make in India, various economic incentives, digital transformation, infrastructural push, and focus on improving Ease of Doing Business have resulted in increased foreign direct investment of USD 630 billion during this period, domestic manufacturing, export of USD 310 billion during this period, and a jump of 79 places in the ease of doing business rankings. The welfare policies have also resulted in people moving out of poverty and the addition of 30 million in the middle class, thus increasing the spending capacity. In a world grappling with wars and economic uncertainty, India has emerged as a beacon of hope. The right time to invest in India is now As India’s national investment promotion agency, we act as a concierge, gateway, and a facilitator to every investor, trader and R&D partner looking to engage with India. The organisation is committed to guiding and assisting both domestic and global investors, strategic planning and execution of policies, incentives and initiatives that foster investment, streamline business processes and support investors throughout their business lifecycle. In the new mandate, Invest India is entrusted with three key responsibilities: Facilitating investments, Facilitating trade growth and working with the investors and supporting them till they see a return on investments, and Identifying and enabling research and development collaborations, with a lot of focus on deep technology and AI across all sectors from electronics, energy, automotive, agriculture and pharmaceutical. Some of the key sectors which are important from India’s present and future growth point of view are as follows: Automobile: India is the fourth-largest manufacturer of motor vehicles and the third-largest automobile market in the world in terms of sales. The government, guided by India’s target of net zero emissions by 2070, is promoting the research, development and adoption of sustainable automotive options to reduce vehicular emissions. Electronics System Design and Manufacturing (ESDM): This sector will play a significant role in India’s target of generating USD 1 trillion of economic value from the digital economy by 2025. The government has also launched a national semiconductor mission to establish India as a global hub for electronics manufacturing and design. Today, all leading manufacturers like Samsung, Apple, and Micron have their production in India. Pharma and biotech: India has emerged as a global leader in research and innovation, driven by a combination of a robust scientific and technological base, growing government support, a strong domestic market, and costcompetitive manufacturing. The biotech sector, with its wide-ranging impact on pharma, agriculture, and industry, has already been recognised as a sunrise sector. Agriculture and Food Processing: Agriculture and allied sectors significantly contribute to India’s GDP. Although the sector has witnessed considerable growth in the last few years, there is still much room for growth. The government is addressing the challenges by providing incentives, improving R&D, strengthening cold chain and supply chain infrastructure, etc. Tourism and Hospitality: India is blessed with rich tangible and intangible cultural and natural heritage, which also increases India’s soft power. As one of India’s largest service industries, the tourism and hospitality sector also plays an extraordinary role in driving the nation’s growth and prosperity. Domestic and international tourists also propel the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. To boost the critical sectors, the government has taken multiple steps, such as formulating vision statements, guidelines, and strategy documents, providing incentives, and allowing even 100 per cent foreign direct investment to provide impetus to the industry. The Production Linked Incentive (PLI) Scheme was announced in 2020 to make domestic manufacturing globally competitive and to create domestic leaders in manufacturing. The scheme provides incentives to companies for increasing their manufacturing Ms Nivruti Rai MD and CEO, Invest India Sector Incentive Financial Outlay Key Starting Materials (KSMs)/ Drug Intermediates (DIs) 5% to 20% for a period of six years USD 925.3 Million and Active Pharmaceutical Ingredients (APIs) Large Scale Electronics Manufacturing 4% to 6% for a period of five years USD 5.46 Billion Manufacturing of Medical Devices 5% for a period of five years USD 456 Million Electronic/Technology Products 1% to 4% for a period of four years USD 976 Million Pharmaceuticals Drugs 3% to 10% for a period of six years USD 2 Billion Telecom & Networking Products 4% to 7% for a period of five years USD 1.62 Billion Food Products 4% to 10% for a period of six years USD 1.45 Billion White Goods (ACs & LED) 4% to 6% for a period of five years USD 831 Million High-Efficiency Solar PV Modules Based on sales, performance criteria, USD 3.2 Billion and local value addition for a period of five years Automobiles & Auto Components Based on sales, performance criteria, USD 3.4 Billion and local value addition for a period of five years Advance Chemistry Cell (ACC) Battery Based on sales, performance criteria, USD 2.41 Billion and local value addition for a period of five years Textile Products: MMF segment and technical textiles Based on sales, performance criteria, USD 1.42 Billion and local value addition for a period of five years Speciality Steel 4% to 15% for a period of five years USD 842.9 Million Drones and Drone Components 20% for a period of three years USD 16 Million The Right Time to Invest in India is Now Ms Nivruti Rai, MD and CEO, Invest India New India, under the leadership of Hon’ble Prime Minister Narendra Modi, is progressing at a fast pace. Today, India is the world’s fifth largest economy with a USD 3.75 trillion GDP and a 7.2% annual growth rate, which is the fastest among the G20 countries. India, aided by demographic advantage and financial sector development, is poised to become a USD 7.3 trillion economy and the third largest in the world by 2030. In the last decade, India has witnessed progress in every aspect of socioeconomic development. As a result of the government’s policies, the purchasing power parity has increased from USD 5187 to USD 8400. Similarly, policies like initiating economic reforms, the introduction of Goods and Services Tax, Startup India, Make in India, various economic incentives, digital transformation, infrastructural push, and focus on improving Ease of Doing Business have resulted in increased foreign direct investment of USD 630 billion during this period, domestic manufacturing, export of USD 310 billion during this period, and a jump of 79 places in the ease of doing business rankings. The welfare policies have also resulted in people moving out of poverty and the addition of 30 million in the middle class, thus increasing the spending capacity. In a world grappling with wars and economic uncertainty, India has emerged as a beacon of hope. As India’s national investment promotion agency, we act as a concierge, gateway, and a facilitator to every investor, trader and R&D partner looking to engage with India. The organisation is committed to guiding and 60 62 74.3 81.9 84.8 46.8 47.3 50.9 52.6 52.9 40 42 44 46 48 50 52 54 56 58 60 0 10 20 30 40 50 60 70 80 90 2018 2019 2020 2021 2022 Working Population % FDI (USD Billion) Increasing FDI and WPR in the last 5 years Foreign Direct Investment (USD Billion) Worker Population Ratio (in %) Table-1 capabilities by spending on plant, machinery, equipment and associated utilities, R&D, and transfer of technology. The 14 key sectors in which the PLI scheme is applicable are as follows: (Refer Table-1) The PLI scheme, along with PM GatiShakti (National Master Plan for Multi-modal Connectivity) and National Logistics Policy 2022, is proving to be a long-term gamechanger for many critical and emerging industries. India is poised for a high-speed growth to realise the vision of self-reliant India and the Amrit Kaal, which envisions India as a technology-driven and knowledgebased economy with strong public finances and a robust financial sector. India is an opportunity waiting to be tapped. And the right time to Invest in India is now! •
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