Pradhan Mantri Make in India
The Indian Government lead by Narendra Modi is leaving no stone unturned to bring development and investment to the country. The government has identified few sectors which it would work on to develop and bring foreign direct investment so that the infrastructural face of the country could be changed and fresh employment generated in the country.
Reasons to invest in Automobile Industry
India is the seventh largest producer of automobile in the world and at the same time it is the 4th largest automobile market by volume. It contributes to 7 per cent of the entire nation’s GDP. It is a good sector for investors since over the next 20 years; India is going to be a big global automotive triumvirate.
India is a big global market for automotives and thus the potential of this sector can’t be ignored. Here, there is both a potential for the product from manufacturing perspective as well as there is a lot of potential in terms of in house sales.
Reasons to invest in Aviation Industry
- India is the ninth largest civil aviation market due to the larger size of population in the country.
- In year 2013 only, there were more than 163 million passengers in India
- The size of international passengers to and from India is expected to be 60 million by year 2017
- India has about 85 international airlines that connect almost 40 countries around the world
- India is expected to be the third largest aviation market by year 2020 and would thus require more than 800 aircrafts in house.
Reasons to invest in Biotechnology Industry
- India is one of the best destinations for biotechnology research both because of the manpower available in India and its long history of medicinal research in older streams like Ayurveda.
- The country boasts of the 2nd highest number of USFDA approved biotechnological plants, only second to USA
- India has already adopted the product patent regime much earlier in the year 2005
- Indian government is putting a lot of funds on increasing infrastructural support for the industry and the entire input from government’s end for biotechnological industry is expected to be USD 3.7 billion between year 2012 and 2017.
- As a matter of fact, India is already the largest product of recombinant Hepatitis B Vaccine and has a lot of potential to be one of the biggest producer of transgenic rice and other engineered food crops and vegetables.
Reasons to invest in Chemicals Industry
- India is the sixth largest producer of chemicals in the world and ranks sixth in Asia in terms of output.
- The chemical industry is one of the key components of the Indian economy with its GDP share being 2.11 per cent.
- The country is third largest producer of agro chemicals in the world and ranks third in terms of polymer consumption
- India’s geographical proximity to the middle-east countries, which are petrochemical producers, makes it an ideal place for chemical production destination.
- Apart from all of these, the government support for chemical industry in terms of infrastructure and R&D is appreciable and that makes India a good choice for investment in Chemical industry.
Reasons to invest in Construction Industry
Construction industry has been booming at a rapid pace in India for the last two decades or so. This is one sector, which is every growing and has a lot of potential in the coming future. Here are few of the points why investment would be a good choice in construction industry in India.
- An overall investment of USD 1,000 Billion is expected in this sector until 2017.
- This sector is the favorite of government and thus it has provided lot of ease to the investors in this segment.
- At present only, the construction section accounts for more than 10 per cent of the country’s Gross Domestic Product
- Over the next 20 years, analysts believe that a total of USD 650 would be required for construction in urban infrastructure.
Reasons to invest in Defence Manufacturing
At present, India is one of the major importers of defence materials and this is why there is a vast scope in investment in this segment. If the doors of foreign investment are opened in defence sector, it would not only help the foreign investors but also boost the indigenous production in India.
The government has made all provisions to ensure that a conducive eco-system of suppliers is built domestically. The government is committed on promoting indigenization, self reliance, up gradation of technology and developing capabilities for exports in defense sector and this is something that would call for more and more investors.
Reasons to invest in Electrical Machinery
India has been trying to build a self reliant and effective power system and is trying to make power reach all the households. A total of 88.5 GW has to be added till 2017 and 93 GW to be added by 2022. This is a huge opportunity and could not be fulfilled with bringing in foreign direct investment.
In house, the Indian manufacturers are now different from what they were in the past and are now becoming more and more competitive in context of manufacturing, product designs and testing facilities. We can see further a large pool of advancements in technologies and in human resources.
On the other hand, India foresees itself as a direct exporter of electrical machinery to its neighboring countries and thus there is a huge gap that has to be filled in terms of infrastructure and research and development.
Reasons to invest in Renewable Energy sector
India ranks fifth in terms of power generation portfolio across the world and it has a power generation capacity of around 245 GW.
Indian, as a country is growing in terms of increasing prosperity, economic growth and growing pace of urbanization. All this is in turn causing a gap between how much power is being produced and how much is going to be required. Thus, there is a huge opportunity in terms of renewable energy sector.
One of the major sources of renewable energy currently being used in India is Hydro-Electricity, however, the costs associated with establishment is high for the government to set up more centers of energy production.
Wind and solar energy in India are still untapped and the entire domain is a void, which needs to be filled with adequate foreign investment. The country has unlimited growth potential in the form of solar photovoltaic industry.
Reasons to invest in Food processing sector
One of the most sustainable and growing sector in any country in times to come is Food Processing. If someone has to ponder over what could be the number one crisis of the world in future, it could be nothing else than food crisis. And in India, with such a huge population with limited resources, the problem is going to be worse.
On a positive side, India has a rich agricultural resource and is the top ranker for certain raw food production like papayas, okra, ginger, chickpea, mangoes, bananas, buffalo meat, goat milk and whole buffalo. On the other hand, India ranks second in product of raw green pea, cow milk, wheat, lentils, tomatoes, tea, cauliflower, gourds, pumpkin, dry onion, ground nut, garlic, potatoes, rice and sugarcane.
With such a diversified and abundant resource base, the country only requires adequate technological infrastructure to become one of the major centers of food processing and thus cater to the world’s food crisis.
Likewise, there are a number of other sectors/industries which are going to be a favorite choice for the investors from abroad and Make in India would only benefit in overall development of the infrastructural strength of the country.
Foreign Direct Investment is something which is not new to India. It draws its origin in India after the liberalization started in year 1991 and since then the country has seen a lot of significant development. Make in India is a step ahead and more focused campaign which would take India from the self sustained economy to an exporting nation.