INDIA SURGING AHEAD 2019

IIII Unarguably, India’s growth narrative has been unicorns globally, with our start-ups offering For any developing economy, infrastructure is the outcome of a bouquet of transformative, innovative solutions for the country and the the backbone of development. And, in the last far-reaching reforms and progress shown world. five years, we have focussed on bolstering our in key sectors of agriculture, services and infrastructure by constructing 40 km of road on manufacturing. This helped to push the country’s It is no surprise then that India attracted a record a daily basis, modernising railways, enhancing growth rate to a robust 7.2% in the fiscal year US$ 239 bn worth Foreign Direct Investments road and air connectivity through our Udaan 2018-19, which is an increase from 6.7 % in (FDI) from May 2014 to June 2018. This period program and setting up 100 smart cities. Our GLOBAL the previous fiscal. Largely resilient to external also witnessed the liberalisation of the country’s US$ 14.6 bn Smart Cities program, which will pressures we did not just generate a high growth FDI policy, allowing most FDI to come through transform 100 urban and semi-urban centres rate, we were also able to contain double-digit the automatic route. This sentiment of investor into citizen friendly, sustainable cities powered inflation and restore fiscal balance. confidence is echoed by the fact that India by state-of-the art technology, is fast gaining figures as one of the two developing countries traction. Our flagship Sagarmala project too aims One of the factors that work in India’s favour to score among the top 10 in A.T. Kearney’s to develop ports along our lengthy coastline for is its demography. Demographics can change Foreign Direct Investment Confidence Index. quicker turnaround in handling of import and the pace and pattern of economic growth in a India became the top recipient of Greenfield FDI export cargo. PARTNER country. And, India’s sprawling 1.3bn population inflows from the Commonwealth as well, as per base offers a significantly large consumer market a trade review released by the Commonwealth In the next five years, we expect our policy driven and a cost-efficient labour force. Moreover, in 2018. growth to make India emerge as an economic 65 % of India’s population fall in the age group of powerhouse across the Asia-Pacific region and India is back on track as the world’s 18 years to 35 years. This young, digitally savvy India made progress in other international beyond. fastest growing economy. We are cohort with rising purchasing power are evoking rankings by moving up to the 40th position on the interest of global corporate giants. Global Competitiveness Index 2017-18. Another I hope this India Surging Ahead document will proud to note that at USS$2.6 trillion, significant development has been that India’s serve as a handbook to understand our vast Investors are drawn to India encouraged by balance of payments has improved and we have country better and provide insights and details of we are the aworld’s sixth largest government initiatives to transform the way strengthened our foreign exchange reserves, all our multiple initiatives, programs and sectors. economy accounting for 15% of of doing business in India. A number of next which stands at US$ 398 bn as of February 2019. generation structural reforms have paved the global growth. And, we will sustain way for a sustainable high growth. The launch Of late, India is an active participant in key global this momentum and surge ahead to of a unified tax system, the Goods and Services conversations. Committed to clean energy, we Tax (GST), the Insolvency & Bankruptcy Code have been at the forefront of global efforts to become an US$5 trillion economy and single-point interfaces have pushed India address climate change issues. As a signatory of up to the 77th position on the 2019 World Bank the Paris Declaration, we helped establish the by 2025. Ease of Doing Business index. The emphasis International Solar Alliance, the first treaty based on indigenous manufacturing through ‘Make inter-governmental entity headquartered in New Sushma Swaraj Union Minister for External Affairs, in India’ program has also sparked investor Delhi. We are also fast moving towards our goal SMT. SUSHMA SWARAJ interest. India has the 3rd highest number of to achieve an overall renewable energy capacity of 175 GW by 2022. 2 3 29.3% 14.6% 3.7% 3.8% Rise in per capita net income Rise in overall imports: CPI inflation Industrial production growth INDIA’S (2014-15 to 2017-18) US$479.5 bn (April-Dec 2018) (April-Dec 2018) (2014-15 to 2017-18) 12.6% @ US$510.4 bn 20% 13.8% Rise in overall exports: Rise in merchandise imports External debt at end-Sept 2018 Rise in forex reserves US$396.7 bn (April-Dec 2018) ECONOMY (April-Dec 2018) (14-15 to 17- 18) 4.8% US$389 bn @ 3.4% of GDP US$900 bn US$2.6 trn Inflation (April-Dec 2018) Budget outlay (2019-20) Fiscal deficit estimated Export target by 2020 Indian economy - 3.1% of global GDP (2017) (2019-20) 7.3% 7.2% 7.4% CONTRIBUTION TO GDP GDP growth projected for 2014-15 to 2017-18 GDP growth estimated in 2018-19 GDP growth projected for 2019-20

Agriculture, industry and services sectors grew by 3.8%, 7.8% and 14.4% 31.5% 54.2% US$33.5 bn 7% 4.6% 7.3% in 2018-19 FDI inflow GVA growth estimated for IIP growth Agriculture Industry Services (April-Dec 2018) (2018-19) (April-Dec 2018)

4 5 2nd largest +74% population base : 1.3 bn Steadily improving literacy INDIA’S rate

8th largest 53.8% in Science/Engg graduate Labour participation rate DEMOGRAPHIC population (2017) STRENGTH Empowered with unique demographic advantages, India is racing to be among the most developed economies in the next decade. BY 2020 BY 2030 India’s young workforce is gearing up for playing a major role in: 29 years - average age in India 32 years - average workforce age

• Driving economic progress • Improving labour productivity World’s youngest population India’s workforce will have an • Increasing domestic manufacturing average age of 32 years against • Enhancing revenue from services 47 mn surplus workforce in India that of 43 years in China and 39 • Bolstering indigenous innovations years in USA • Enhancing India’s purchasing power 6 7 HIGHLIGHTS OF BUDGET 2019-20

EASE OF DOING +US$10.5 bn income +7% sectoral growth, with support to farmers under a separate Department of PM-KISAN policy Fisheries to aid 14.5 mn livelihoods 100 mn workers in the BUSINESS unorganised sector to US$980 mn, all-time high, receive pension benefits allocation for MSMEs given by under the PM-SYM policy the Export Promotion Cell A World Bank ranking credits India 29 Indian states’ and 7 UTs’ ranked by Ease Invest India : Investor facilitation cell US$44.7 bn earmarked of Doing Business. Launched by Central established to guide, assist and handhold Single window clearance with an improved environment for for defence and security: for ease of shooting films doing business Government in 2018, along with the World investors during the entire life cycle of a Bank business Highest ever allocation extended to Indian filmmakers 65 points crossed by India in the last 4 US$33.5 bn of foreign direct investment (FDI) 7 Ease of Doing Business problems being years, to reach 77th rank on World Bank’s A National Artificial inflow reported during April to December 2018 resolved using technology, under a grand Ease of Doing Business 2019 report challenge launched by PM Narendra Modi Intelligence Portal to be US$396.7 bn worth of total exports reported developed as part of a 25+ leading policy initiatives undertaken by over April-December 2018-19, recording Indian Government since 2014 to facilitate Government initiative on AI 13.8% growth from the previous year economic growth Top 50 in Ease of Doing Business: India’s 20+ Central Government services integrated target for 2020 with the e-Biz Single Window IT Platform 8 9 Biotechnology Education India has one of the largest India is among the world’s top 12 networks of higher education biotechnology destinations institutions in the world and MAKE IN is focused on improving Chemicals primary, secondary and higher education India’s chemicals sector covers 80,000 products expected to INDIA reach US$ 300 bn by 2025 25 key sectors have been coverd under the Government of India’s Electrical Make in India initiative Machinery Construction India’s installed electricity India needs investments of generation capacity is reported over US$ 700 bn by 2022 in at around 350 GW Agriculture Auto Components infrastructure construction 2nd in the world in terms of farm Original Equipment output, agriculture is the backbone Manufacturers contribute 2.3% Electronic of Indian economy, contributing Defence of India’s GDP, employing over 3 majorly to the country’s GDP Systems mn people Manufacturing India, one of the world’s largest India plans to spend US$ 130 bn electronics markets, to grow to on military modernization over US$ 400 bn by 2025 Automobile Aviation the next 5 years Indian auto industry is the world’s India is currently the world’s 4th largest, manufacturing 25 mn fastest growing and 3rd largest vehicles annually domestic civil aviation market 10 11 Food Processing Railways Textile Indian food processing industry Mining India’s rail network, the 3rd India has emerged as the only accounts for 32% of the nation’s Indian mining industry, which largest in the world, spreads over place where handloom fabrics total food market produces 95 minerals, is 115,000 km and moves are produced on a commercial estimated to reach US$ 126 bn 23 mn people daily scale by 2025 IT-BPM IT-BPM industry is expected to Renewable Energy Thermal Power grow to US$ 350 bn by 2025, from Oil and Gas India’s total thermal power rd India is ahead of schedule US$ 167 bn in 2017-18 India, the world’s 3 largest oil capacity of over in setting up 175 GW of new market has been steadily opening 223 GW represents 64% of its renewable energy capacity by the sector to FDI total capacity Leather 2022 India’s leather industry has steadily matured from a raw Pharmaceuticals Roadways Tourism material market to exporter of India, the world’s largest supplier Government’s Bharatmala India ranks 3rd in WTTC Travel and value-added products of generic drugs, is a leading program will set up over 84,000 tourism Power and Performance drugs R&D centre km of highways by 2022 ranking

Media & Port and Shipping Space Wellness Entertainment India has 12 major and 200 Indian Space Research India’s AYUSH market, valued at Indian M&E industry is expected notified minor and intermediate Organisation has emerged as over US$ 10 bn, is expected to to grow to US$ 39.7 bn by 2023 ports, with more coming up a leading satellite launching grow to US$ 21 bn by 2020 from US$ 22.3 bn in 2018 agency globally

12 13 The Goods and Services The Merchandise Initiatives Tax (GST), an unified nation-wide Exports from India Make in India has single tax regime that replaced 17 indirect empowered indigenous Scheme (MEIS), introduced in taxes and a host of cesses, has expanded manufacturing September 2018, simplified procedures for POLICY-DRIVEN India’s tax base and strengthened traders exporting goods from India to avail the financial ecosystem, while aiding Digital India has boosted export incentives. This promotes Ease of productivity uptake of e-Government Doing Business in India services The Insolvency and ECONOMIC Skill India has driven skill Aadhaar biometric Bankruptcy Code (IBC), development in varied effective December 2016, has introduced system, an identity mapping tool, sectors market-determined and time-bound for critical economic and government framework for efficient resolution of functions, bringing unparalleled Startup India has empowered GROWTH outstanding debt owed to institutional transparency and efficiency in the system. grassroot entrepreneurship lenders This has bolstered state reforms Incredible India promotes India as must visit, must NITI Aayog has been set up to drive The Indian Government has launched a number National Intellectual experience country Property Rights (IPR) national growth, involving Central and State of path-breaking policies to fuel growth Governments. Its many ongoing projects policy launched in 2016 to create a include the National Mission on Artificial conducive ecosystem for innovation and Intelligence as well as one on the holistic creativity not only in terms of IP awareness development of Indian islands and creation, but also commercialization and enforcement

14 15 INFRASTRUCTURE Bharatmala Pariyojana +US$14 bn Railway aims to build over 84,000 km of new highways across India by 2022 an investment of over Station Modernisation US$110 bn to involve private entities through Indian Railway Station Development Corp (IRSDC) TO PROPEL Smart Cities Mission Swachh Bharat Mission aims to set up 100 sustainable urban centres with budget of over US$30 bn to drive focuses on sanitation, waste management, water economic development supply and other development projects across India

OPPORTUNITIES Sagarmala Programme Industrial Corridors aims to build over 600 marine and inland Amritsar Delhi Kolkata Industrial corridor India is putting in place the infrastructure to enable unparalled development waterway and related projects with a budget Bengaluru-Mumbai Economic Corridor of over US$125 bn Chennai-Bangalore Industrial Corridor Delhi–Mumbai Industrial Corridor 175 GW Installed Visakhapatnam–Chennai Industrial Corridor Renewable Capacity targetted by 2022 to add to the national grid UDAN Scheme and aid 100% electrification Airports Authority of India (AAI) will connect 22 airports under this regional connectivity scheme in the 1st phase

16 17 th INDIA’S 77 on World Bank’s Ease of Doing No.1 recipient of Greenfield Fastest growing Business 2019 ranking. 65 points Foreign Direct Investment among the major economy in the crossed by India over the last 4 years Commonwealth block of world, as per the World Bank and 53 countries over 2003–2016 th International Monetary Fund (IMF) 5 largest global manufacturer, India PROGRESS was ranked 30th on the World Economic No.1 emerging market for global th Forum’s Future of Production Report partner investment, as per Emerging 126 position in per capita 2018 Market Private Equity Association GDP among +200 countries - IMF’s (EMPEA) 2017 World Economic Outlook Report

7.6% GDP growth estimated for IN GLOBAL India in 2019, according to UN World India’s sovereign Outlook for India remains Economic Situation and Prospects 2019 report bond rating, raised by largely positive, led by Moody’s in 2017 after a gap of 13 years, to Baa2 from Baa3 robust consumption, investment and th reforms as per UN’s WESP 2018 report RANKINGS 58 in the World Economic Forum’s One of the emerging economies of the future, India is 2018 Global Competitiveness Index seen as an attractive partner by other nations of the globe who seek to benefit from Inda’s potential

18 19 • Mining – Coal and lignite; metal Top investing nations Highest ODI outflows & non-metal ores; Oil and Gas Mauritius, Singapore, Japan, the UK, exploration Manufacturing, financial services, the Netherlands, the USA, Germany, retail, logistics, agriculture and • Industrial parks Cyprus, France and the United Arab mining, community services, energy RISING • Airports Emirates and water, construction and others • Construction • Telecom Top FDI sectors services, • Defence manufacturing computer software and hardware, India’s Overseas FOREIGN • Non-banking finance and asset telecommunications, infrastructure Direct Investment management companies development, trading, automobile, (ODI) Cumulative ODI outflows • Credit agencies chemicals, pharmaceuticals (from April to Dec 2017) • Pharmaceutical, Bio-tech, construction and power INVESTMENT Medical Devices India’s FDI inflows were the highest ever in the last calendar • Greenfield & Brownfield projects US$7.3 bn Top FDI regions Cumulative ODI outflows year, with a number of new mergers and acquisitions. • Trading – B2B and B2C Mumbai, New Delhi, Bengaluru, • e-commerce Food processing Chennai, Ahmedabad, Hyderabad, Leading FDI destination BPI Ranking: US$33.5 bn FDI inflow • Single-brand retail Kolkata, Chandigarh, Kochi, Jaipur US$16.6 bn owing to steady policy amendments India : 1 (Apr-Dec 2018) • Real estate broking services Cumulative ODI (financial commitment) USA : 50 • Railway infrastructure Top 10 ODI China : 65 14.6% rise in overall imports to US$ 479.5 bn • Broadcasting (Apr-Dec 2018) destinations st • Civil aviation Mauritius, Singapore, USA, UAE, 1 rank Netherlands, UK, Switzerland, Russia, on the Baseline Profitability Index (BPI) US$6 bn corpus for National Investment and Infrastructure Fund 100% FDI Jersey, British Virgin Islands allowed in 92% of sectors including: 20 21 INDIA SECTOR The Indian economy is driven by 3 main categories, namely Agriculture, Services and Manufacturing. A number of sectors or industries are covered under these 3 main categories. For the purpose of this document, 25 key sectors have been identified as those which are surging ahead and have the potential to form the pillars of one of the world’s largest economies in the years ahead.

22 23 AGRICULTURE INDIA Government Support 100 mn plus Soil Health Cards distributed Ranked 2nd in the world in terms of farm output, Soil health mobile app launched to help agriculture is the backbone of Indian economy, farmers contributing majorly to the country’s GDP. 20 15 46 22,000 Gramin Haats for direct purchase of agricultural commodities from the farmers Demographically, it is the broadest economic agri-climatic regions of the major climates soil types eNAM initiative launched to provide an sector, playing a significant role in the socio- in the world can be electronic online trading platform economic fabric of the country. experienced POLICIES POTENTIAL Paramparagat Krishi Vikas Yojana ‘Pradhan Mantri Annadata Aay SanraksHan India expects to double farm income by 2022 developed in the North East Abhiyan’ (PM-AASHA), to ensure fair prices for 3 times increase in capacity in food processing Minimum support price notified for certain farmers sector crops Electronic National Agriculture Market National Food Security Mission being (eNAM), to create a unified national market for Increased investments in infrastructure, such as FOOD CROPS implemented in 638 districts of 29 states INDIA’S PERFORMANCE agricultural commodities irrigation, warehousing and cold storages Maize - 19.3 mn tonnes Micro Irrigation Fund Agriculture Export Policy to increase India’s Food Processing industry is poised for huge No 1 globally with highest net cropped area Millets - 340 K tonnes agricultural exports to US$ 60 bn by 2022 growth US$ 274 bn Gross Value Add (GVA) for the Pulses - 8.7 mn tonnes programme to mentor start-ups agriculture sector in 2018 AGRI-UDAAN Agri infrastructure including farm roads Investment and to connect them with potential investors Production base of 285 mn tonnes Agricultural credit sector set for growth Agri-prenures set up agri-based processing 100% FDI in marketing food products and food units with VC funds of US$ 234.3 mn in 2018 US$ 38.21 bn agricultural exports from India in FY18 PLANTATION CROPS product e-commerce under automatic route Digital innovations Coffee -320 K tonnes 2nd largest producer of wheat, rice, fruits and Storage and warehousing facility MoU signed for cooperation in agriculture vegetables, sugarcane, cotton and oilseeds Coconut - 1.42 mn tonnes Transport logistics and allied sectors between India and Iran and with Uzbekistan 2nd in global production of fruits and vegetables Tea - 1.2 mn kgs Agri tech Seed technology 6th largest food and grocery market in the world Rubber - 774 K tonnes Agricultural machinery th largest exporter of agricultural products 9 Organic farming US$ 3.1 bn of spice exports in 2017-18 CASH CROPS No 1 producer of mango and banana Tobacco - 778 K tonnes PROGRAMS No 1 producer of spices, pulses, milk, tea, cashew Jute - 9.9 mn bales Development of mega food parks and jute 93.8 mn tonnes of rice grown in 2016-17 * HORTICULTURE * Leveraging the Farmer Producer Organisations Fruits - 97 mn tonnes 2017-18 (FPOs) 93.5 mn tonnes of wheat produced in 2016-17 Vegetables - 1.7 mn tonnes 2017-18 Water management initiatives 362.3 mn tonnes of sugarcane produced Developing the start-up ecosystem 32.1 mn bales of cotton produced * http://www.mospi.gov.in/statistical-year-book-india/2018/177 24 ** http://pib.nic.in/newsite/PrintRelease.aspx?relid=183145 25 US$ 200 bn turnover expected by 2026 PROGRAMS PERFORMANCE 12% contribution to GDP expected as a AUTOMOTIVE COMPONENTS Manufacturing low cost electrical vehicles US$ 51.2 bn current revenue result of policy reforms India’s auto-components sector is an turning into a global automotive designing 3 mn technically trained workers US$ 816.98 mn worth opportunities in Voluntary fleet modernization program important pillar of its economy. The sector and manufacturing hub. The sector’s trained US$ 9.2 bn revenue from the domestic automobile components sector Setting up automotive training institutes, auto which accounts for 2.3% of India’s GDP and highly skilled manpower is one of its main aftermath industry comprising tyres, battery and Shift towards electric, electronic and hybrid design centres, special auto parks and virtual SEZs brake parts currently is set to become the 3rd largest in advantages. India’s proximity to markets such automobiles will open up new opportunities Power electronics & motors, Systems integration, US$ 13.5 bn total value of India’s automotive Battery management systems the world by 2025. Having backward and as ASEAN, Japan, Europe and Korea are added exports in 2017-18 R&D and testing infrastructure. forward linkages, the automotive sector is fast advantages. 4% share in India’s exports POLICIES US$ 19.29 bn FDI inflows: April 2000 – June 2018 100% FDI under automatic route and no PPP based industry investments in R&D and development of commercially viable technologies 160 countries import components from India, restrictions on import-export including USA, Germany, Italy, Turkey, UK, National Auto Policy Bangladesh, Brazil and Mexico FAME (Faster Adoption and Manufacturing of Government Support (Hybrid &) Electric Vehicles) India Scheme to No restriction on import and export POTENTIAL promote manufacturing of electric and hybrid R&D incentives for industry and AUTOMOTIVE COMPONENTS INCLUDE vehicle technology and to ensure sustainable private sponsored research 18.3% 23.9% 5x growth in next 10 years growth th 150% weighted tax deduction on scientific 4 largest component manufacturing industry by National Electric Mobility Mission Plan Drive transmission Suspension Body/ Chassis 2026 research in R&D centers Automotive Mission Plan (AMP) 2016-26 Steering Braking Interiors US$ 100 bn growth expected by 2020 Individual state incentives  Contribution to GDP will go up to over 12% Electricals Rubber components Growth in Growth in US$ 80- US$ 100 bn growth in export expected  Around 65 million incremental jobs to be Export incentives by 2026 Electronic components Consumables Turnover Exports created Area based incentives US$ 32 bn by 2026 expected from the domestic Engine components Cooling systems aftermath industry Investments Sanand Auto Cluster Project - Ahmedabad 17.8% 9.8% Invention Factory - Maharashtra INDIA: A GLOBAL HUB FOR AUTO COMPONENTS Automotive Manufacturing Unit - Lucknow, UP Technology to curb vehicular emissions - 10-25% 40% INDIA Maharashtra Growth in Growth in Automotive Suspensions Project - Pitampur, MP lower cost advantage of global engineering and imports auto components Imports Aftermarket compared with Europe and R&D activities undertaken in from China, Germany, Japan, S Automotive Component Project - Maharashtra Latin America India Korea, USA, Thailand, Italy, UK, Czech Republic and France 26 27 INDIA’S POTENTIAL PROGRAMS GOVENMENT SUPPORT AUTOMOTIVE R&D incentives for industry and private sponsored research India’s Automotive Sector enjoys favourable to set up export-oriented production hubs. India currently accounts for 40% of the 3rd largest automotive market in terms of Prospects Weighted tax deduction of 150% of factors, such as availability of skilled labour India’s research and academic institutions are volume, by 2026 automotive sector’s total global engineering Manufacturing passenger vehicles, expenditure incurred on scientific No 1 in shared mobility by 2030 at low cost, robust R&D centres and low-cost currently driving disruptive mobility solutions and R&D spend worth US$ 31bn. It has a 7% 2 wheelers, 3 wheelers and commercial research in R&D centers 15% CAGR growth to reach US$ 135 bn by 2020 vehicles steel production. Global auto majors have like electric mobility and self-driving cars. India share in India’s GDP and employs 19 million Individual state incentives with and US$ 300 bn by 2026 Manufacturing low-cost electric vehicles been ramping up investments in India to cater aims to reduce its carbon footprint by 33-35% trained, skilled people. regards land at concessional rates, 72 vehicles per 1000 population by 2026 for safe short-distance urban commutes power supply and tariff and financial to the growing domestic demand, as well as by 2030 and envisions 100% electrical mobility 5 auto hubs act as a base for export to South Participation in voluntary fleet incentives to leverage India’s competitive advantage by 2030. East Asia (SEA), Middle East and North African modernization program Export incentives (MENA) regions Setting up automotive training institutes, Area based incentives 5x hike in exports in the coming years design centres, parks and virtual SEZs for auto components R&D centres set up at a cost of US$ 388.5 mn to INVESTMENT be on par with global standards Power electronics & motors, Systems INDIA’S PERFORMANCE integration, Battery Management Systems Sanand Auto Cluster Project Growth in Growth in Growth in Immense opportunities for manufacture of Ahmedabad electric and autonomous vehicles R&D and testing infrastructure US$ 74 bn sector The Invention Factory exports domestic domestic PPP based investments in R&D of No 1 two-wheeler and three-wheeler commercially viable technologies through a Maharashtra production sales manufacturer in the world Hybrid Annuity Mode Automotive Manufacturing Unit POLICIES Lucknow No 1 tractor manufacturer in the world Technology development, demand 100% FDI under automatic route development, pilot projects and EV 2nd largest bus manufacturer in the world The National Auto Policy envisions India to be charging infrastructure No 1 in production and sales of automotives 16.12% 3rd largest heavy truck manufacturer in the world 7.28% 7.01% National Electric Mobility Mission Plan 4th largest car manufacturer in the world to encourage reliable, affordable and efficient 7th largest commercial vehicle manufacturer in EVs 2017-18 CAGR (2013-18) CAGR (2013-18) the world Faster Adoption and Manufacturing Of (Hybrid &) Electric Vehicles In India (FAME) 7.08% increase in CAGR in domestic automobile production New Green Urban Transport Scheme to promote low carbon sustainable public transport 25 mn vehicles manufactured in India currently system 3.5 mn vehicles exported 4.3% share in exports US$ 19.29 bn FDI from April 2000 to June 2018 28 29 AVIATION INDIA’S PERFORMANCE One of the fastest growing industries in India, in India will open up tremendous opportunities US$ 1.66 mn FDI No 1 226.80 mn $ 950 mn the Aviation sector is poised to be the growth for investment in infrastructure development & between April 2000 Fastest growing aviation passengers travelled to Maintenance, Repair & and June 2018 market in the world India and in India in 2018 Overhaul (MRO) industry at engine for future progress. It is a vital sector upgradation and manpower. With its large pool of present for linking businesses, bringing people together engineering talent and low labour costs, India also and promoting tourism worldwide. In the next has the potential to become a global aviation hub two decades, the growth of air passenger traffic for MRO (Maintenance Repair and Overhaul). 181.72 mn 45.08 mn 14.1 % 8 mn domestic passengers international growth over the last 5 jobs supported by the passengers years in passenger traffic aviation sector currently

1.43 mn 0.30 mn 2.41 mn US $ 72 bn domestic aircraft flown international flights to tonnes of freight carried contribution to India’s GDP and from India by the aviation sector

India has 464 airports 125 airports owned by 5 Indian carriers and and airstrips Airport Authority of India 81 foreign carriers (AAI)

78% of domestic 22% of international India is connected to passenger traffic passenger traffic most major cities and managed by AAI managed by AAI countries

30 31 Government Support INDIA’S POTENTIAL POLICIES PROGRAMS Viability gap funding to airline operators operating in unserved and underserved Prospects US$ 120 bn investment by Government of India 100% FDI is permitted under the automatic locations, on routes ranging up to 800 km in airport infrastructure and aviation navigation route in Non-scheduled air transport services 300 business jets, 300 small aircraft and 250 Government approved 17 Greenfield airports 3rd largest aviation market globally by 2020 helicopter services and seaplanes, MRO and helicopters to be added to the Indian fleet Ground Handling Services. in the country, to be executed and financed by 11.4 MT freight traffic on Indian airports US$ 2.58 bn Navi Mumbai airport the respective airport owners at an estimated 49% FDI allowed under automatic route in expected by 2032 6 greenfield airports in Andhra Pradesh under investment of around Rs.30,000 crore scheduled air transport service and domestic 800 aircraft - India’s expected fleet size by 2020 PPP model scheduled passenger airline. Air SEWA mobile application launched 250 brownfield and green-field airports to be Airport modernisation in non-metro towns and Indian aircraft Manufacture, Repair and Overhaul Initiatives like allows State operational by 2020 the North East region WINGS-2017 (MRO) service providers are exempted from Governments to market themselves to Airline Airport modernization projects by AAI M&A activities on the increase customs and countervailing duties Operators US$ 2.32 bn investment by GoI for expanding National Policy on Civil Aviation MRO facilities development existing terminals and constructing 15 new Policy on Regional and Remote Area Air Development of aviation in the North-East : Investments terminals Connectivity Guwahati as an inter-regional hub and Agartala, Airport Project Phase-II US$ 1.2 bn growth in MRO by 2020 Imphal and Dibrugarh as intra-regional hubs Chennai, Tamil Nadu Airport Authority of India Startup Policy Personal aviation by corporates and individuals Special Economic Zone (SEZ) Aerotropolis Regional connectivity scheme of to MRO Complex Project UDAN model to increase revenue from retail, connect 56 unserved airports and 31 unserved Jewar Airport, Uttar Pradesh advertising and vehicle parking, security helipads equipment and services Private Cargo Complex Project, NABH Nirman, announced this year, aims to Jewar Airport, Uttar Pradesh expand airport capacity by more than five times Airport Project Maintenance Repair and Overhaul Services Dholera, Gujarat Policy

32 33 BIOTECHNOLOGY INDIA’S PERFORMANCE POLICIES Department of Biotechnology is shaping the sector have been the major drivers of this sector. The 3rd largest biotech destination in the Asia Pacific Region 100% FDI under the automatic route for into a premier precision tool for the creation country offers cost-effective manufacturing No 1 supplier of affordable vaccines greenfield pharma and under the Government route for brownfield pharma of well-being and wealth. India has become a capabilities as compared to other manufacturing No 1 producer of BT Cotton in the world 100% FDI under the automatic route for the No 1 producer of recombinant Hepatitis B vaccine hub of biotech research and production and economies. World-class engineering, funding, manufacturing of medical devices 2nd highest number of US Food & Drug Administration attracted large global investment in terms of FDI, mentoring, hand-holding and infrastructure The Bioenergy Roadmap – Vision 2020: (USFDA)-approved manufacturing plants outside the US partnerships and technology transfer. India’s support are added incentives to partner with India. Towards viable green and clean technologies for 3% share in global biotechnology industry educated talent pool and its abundant resources bioenergy security One of the top 12 destinations for biotechnology in the National Biotechnology Development world Strategy -To focus on building coherence, 20 countries and international philanthropic connectivity and synergy between disciplines organizations partner with India National Guidelines for Stem Cell Research 30 bio-incubators and biotech parks Biotechnology Industry Research Assistance Focus Areas Sector Revenue +523 USFDA approved drug manufacturing facilities Council (BIRAC)- To empower emerging biotech +800 biotechnology companies driving global enterprises partnerships BioNEST – Providing cutting edge access to the R&D strengths on par with the global bests best bio-incubation environs 57.10% 64% 18% Top destination for clinical trials, contract research & National Intellectual Property Rights Policy to Basic Medical Agricultural manufacturing expedite critical IPR filings research biotechnology biotechnology Open Access Policy of Dept of Biotechnology & Dept. of Science & Technology

Annual Industrial Bio-pharma Bio-services growth revenue share revenue share Food and Human Resource International nutrition Development Collaborations

14% 3%

Animal Bioinformatics Bioresources, Biotechnology Environment and Bio-energy Bio-agri revenue Bio-industrial share revenue share 34 35 POTENTIAL PROGRAMS Projects Biotechnology Park US$ 354.7 mn worth of investment opportunities Clinical studies and drug research Bangalore New biotechnology clusters, biotech Development of medical devices Synthetic Organic Chemicals Project incubators, TTOs, and bio-connect centres R&D activity around bWiosimilars Vatva, Gujarat Preventive, therapeutic and diagnostic tools Secondary agriculture research Drug & Surgical Consumables Unit for major infectious diseases Biotech parks and infrastructure Lucknow, Uttar Pradesh Can be a major producer of transgenic rice and Pharmaceutical Park GM vegetables Centres of Excellence and Innovation in Biotechnology Chaygaon, Assam 175,000 sq. ft. facility planned to support 50 Active Pharmaceutical Ingredients world class bio-incubators Research Resources, Service Facilities and Platforms Visakhapatnam, Andhra Pradesh US$ 100 bn target to be achieved by 2025 Rapid Grant for Young Investigators Biotech Parks Biofuel technology development for alternate Kalamassery & Kochi, Kerala energy in transportation Special Programmes-North-East region Horizon 2020 (biggest EU Research and Hybrid seeds, including genetically modified Women Scientist Scheme Innovation programme) seeds Programme of Cooperation with Swedish Drug discovery and clinical trials Governmental Agency for Innovation Medical devices manufacturing Government Support Systems Biosimilars Indo-Korea Collaboration in the area of 150% tax deduction on R&D Secondary agriculture Biotechnology and Bioeconomy US$ 371 mn in Union Budget 2018-19 Indo-Japan collaborative research centre 30 bio-incubators and biotech parks established called DAICENTER and supported 100 Intellectual Property Rights 104 new startups, 346 companies, 509 projects including 115 collaborative projects supported through BIRAC 175,000 sq. ft. bio incubation space to support 50 world class bio incubators by 2020 5 University Innovation Clusters and 1 regional innovation center created 15 new biotechnology incubators 3000 start-ups to be incubated

36 37 POTENTIAL PROGRAMS Govenment Support CONSTRUCTION 99 cities identified, with an outlay of US$ 31.38 bn Smart City Mission to be implemented through The construction industry in India, valued segment covers areas such as water supply, US$ 650 bn investments in urban infrastructure Technologies for of low cost housing Special purpose Vehicles (SPV) at UD$130 billion is among the 12 champion sanitation, healthcare, urban transport and over next 20 years Green building solutions US$ 11 bn for 500 cities approved under AMRUT sectors identified by the Government of India. schools. The sector witnessed implementation 100 smart cities to be developed by 2020 Integrated townships US$ 61.53 mn for twelve heritage cities identified A home for every Indian by 2022 This key focus sector comprises real estate of landmark reforms such as GST, RERA, Ind Warehousing facilities under HRIDAY 5 industrial corridors planned and urban development segments. Real estate AS115 and IBC, post which there was increased Co-working spaces powered by advanced IT US $ 2 bn allocated under Union Budget 2018-19 spans residential, office, retail, hotels and FDI into India. 6 mega ports planned infrastructure, high speed connectivity and IoT to Housing and Urban Development Corporation enabled leisure parks, while the urban development 25 railway stations re-development Incentives for developing SEZ/EMCs/other 12 cities to be developed under National Sustainable and environmentally friendly sectoral clusters building material Heritage City Development and Augmentation Area based incentives Yojana Buildings for retail, commercial, entertainment rd and hospitality sectors 3 largest construction market globally by 2025 Investment INDIA’S PERFORMANCE POLICIES 99 Smart Cities Residential complexes and townships

2nd largest employer in India 100% FDI under automatic route in projects Kiru Hydro Electric (HE) Project (624 MW) by Chenab Valley Power Projects Private Limited (M/s 2nd largest FDI in 2018 for operations and management of townships, malls/shopping complexes, and business CVPPPL) in Jammu & Kashmir US$ 24.87 bn FDI in Construction Development constructions India and Japan infrastructure development in sector from April 2000 to June 2018 100% FDI is allowed under the automatic route India’s north-eastern states 9% of India’s GDP construction for urban infrastructures Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme US$ 90 bn allotted for infrastructure GST to create uniform tax structure across India to achieve 100% household electrification development in 2018-19 Real Estate Regulatory Authority (RERA) for Green Energy Corridor Project along with other US$ 739 bn revenue by 2022 and US$ 1 trillion regulation and transparency wind and solar power projects by 2025 Smart Cities Mission: ‘Smart’ Solutions that Telecom projects US$ 1 tn investment in infrastructure enable a good quality of life to its citizens Pradhan Mantri Awas Yojana (Urban) across 44 mn people employed Industrial Corridors: 5 Industrial Corridors India 8163251 houses built under Pradhan Mantri across the of the country Awas Yojana (Gramin) houses between 2017 and Atal Mission for Rejuvenation & Urban 2019 Transformation (AMRUT) for basic services Pradhan Mantri Awas Yojana – To provide a home for every Indian by 2022

38 39 DEFENCE MANUFACTURING INDIA’S PERFORMANCE POTENTIAL PROGRAMS Host to the 2nd largest armed forces in the world, and manufacturing. India offers huge a captive domestic market, but also has the 3rd largest defence spender in the world after the US$1tn by 2025: potential of the defence Government Support the capability to produce defence equipment is opportunities for reputed Original infrastructure to double as a manufacturing US and China manufacturing sector 90% funding by Government and preference to an important strategic requirement for India. Equipment Manufactuters (OEM) from hub, and a base for exports. Through the Make US$ 7.3 bn worth ongoing DRDO projects US$ 4.53 bn worth contractual obligation to be MSMEs met in 5-6 years Huge resources are being allotted to strengthen around the globe to forge joint venture in India initiative, the government has opened 2.30% GDP spent on defence US$ 15.4 mn Technology Development Fund US$ 0.7 bn allocation for modernisation Initial to 15 years, this capability. The sector is pitching for joint partnerships. As the world’s 3rd largest the industry for private sector participation to US$ 309 mn exports in 2016 validity of IL extended US$ 130 bn opportunity in the 7-8 years further extendable up to 18 years for existing venture partnerships in defence technologies defence spender, the country not only offers encourage indigenous manufacturing. 10,000 micro, small and medium entrepreneurs who make 80 % of the components Partner with foreign companies for joint and new licenses US$ 317 mn worth domestically produced ventures, technology transfer arrangements Issue of security manual for domestic defence defence platforms, equipment, and spares and tie-ups companies exported to over 28 countries in 2015-16 TOT (Transfer of Technology) Maintenance to Flexibility in relation to nomination or change in 30% offset requirement for procurement of Indian Industry partners offset partners post signing of contract equipment in excess of US$ 307.69 mn IDDM (Indigenously Designed, Developed Reduction in indigenous content requirement to Defence manufacturing in India today and Manufactured) introduced to encourage 30% in Buy (global) bids where an Indian firm/JV 15% of international arms includes: 30% of its total defence budget spent on capital No 1 arms importer in acquisitions indigenous design, development and is bidding for the proposal Arms and ammunition manufacturing of defence equipment the world imports is by India 60% of requirements are met through imports Income Tax for non-residents reduced to 10% Tanks Supply chain outsourcing from 25% 343 Industrial Licences (ILs) covering 206 Armoured vehicles and heavy vehicles companies for manufacture of a wide range of Investments Wassenaar Arrangement Fighter aircraft and helicopters defence items issued to private companies Indigenous defence products Akash Surface to US$ 62.8 bn, for defence membership for exchange of Warships, submarines 40 FDI proposals/ Joint Ventures approved in for POLICIES Air Missile System, Dhanush Artillery Gun system Missiles, ammunition, electronic equipment manufacture of various defence equipment and Light Combat Aircraft unveiled 100% FDI in defence sector: Up to 49% under in Union Budget 2018-19 information on transfers of Earth moving equipment US$ 5.12 mn FDI received in the defence sector Innovation for Defence Excellence (iDex) from Apr 2000 to Sep, 2017 automatic route; FDI above 49%, through conventional weapons and dual- Special alloys and special purpose steels Government route where it is likely to result in innovation hubs across the country US$ 278.5 mn exports from Ordinance Factory access to modern technology Infrastructure Development Manufacturing use goods and technologies Board (OFB) & DPSUs and the private sector till Cluster & Park-Pune & Dholera December 2017 Procurement policy governed by the Defence Procurement Procedure US$ 15.4 mn allocated to set up Technology 80% of supplies made by OFB in 2016-17 was for Development Fund for R&D. the Indian Army Offset policy to leverage capital acquisitions to develop the domestic defence industry 2 defence industrial corridors in the country in Tamil Nadu and Uttar Pradesh Grant of industrial licenses streamlined Defence Production Policy 2018 to promote domestic production by public sector, private sector and MSMEs

40 41 POTENTIAL POLICIES Government Support E-COMMERCE National Digital Commerce Policy 2018: Focuses on ensuring safe digital transactions India’s e-commerce enterprises have rapidly US$ 200 bn is projected value of e-commerce 100% FDI permitted under automatic route in through the use of ICT, identifying piracy, hacking market by 2026 B2B ecommerce companies and in marketplace made deep inroads into the country’s consumer and enhancing confidence in purchasers and model for B2C under automatic route market. The growth has been fuelled by a 627m Internet users are expected in India by sellers in digital commerce end 2019 An entity is permitted to undertake retail young demographic profile, rising internet and US$ 1.24bn allotted in Union Budget 2018-19 to trading through e-commerce under certain 12% market penetration expected by 2026 BharatNet project to provide broadband services smartphone penetration, innovation in mobile conditions: compared to 2% in 2019 to 150,000 gram panchayats technologies and investor interest. The increase in A manufacturer is permitted to sell their 350m online buyers by 2025 Udaan, a B2B online trade platform that digital payments is bolstering online sales further. products manufactured in India through connects SMB manufacturers and wholesalers By 2025, digital sales will account for 35% of all e-commerce retail retail sales with online retailers and provides them logistics, A single brand retail trading entity operating payments and technology support, has sellers in US$10-$12bn opportunity likely in rural through brick and mortar stores is permitted to 80 cities and delivers to 500 cities commerce sector in next 4 years undertake retail trading through e-commerce The government has introduced Bharat 50% of e-commerce sales in India are A food product retail trading entity is allowed Interface for Money (BHIM), a simple mobile- INDIA’S PERFORMANCE smartphones to undertake retail trading, including through based platform for digital payments 536m internet users will be using local e-commerce, for food products manufactured languages in India by 2021 and/or produced in India. Investments Walmart invested US$ 16 billion in Flipkart US$ 5.5 bn investment committed by Amazon PROGRAMS India in India Private initiatives Google has invested in Dunzo, a hyperlocal 16 million women in India have been delivery start-up US$38.5bn is Hyperlocal and US$1.7 bn 17% growth US$25 bn have influenced by Google and Tata Trust’s joint Alibaba Group invested US$ 680m in Paytm and project ‘Internet Saathi’, which aims to push has also in Big Basket Internet penetration among Indian rural estimated value travel & hospitality M&A/strategic rate in financial been invested International has invested in India’s women. Ctrip.com of e-commerce segments are Investments in year 2018-19 by PE/VCs in biggest online travel portal makemytrip.com market in attracting PE/VC the sector last 5 years 2017-18 interest

42 43 POTENTIAL PROGRAMS Government Support EDUCATION & TRAINING US$ 13.7 bn budget allocation in 2019 India has the world’s largest population The country’s is focused on accelerating The country is also expanding the scope of World’s largest population of about 500 million Development of education infrastructure US$ 15.44 bn up to 2022 for Project RISE (Revitalising Infrastructure and Systems in in the age bracket of 5-24 years. This is a existing schemes and quality improvement distance education. The Government of India in the age bracket of 5-24 years Transformative and innovative approaches Education) great opportunity for the education sector. in primary and secondary education, while has allocated educational grants for research Skill India Mission aims at skilling 400 million in higher education The Government aims to raise US$ 15.52 bn from Indian youths by 2022 Distance education Currently, India has one of the largest networks in higher education, India aims to raise scholars in most government institutions. private companies and individuals to finance US$ 101.1 bn expected value of sector in E-learning and M-learning improvement of education infrastructure of higher education institutions in the world. enrolment in skills development programs. US$ 35.03 bn expected value of higher Teacher Training Programmes education by 2025. Samagra Siksha Scheme for holistic development Educational software development of school education Skill enhancement Skill India POLICIES IT training and e-learning Beti Bachao, Beti Padao for educating the girl Sankalp, a World bank loan programme for child 100% FDI allowed in the education sector skills and knowledge acquisition Mid Day Meal scheme in schools National Skill Development Mission aims to train and skill through the automatic route since 2002 Singapore supported skills development Schemes for Infrastucture Development of INDIA’S PERFORMANCE 100% FDI in companies engaged in construction- programme in Assam Private Aided/Unaided Minority Institutes (IDMI) 400 million citizens to find jobs by 2022. The initiatives development Saakshar Bharat adult literacy programme under Skill India include: 3rd largest higher education system in the world Free and compulsory education for all children 39,050 colleges in India between ages 4 – 16 through public school Investment system 903 universities in India 22 AIIMS Institutes New Education Policy providing quality US$ 91.7 bn estimated value of sector in FY18 education, innovation and research, aiming to IITs have been allocated US$ 908 bn US$ 1.67 bn FDI between 2000 - Dec 2017 make India a knowledge superpower 50% increase from (Rs.1400 Cr to Rs.2,100 Cr) for 36.64 million students enrolled in higher education flagship programmes such as RUSA in 2017-18. Atal Innovation Pradhan Mantri National Policy for 245% increase in the allocation for quality 25.8% Gross Enrolment Ratio in higher education in improvement programme in Technical Education Mission (AIM) to Kaushal Vikas Skill Development 2017-18. (TEQIP-III) promote innovation Yojana (PMKVY) and Entrepreneurship 15,044 Industrial Training Institutes in the India as of December 2018. Innovation Cell and Atal Ranking of Institutions on Innovation Achievements launched to and entrepreneurship 10 mn plus youth benefitted annually from the Skill assess innovation efforts and encourage a healthy India programme among secondary competition among higher educational institution US$ 2 bn FDI in online education expected to reach school students USD 5.7 billion by 2020 18 M&As worth US$ 49 mn in 2017

44 45 GEMS & JEWELLERY Segments in the Gems and Jewellery Sector: India’s Gems & Jewellery industry is one of India is one of the world’s largest exporters of This sector is upbeat due to increasing the largest in the world. The sector gained gems and jewellery. The industry plays a vital economic growth, employment rate and international repute because of India’s talented role in the Indian economy as it contributes a private consumption in its largest market. craftsmen, low manufacturing costs and its major chunk to the total foreign reserves of the superior practices in cutting and polishing fine country. United States of America accounts for Diamonds Gemstones Pearls Gold Silver Platinum diamonds and precious stones. half of India’s gem and jewellery export.

INDIA’S PERFORMANCE POTENTIAL POLICIES

US$ 1.15 bn FDI in diamond and gold ornaments 12 out of every 14 diamonds sold worldwide US$ 110 bn by 2022 - the expected increase in Bureau of Indian Standards (BIS mark), for from Apr 2000 – Jun 2018 ( DIPP) passes through India gems and jewellery market size purity in carat and fitness, as well as the unit’s US$ 60 bn market size in 2017 No 1 consumer of gold in the world 8.23 mn more jobs by 2022 identification and the jeweller’s identification mark. 15.5% share in India’s exports 523.93 tonnes demand for gold between Jan to 1 – 2 % of fine jewellery segment to come from Gold Monetisation Scheme to deposit gold with 7% contribution to India’s GDP Sep, 2018 online sales by 2022 banks and earn interest. 13% share in India’s commodity exports 80% of the total jewellery market in India Huge potential in mining of gold, diamonds comprises of gold and precious stones 16% industry CAGR (2014-19) 29% of the world’s gold consumption in India VR aided buying experiences are populer 79.84% of the total gems and jewellery exports in value terms between Jan to Sep, 2018 US$ 1.9 bn exports of gold coins and medallions Demand for lab-created diamonds from India 4.5 mn people employed in this sector Development of new manufacturing techniques US$ 28.3 bn imports of gems and jewellery No 1 centre in the world for cutting and Commercialisation of traditional jewellery during Apr 2017-Feb 2018 polishing centre of diamonds designs and techniques. One of the largest importers and consumers of 3rd largest diamond consumer in the world silver 95% global diamond market share 75% of the total gems and jewellery exports from 75% of the world’s polished diamonds exported India by US, UAE, Hong Kong from India +300,000 players in this sector in India 46 47 Government Support sell rough diamonds directly in India Investment PROGRAMS Enhancing the Ease of Doing Business by in exploration and 74% in mining of Smart City, is being developed close 100% FDI reducing the number of mandatory documents 2,000 acres Setting up of Gems & Jewellery Parks diamonds and precious stones to Surat and will house an International Diamond Nodal authority for scrutinizing applications for gold, silver and minerals’ exploration, Trading Hub and a Diamond Bourse Investment in retail brands 100% for laboratories for export of cut and polished mining, metallurgy and processing 5,000 jewellery units at an overall investment Setting up vocational training institutions for diamonds for certification/grading and re- US$ 2.09bn at India’s largest jewellery park at aspiring diamond cutters and jewellery designers Special Notified Zones for consignment import import and export of rough diamonds Ghansoli in Navi-Mumbai Supply/ manufacture of tools for cutting and Exporters of gems and jewellery can import 4 Common Facility Centres (CFCs) set up in processing of stones and jewellery Merchandise Exports from India Scheme / procure duty free input for manufacturing (MEIS) for export of specified goods to specified Ahmedabad, Amreli, Visnagar and Palanpur Establishing Hallmark Centres products for export markets at a cost of 16.15 crore. Setting up Gemology institutes with testing Gems and Jewellery Skill Council of India / Replenishment of (SNZ) opened at Bharat facilities Advance Procurement to train over four million persons till 2022 for Special Notified Zone Precious Metals from Nominated Agencies skilled Manpower Diamond Bourse in Mumbai to ensure direct Manufacturing and selling of lab created Relaxation in gold import norms supply of rough diamond diamonds The Small Scale Industry (SSI) eligibility limit Regulatory framework and taxation to has been raised from INR 12 crore to INR 15 encourage international mining companies to crore

48 49 POTENTIAL PROGRAMS Government Support HEALTHCARE 100% FDI is allowed under the automatic route for greenfield projects up to100% FDI is Healthcare has been one of India’s core sectors, more opportunities in the sector. The country pharmaceutical industry , world-class specialty Public spend on health to be raised to 2.5 % of Hospital infrastructure permitted under the Government route for brwn both in terms of revenue and employment. offers best-in-class healthcare facilities, at a hospitals in tier 1 and tier 2 cities and a large field projects GDP by 2025 Telehealth services With the government rolling out the biggest fraction of the cost in other major markets of pool of well-trained medical professionals are US$ 935 mn allotted for Ayushman Bharat India’s healthcare market to see a threefold jump Alternative medicine publicly funded healthcare plan in the world, the globe. Reduced cost of life saving drugs factors that drive the sector in value to reach US$ 372 bn by 2022 scheme in interim budget 2019-2020 Primary, secondary and tertiary healthcare ‘Healthy India’ – one of the top 10 priorities of India’s has now opened its doors to many and medical devices, the state-of-the-art 16-17% CAGR of the hospital industry infrastructure the government 22-25% growth expected in medical tourism Medical devices Pradhan Mantri Surakshit Matritva Abhyan The Government of India aims to develop India Mobile & Wearable Devices: Glucose monitors, Network of Laboratories for managing as a global healthcare hub exercise trackers & wearables epidemics and Natural Calamities The sector is expected to generate 40 million Internet of Things (IoT)-based tracking & Model Rural Health Research Units (MRHRU) jobs in India by 2030 management systems in the States Telemedicine is a fast-emerging trend in India Artificial intelligence (AI) for keeping health Multi-Disciplinary Research Units (MRU) Home-based care services gaining popularity records & providing timely treatment in Government Medical colleges - Research INDIA’S PERFORMANCE POLICIES US$ 200 bn to be spent on medical infrastructure Assistive Robotic Surgeries, Minimally Invasive Institutions by 2024 Surgeries & predictive diagnosis US$ 13 bn - current value of primary care Sharp reduction in infant mortality and National Health Policy to achieve highest Medical tourism expected to double its value to Robotic Process Automation to improve the industry in India maternal mortality possible level of health and wellbeing for all at all Investments US$ 6 bn industry by 2018 efficiency of healthcare workforce US$ 6 bn medical tourism industry Decrease in HIV infections and AIDS-related ages, through a preventive and promotive health Super Specialty Hospital Project, Lucknow, care Government initiatives like e-Health & Vast opportunities in R&D Uttar Pradesh 74% healthcare expenditure accounted for by deaths Ayushman Bharat New medical institutes for producing world the private sector Ayushmaan Bharat is largest government- Pradhan Mantri Jan Arogya Yojana (PMJAY), to Medical Equipment Manufacturing Project, provide health insurance worth 500,000 to over Technological advancements class doctors, nurses and paramedics West Sikkim 4th largest employer in 2017 funded healthcare programme 100 million families every year Rising demand for improved access to insurance M&A Medical Centre Project, Guwahati, Assam Leading destination for high-end diagnostic Ayushman Bharat, the National Health and affordable healthcare services Harilal Bhagwati General Hospital Project, Protection Mission Increasing expenditure by public and private Mumbai, Maharashtra 150,000 Health & Wellness centers players Mission Indradhanush, to improve coverage of National Health Portal US$ 4 bn current value of the diagnostics unvaccinated and partially vaccinated children in industry in India rural and urban India US$ 5.25 bn FDI received between April 2000 and Central Sector Scheme for Conservation, June 2018 Development and Sustainable Management of 2.14 crore children and 0.56 mn pregnant Medicinal Plants women have been immunised Several diseases including polio, smallpox and guinea worm have been eradicated 50 51 IT & BPM POLICIES PROGRAMS India is one of the world’s favourite IT-BPM delivery centres across the world and are offerings to clients. India’s domestic technology 100% FDI is allowed in Data processing, Software E Commerce ventures and mobile Government Support investment destinations. The country’s unique well-diversified across verticals, such as BFSI, market, including the hardware segment and development and Computer consultancy application development US$ 472 mn allocation for Digital India services; Software supply services; Business selling proposition continues to be its cost telecom and retail to mention a few. IT services, is the fastest growing in Asia- AI, IoT, IoMT, Social, Mobility, Analytics US$ 745.82 mn for realising the potential of and management consultancy services, Market and Cloud (SMAC) based Start-ups competitiveness in providing services, which Pacific. The IT and BPM industry is the largest research services, Technical testing and Analysis India’s champion service sectors Leading Indian IT firms are spearheading IT services, BPM, software product services, under automatic route NITI Aayog setting up a national level are approximately 3-4 times more cost- disruptive technologies using innovation hubs contributor to the total exports of the country companies, shared service centres. programme to leverage AI for development effective than the US. Indian IT firms have 100% FDI is permitted in B2B E-commerce and R&D centres and creating differentiated Digital India promotes mobile connectivity works National Policy on Information Technology throughout the country 2012 aims to increase revenues of IT and BPM 250,000 village councils to be connected via the e-Governance, e-Health, e-Education & industry to US$ 300 billion by 2020. National Optical Fibre Network e-Ticketing projects The government has identified Information IT/ITeS Sector Skill Council (SSC) facilitating Re-engineering of government processes and Technology as one of 12 champion service expansion of the skill workforce along with enabling e-delivery of citizen services sectors for which an action plan is being NASSCOM developed Start-up focus on IoT, Machine Learning, Regulatory support to protect intellectual INDIA’S PERFORMANCE POTENTIAL Artificial Intelligence and healthcare NITI Aayog is going to set up a national level property and strengthen cyber security laws programme that will help in leveraging AI Growing R&D spend in telecom and Establishment of Software Technology Parks of +17,000 IT firms with more than 50 delivery 60% firms use India for testing services before US$ 350 bn by 2025 - expected growth in technology for development work in the country semiconductors India (STPIs) locations in India taking software products global Information Technology and Business Process Special Economy Zones (SEZs) Policy IT Parks Exports incentives under foreign trade policy 640 offshore development centres in over 80 US$ 200 bn cost savings over past 5 years by Management sector countries foreign clients SMAC (social, mobility, analytics, cloud) market National Task Force on IT and Software Incentives for units in SEZ Development +4,200 IT start-ups US$ 1.6 bn spent annually on training workforce expected to grow to US$ 225 bn by 2020. National e-Governance Plan (NeGP) Investments 25% of engineers graduate each year are from in newest technologies Initiatives such as Digital India, Smart Cities, Aadhaar, BHIM and Make in India National Cyber Security Policy 2013 India 3.7 mn jobs created by the sector Coastal Economic Unit Project, Amravati, US$ 126 bn revenues in 2017-18 75% of global digital talent based in India The use of IT in verticals such as retail, State Policies Andhra Pradesh healthcare and utilities 8% share in India’s GDP IT Park, Guwahati, Assam NOFN (National Optical Fibre Network) to 56% in global outsourcing market Intelligent Street Pole for 6 Smart Cities, connect 250,000 Gram Panchayats (village Madhya Pradesh 45% share in services export council) in the country with high-speed 11% domestic market growth makes India Asia’s broadband Setting up a Rural BPO in Assam, Assam fastest growing tech market US$ 20 bn investment to cover mobile Centre of Excellence for Internet of Things has 3rd largest tech-based start-up hub in the world connectivity across India been set up in Bengaluru 13.5% growth from high value client additions in India is emerging as the hub for “Digital Skills” past 5 years

52 53 LEATHER POLICIES PROGRAMS Government Support 30% grant is provided on the cost of plant and 100% FDI permitted through the automatic route Leather technology and best practices machinery for Micro and Small units and 20% India’s leather industry is booming, as leather leather goods, leather garments, leather skilled and trained manpower and comparative exchange The National Manufacturing Policy identifies for other units is one of the most widely traded items in the footwear, handbags, wallets, saddlery and cost advantages is among the top ten foreign leather as a special focus sector for growth and Training and skill development in the sector 50% grant with a ceiling of US$ 19.23 mn for world. Government of India had identified harness are the widely traded leather items exchange earners. The industry is known for its employment generation Raw and processed leather and products export the establishment of Mega Leather Clusters it as a focus sector because of its immense in India. Buffalo skin and goat skin are used consistency in export earnings. The leather product sector is de-licensed, R&D in leather technology Up to 50% of the project cost to address potential for export, growth and employment to make leather that is exported to other facilitating expansion on modern lines environmental pollution caused by leather units generation Raw-hide, processed leather skins, countries. The Indian leather industry with its India has trade agreements with Japan, Korea, ASEAN, Chile etc. and is negotiating Free Trade Agreement with European Union and Australia Schemes for Central Sector Scheme Indian Leather  Human Resource Development. Development Programme  Integrated Development of Leather Sector.  Leather Technology, Innovation and INDIA’S PERFORMANCE POTENTIAL Environmental Protection.  Establishment of Institutional Facilities. 3 bn sq. ft. of leather produced annually 2.80 bn footwear exports High Growth projected for the leather industry  Additional Employment Incentives in the next five years US$ 12 bn in 2017-18 519 mn leather garments exports for Leather, Footwear and Accessories 2nd largest producer of footwear and leather 874 mn finished leather exports 5 bn pairs of footwear by 2020 for the domestic segments. market garments in the world More than 1000 leather exporting companies  Promotion of Indian Brands in Leather, nd 2x increase in domestic market for fashion 2 largest exporter of leather garments in the Employs 3 mn people Footwear and Accessories. world accessories 21 ports ( including sea, air and land) that export th US$ 18 bn domestic market by 2020 5 largest exporter of leather goods & leather Investments accessories in the world US$ 9 bn projected exports by 2020 5 leading importers of Indian leather include Leather & Footwear Cluster Project, 12.9% of the world’s leather production of hides Huge Production Centres in the form of USA, UK, Germany, Italy and France Muzaffarpur, Bihar and skins multiple Mega Leather Clusters (MLC) to be set- Perambur Leather & Footwear Cluster 20% of the world’s cattle and buffalo population up in 5 years Project, Chennai, Tamil Nadu lives in India Leather & Footwear Cluster Project, US$ 5.74 bn export in manufacturing based Kolkata, West Bengal leather in 2017-18 Footwear Design and Development 11% of the world’s goat and sheep population Institute – Banur & Ankleshwar lives in India

54 55 MEDIA & ENTERTAINMENT INDIA’S PERFORMANCE POTENTIAL POLICIES 100% FDI in cable and DTH satellite platforms 3rd largest film industry in the world US$ 33.6 bn anticipated value of the sector by 26% FDI in FM radio and uplinking of ‘News th 2021 The 5 largest media and entertainment market and Current Affairs’ TV channels under the in the world US$ 18.39 bn advertising revenue by FY23 government route India’s Media and Entertainment (M&E) industry is nd 570 mn internet subscriptions - 2 highest in the US$ 394.22 mn digital revenues by 2021 26% FDI under the government route for witnessing strong growth in all segments including world 7.60% CAGR of film industry 2018-2023 uplinking of ‘News and Current Affairs’ TV print, radio, films, television, out of home (OOH), 640 mn Internet users US$ 33.7 bn media market by 2020 channels nd animation & visual effects (VFX), digital advertising, 2 largest online population TV and AGV segments expected to lead 100% FDI under the government route for ‘Non-News and Current Affairs’ TV channels/ music and gaming. The growth drivers of the 99,7000 newspapers industry growth downlinking of TV channels industry include a rapidly growing young population 197 mn television households Digital technologies and e-Commerce offer immense growth opportunities 26% FDI under the government approval route and higher penetration of media, coupled with 800 TV channels for publishing of newspapers and periodicals Regional Entertainment channels have large increased usage of 3G, 4G and portable devices. 7 DTH operators & 6,000 multi-system operators dealing with news and current affairs. potential A recent industry report shows that the sector is 60,000 local cable operators approximately 26% FDI under the government approval route Mobile advertising spends to increase hugely growing at a rate faster than the GDP. While TV has Digital-only film market came into existence in is allowed in the publication of Indian editions of 2018 Teleport hub of Asia foreign magazines dealing with news and current retained its position as the largest segment, digital affairs. 2,000 plus multiplexes Newspapers and niche publications is expected to overtake filmed entertainment in 100% FDI under the government approval route 9% CAGR in India’s media consumption Regional print and local news segment 2019 and print by 2021. China has emerged as the is allowed in publishing/printing of scientific 16.4% growth in the animation industry Radio is a growing market largest overseas market for Indian content. and technical magazines/speciality journals/ 31% growth in VFX industry periodicals. US$ 23.9 bn Media & Entertainment Industry in 26% FDI under the Government approval route FY18 as per a FICCI-EY Report is allowed in publication of facsimile editions of US$ 7.17 bn FDI inflows in the I&B sector during foreign newspapers. April 2000 –June 2018 100% FDI in case of foreign publishing houses US$2.8 bn worth mergers and acquisitions in bringing out facsimile editions of their own 2018 newspapers through wholly owned subsidiary. National Communication policy National Film Heritage Mission Film Facilitation Office Digitising cable distribution sector to attract greater institutional funding Film industry given industry status for easy access to institutional finance 56 57 PROGRAMS Government Support State incentives depending on number of jobs Animation and gaming design and created and area of investment production Animation and gaming: Incentives for units in Television production and television SEZ as specified in the Act advertisements Pan-India Digital India Programmes Film production and post production work National Rural Internet and Technology Community radio stations Mission Print publications and advertising Training in IT skills Multiplex and entertainment zone E-kranti for Government Service Delivery and development Governance Scheme. Joint productions and co-productions of US$ 14.6 mn subsidy for setting up community films and serials radio stations 3D films and digital screens Investments

Film facilitation unit for film shooting in India US$ 730 mn for Digital India US$ 14.6 mn promoting good governance Zero basic custom duty on digital still image video camera of certain specifications Service-tax on services provided to amusement facility, entertainment events or concerts, pageants, non-recognised sporting events Animation and gaming incentives for units in SEZs

58 59 MINING POTENTIAL PROGRAMS Government Support US$ 256 mn allocated in the Union Budget for US$ 126 bn estimated value of the sector in 2025 Growing market for mining equipment, India has large reserves of iron ore, bauxite, production and conversion cost-advantages 2018-19 100 blocks identified by GSI for exploration vehicles and technology chromium, manganese ore, baryte, rare earth in steel and alumina, India also benefits from 100 blocks by Geological Survey of India for NALCO, Hindustan Copper and MECL to and mineral salts. With barely 20% of its its strategic location that enables convenient GoI’s focus on infrastructure & transportation auctioning regional exploration creates opportunities in steel, zinc, and acquire lithium and cobalt mines abroad Monitoring of mining activities using satellite reserves mined, India presents considerable exports to be developed to the fast-developing aluminum Scope for domestic and foreign companies in imagery and capacity building opportunities for future discoveries of sub- Asian markets. Mining opportunities in gold, silver, platinum, upcoming PPP opportunities Integrated IT-enablement system - Online surface deposits. Besides offering significant palladium, rhodium and diamond Mineral blocks auctioned by the States for Core Business Integrated System Growth in power and cement industries Mining or Prospecting cum mining Geological Survey of India signed MoU with Infrastructure projects Strong growth in the automotive sector National Remote Sensing Centre- Indian Plans are on to double steel production Space Research Organization to utilize airborne capacity by 2030-31 hyperspectral data Sustained growth in residential and Mobile app ‘Khan Prahari’ and Coal Mine commercial building industries Surveillance & Management System developed by Central Mine Planning and Design Institute INDIA’S PERFORMANCE Government of India taking steps to boost 2nd largest steel producer in the world 27 lakh line kms of Obvious Geological Potential minerals) reported POLICIES domestic steel sector 3rd largest global producer of coal in FY18 with being mapped by Geological Survey of India 53 blocks were successfully auctioned at a value 676.51 MMT of coal produced Star-rating of mines system introduced of US$ 33 bn National Mineral Policy 2019 Investments rd 3 largest crude steel producer in FY18 with Sustainable Development Framework adopted US$ 16.6 bn mineral production (excluding Mines and Mineral Development and Gevra Open Cast Coal Mining Project, production rising to 102.34 MMT Auction of concessions for major minerals (other atomic & fuel minerals) in 2017-18 Regulation th Chhattisgarh 4 in terms of iron ore production globally with than coal, petroleum and natural gas) for the 13% growth over the previous year. National Steel Policy 210 MMT produced first time Kusmunda Coal Mining Project, Chhattisgarh US$ 14.33 bn FDI inflows into the sector April Mineral Concessions Grant Through Auctions 9th largest bauxite reserves in the world 2101 mines (excluding atomic, fuel and minor 2000-June 2018 Dudhichua Open Cast Coal Mining Project, 100% FDI allowed in the mining sector and M.P, U.P. exploration of metal and non-metal ores under Rampur-Batura Open Cast Mining Project, the automatic route Madhya Pradesh 100% FDI allowed in Mining and mineral separation of titanium bearing minerals and India’s Mineral ores, its value addition and integrated activities 3 4 10 23 55 under Government route

Wealth Atomic minerals Fuel-related Metallic minerals Non-Metallic Minor minerals (including minerals minerals building and other minerals) 60 61 OIL & NATURAL GAS POLICIES PROGRAMS India is the world’s third largest energy sections of the economy. The abundance of Favourable policies like NELP, HELP, CBM Monetization of 67 discovered small fields through international competitive bidding. consumer, a refinery hub and the largest raw material in the country and the robust and OALP to promote investments Construction of another 15,000 km of gas exporter of petroleum products in Asia. The oil domestic market, backed by favourable Discovered Small Fields Policy pipeline network to bolster national gas grid & gas sector is among the eight core industries policies, combine for a future of reduced oil 100% FDI in exploration activities of oil and natural gas fields under automatic route. Increase in India’s refining capacity in India and plays a major role in influencing and gas import dependence and increasing 49% FDI in petroleum refining by Public Investment in export-oriented infrastructure, decision making for all the other important exports. Sector Undertakings (PSU), without any including pipelines and export terminals. disinvestment or dilution of domestic equity in the existing PSUs under automatic route Government Support

Fiscal incentives and exemptions on cess, taxes and customs duties on imports, exploration licenses and movement of goods. State incentives for projects area based INDIA’S PERFORMANCE POTENTIAL incentives for North East India No 1 exporter of petroleum products in Asia US$ 300 bn opportunities to invest in India, as 77 % to 67% reduction in imports of oil and gas Revision of Crude Oil Cess 2nd largest refiner in Asia. the country looks to cut reliance on oil imports by 2022 State incentives by 10 per cent by 2022 3rd largest energy and oil consumer in the world 90 bn cubic meters of gas to be produced by Area based incentives th By 2040, India and China will account for half of 2040 4 largest importer of liquefied natural gas the global energy demand (LNG) Opportunities for foreign Investments and Investments 42.5% rise in domestic oil consumption expected technology partnerships in the Upstream Sector 23 refineries - 18 under public sector, 3 under during 2010-20 Refinery Project, Cuddalore, Tamil Nadu private sector and 2 in a joint venture. 326 cities to be connected with city gas Ennore Petrochemical Cluster Project, Ennore 247.5 MMPTA is India’s current refining capacity distribution network (CGD) by 2022 District, Tamil Nadu 16,771 km gas pipeline infrastructure in the 100 mn new LPG connections by 2019, of which Kakinada Petrochemical Cluster Project, East country in September 2018 50 mn are for BPL households Godavari, Andhra Pradesh US$ 7.00 bn FDI attracted by sector between 600 MMT oil reserves Mangalore Petrochemical Cluster Project, April 2000 and June 2018. 1.2 TMC reserves of natural gas Dakshin Kannada, Karnataka 7.40% - India’s share in LNG imports Nearly 96 tn cubic feet technically recoverable 3.30% - Oil consumption CAGR shale gas resources 2.30% Gas consumption CAGR 244,960 MT by 2021-22- estimated demand for 4.90% LPG sales growth petroleum products

62 63 PHARMACEUTICALS POLICIES PROGRAMS India is the largest provider of generic drugs biotech workforce, scientists, engineers and Indian pharma companies are now venturing 100% FDI is allowed under the automatic route Pharma Vision 2020 aimed at making India a Ayushman Bharat National Health Protection globally. The country is a leading manufacturer managerial talent. India supplies into more into manufacturing more complex for greenfield pharma global leader in end-to-end drug manufacture Scheme has opened up new opportunities of various critical, high-quality, low-cost 50 to 60 % of global demand for several products such as microspheres, liposomes, 100% FDI is allowed in brownfield pharma - The National Pharmaceutical Pricing Alliances with generic companies for 74% under the automatic route and thereafter Policy development of drug molecules pharmaceutical products for both, the Indian vaccines. Affordable anti-retroviral (ARV) emulsions and building the country’s through government approval route Ayushman Bharat to provide hospitalization Conducting R&D of medicament formulations and global market. India’s strengths include drugs from India were a major factor in AIDS capabilities in R&D. North America is India’s National Pharmaceutical Pricing Policy 2012 cover coverage of US$ 7,700 to over 100 for global clients the country’s low cost of production, large patients getting greater access to treatment. largest export market, followed by Africa. Pharmaceutical Promotion Development Scheme million poor and vulnerable families Biosimilars and Specialty drugs manufacturing TB and Kala azar Scheme Health and Wellness centres to provide comprehensive treatment, medication, Implementation of Scheme for Schedule M Government Support essential drugs and diagnostics services, free Compliance of cost Weighted tax deduction of 200% on scientific New IPR policy research and development Reduction in cost of stents and other specific INDIA’S PERFORMANCE POTENTIAL medical devices Life saving drugs at reduced cost 500 different Active Pharmaceutical Ingredients 3rd largest pharmaceutical market by 2020 in 3,000 pharma companies (APIs) manufactured in India terms of incremental growth Investments 10,500 manufacturing units US$ 17.27 bn pharma exports in 2018 US$ 280 bn healthcare market in 2020 No 1 global provider of generic medicines Synthetic Organic Chemicals Project, Vatva, 150 countries import vaccines from India US$ 200 bn to be spent on health infrastructure Gujarat nd 2 highest number of US FDA approved facilities Top 20 global medical device markets Aysuhman Bharat: World’s largest healthcare nd Drug & Surgical Consumables Manufacturing 2 largest pharmaceutical and biotech workforce US$ 37 bn Indian pharmaceuticals sector in 2016 programme launched Unit, Lucknow/Noida in the world Production of bulk drugs, intermediates, drug Manufacturing: Pharmaceuticals, nutraceuticals Pharmaceutical Park, Chaygaon, Assam 4th largest medical device market in Asia and biotechnology products formulations, biologicals, Ayush & herbal Active Pharmaceutical Ingredients Project, 20% of global exports in generics products and surgicals Off-patent drugs: Drugs worth US$ 130 bn will Vishakhapatnam 60,000 generic brands across 60 therapeutic Approval time for new facilities has been go off-patent by FY22 categories sourced from India reduced to boost investments Medical devices: BP monitors, cardiovascular labs, portable anaesthesia machines Medical tourism: Cardiac orthopaedic procedures and other specialized areas Other opportunities: Contract research and manufacturing services industry

64 65 PORTS & SHIPPING POLICIES PROGRAMS Government Support US$ 28 mn allocation made to Ministry of 100% FDI in the shipping sector Port projects at an Investment of over US$ 10 bn Shipping in 2018-19 India, with its 7517 km long coastline and 100% FDI is under automatic route for projects identified ambitious Sagarmala Programme launched US$ 25 mn towards development of major ports 200 plus ports plays a vital role in global related to the construction and maintenance of Specialist terminal-based ports for cargo in March 2017, the Government of India has US$ 21 mn towards development of minor ports ports and harbours requiring special equipment trade. Being strategically located on the also introduced various fiscal and non-fiscal 10-year tax holiday is extended to enterprises US$ 76.92 mn to improve inland water transport, world’s shipping route, the Indian ports & 21 dry port projects under development incentives for enterprises that develop, engaged in the business of developing, internal trade and reduce logistic cost Development of existing & notified waterways shipping industry sustains growth in the maintain and operate ports, inland waterways maintaining, and operating ports, inland 10 coastal economic regions being developed to Leveraging potential of cruise shipping country’s trade and commerce. Along with the and shipbuilding in India. waterways, and inland ports boost Sagarmala Incentives for enterprises that develop, Industrial cities and industrial clusters at Foreign flagged ships allowed, to carry maintain and operate ports, inland waterways selected small ports containers for transhipment and shipbuilding in India Digital transformation in shipping through Revised Model Concession Agreement technologies such as Internet-of-Things approved to make port projects more investor- (IoT), Blockchain, Machine Learning, Artificial friendly Intelligence (AI), Analytics, and Augmented & Project UNNATI to identify opportunities for INDIA’S PERFORMANCE POTENTIAL Virtual Reality improvement in operations of major ports SEZ being built in close proximity to ports 16th largest maritime country in the world 3,200 MMT port capacity of by 2020 Sagarmala Building support infrastructure for ports and 70% of India’s trading in value terms handled 10 coastal economic regions US$ 123 bn to be invested across 415 projects, shipping industry Investments through maritaime transport including: 6 new mega ports to be built under Sagarmala Ship repairing facilities 1301 vessels: India’s fleet strength project Port Modernization and New Port Development Sagarmala 679 MT cargo traffic handled at major ports in 142 capacity expansion master plans for projects Port Connectivity Enhancement Port Project, Colachel, Tamil Nadu 2017-18 worth US$ 14.19 bn Port-Linked Industrialization Vadhavan Port Project, Thane, Maharashtra 485 MT cargo traffic handled at minor ports in Inland waterway sector as an alternative to road Coastal Community Development Port Project, Odisha 2017-18 and rail routes Impact of Sagarmala Programme Port Development Project, Kanyakumari, Tamil 5X growth in traffic in major ports between 2014- Green Channels exclusively for cargo movement Nadu Mobilization of over US$ 61.6 billion of 18, compared to 2010-14 outside custom bonded ports infrastructure investment 3X increase in net profits of major ports between National Maritime Development at an outlay of Double the share of inland and coastal 2014-18 US$ 11.8 bn waterways in the modal mix 64 hours turnaround time at major ports in 2018 Increasing private partnership in port logistics Yield cost savings of US$ 5.3-6.1 bn in logistics Services such as operation and maintenance annually pilotage and harbouring and marine assets such Boost merchandise exports by US$ 110 bn as barges and dredgers Create 4 mn new direct jobs and 6 mn indirect jobs 66 67 RAILWAYS POTENTIAL Government Support The Indian railways operates 21,000 passenger movement of bulk commodities. Increasing POLICIES State incentives on land, power, rates of 476,000 hectares of prime land owned by Indian interest on loans, investment subsidies ns and freight trains every day. Indian Railways is urbanisation and rising urban & rural incomes Railways National Rail Plan -2030 to provide long term special incentive packages for mega projects the world’s 3rd largest railway network under are driving growth in the passenger segment. PPP opportunities in maintenance, prospective to planning by integrating the rail network with other modes of transport Various kinds of export incentives on single management, covering 66000 route There is significant increase in freight traffic, redevelopment of stations, building private exports freight terminals and private container train Foreign Rail Technology Cooperation Scheme kms. Apart from being an energy efficient and owing to rising investments and private sector operations to attract private sector investment Area based incentives for Special Economic economic mode of conveyance and transport, participation. Zones and special areas, such as the North- US$ 130 bn investment envisaged by Indian Policy on Participative Models for Rail east, Jammu & Kashmir, Himachal Pradesh & it is integral for long-distance travel and Railways over the next 5 years Connectivity & Capacity Augmentation Projects Uttarakhand 2 Dedicated Freight Corridors - one on the New export policy for Railways Western route (Jawaharlal Nehru Port to Dadri) 100% FDI under automatic route Investments and another on the Eastern route (Ludhiana to Dankuni) JNPT Rail Connectivity Project 6 tenders worth US$ 1.2 bn, for setting up a PROGRAMS Katghora – Dongargarh New Rail Line country-wide electricity transmission network INDIA’S PERFORMANCE Kharasia- Naya Raipur Durg New Rail Line Redevelopment of 90 railway stations into world- Bullet Train and the induction of semi-high Dedicated Freight Corridor Project rd class transit hubs 3 largest railway network in the world Electric traction of 2367 route kms speed train-sets Diamond Quadrilateral Network of High- 3rd largest railway market, making India 10% of 4th largest rail freight carrier in the world 2148 km old rails have been replaced with new High Speed Rail Corridors Speed Rail the global market 8th largest employer in the world rails up to November 2017 Dedicated Freight Corridors Mass Rapid Transport Systems 3.3. bn tonnes freight traffic in 2030 from 1.1 bn 6 high-capacity, high-speed dedicated freight 23 mn passengers on an average, ferried each tonnes in 2017 Modernisation of railway stations 62 ongoing projects offering investment day corridors opportunities 1 mn new jobs generated by Indian Railways Upgraded coaches Smart Freight Operation Optimization & Real 73,000 railway stations maintained by the sector, E-Ticketing and improved passenger on-board Time Information to monitor freight operations Harness solar energy by utilizing rooftop spaces across India experience through Geographic Information System of railway stations, other railway buildings and US$ 7 bn passenger earnings in 2017-18 land, through the PPP mode in order to use Boosting indigenous manufacturing 1.2 bn tonnes of freight transported during renewable energy New lines, track conversion and doubling 2017-18 Robotics and Industry 4.0 in production US$ 920.21 mn FDI inflows into Railways Related Transforming Indian Railways to a ‘Green’ Components from April 2000 to June 2018 Railway Gauge conversion 9.66% Increase in revenues of Indian Railways during FY07-FY18 1.4 mn people employed directly by Indian Railways

68 69 PROGRAMS Government Support RENEWABLE ENERGY POLICIES Bank loans up to a limit of US$ 2.3 million will be given to borrowers for renewable energy Amendments in Tariff Policy to promote Development of Solar Parks and Ultra Mega Under the Paris Agreement, India pledged that additional forest and tree cover by 2030. India energy sector has the potential to create projects. Renewable Energy Solar Power Projects the greenhouse gas emission intensity of its is working at a super-fast pace to honour its many employment opportunities at all levels, Making roof top solar as a part of housing loan Hydropower policy for 2018-for the growth of Development of power transmission network provided by banks GDP will be reduced by 33-35% below 2005 pledge. The country expects to reach its goal especially in rural areas. With strong push by hydro projects in the country through Green Energy Corridor project Supporting R&D on various aspects of renewable levels, by 2030; 40% of India’s power would be of 40% share of renewables 3 years ahead the government the renewable energy sector National Wind-Solar Hybrid and Off-Shore 100 Smart City projects and 60 solar cities energy generated from non-fossil fuel sources; India of time. India’s potential as a major market has become very attractive, from an investor’s Wind Energy Policy released have been approved Financial incentives for off-grid and would create an additional ‘carbon sink’ of 2.5 for renewable energy, especially solar and perspective. National Mission on advanced ultra- US$ 5.8 bn Green Energy Corridor for optimal decentralized renewable energy systems and supercritical technologies for cleaner coal utilization of wind resources to 3 billion tonnes of Co2 equivalent through wind make this possible. India’s renewable devices for meeting energy needs for cooking, utilisation Off-grid anddecentralized renewable lighting and productive purposes FDI up to 100% is permitted under the energy systems and devices KUSUM scheme for providing 17.5 lakh stand automatic route US$ $ 1.3 bn for setting up 50 Solar parks of alone Solar Pumps with a capacity of 1000MW 40GW by 2020 INDIA’S PERFORMANCE Solarization of 10 lakh grid connected pumps POTENTIAL US$ 5.8 bn Green Energy Corridor being set and installation of1000 MW small solar power up to ensure evacuation of renewable energy plants up to 2MW capacity, by farmers Largest renewable expansion plan globally 27.09 GW from Solar Power- February 2019 Solar 750 GW Upgradation of watermills and micro hydro No 1 in ground based solar power and world’s 9.92 GW from Bio Power- February 2019 Wind 300 GW projects Investment largest rooftop solar plant 4.54 GW from Small Hydro Power- February 2019 Battery packs for electric vehicles Waste to Energy Project – Indore th Bio-energy 25 GW 4 most attractive renewable energy market in 101.84 bn units: Power generation from Small Hydro 20 GW The Indian Railways to cut down emission Waste to Energy Project – Firozabad the world renewable energy sources (excluding large levels by 33 per cent by 2030 Waste to Energy project – Aligarh 4th largest wind power capacity in the world hydro) in 2018 175 GW target by 2022, as per the Paris Agreement Biomass based Power Project 5th in installed renewable energy capacity, as of +US$ 42 bn: Investments in India’s renewable 225 GW is the government’s renewable energy October 2018 energy sector since 2014 capacity achievement aim by 2022 6th largest solar power capacity in the world US$ 7.4 bn: Investments in clean energy in the 8-fold increase in solar capacity between 2014-18 first half of 2018 21% renewable energy capacity as proportion of US$ 3.2 bn FDI between 2015-18 the country’s total energy capacity 7103.28 MW of renewable energy capacity added during 2018-19 76.87 GW cumulative installed renewable energy capacity as on February 2019 35.32 GW from Wind Power - February 2019

70 71 RETAIL INDIA’S PERFORMANCE POLICIES PROGRAMS India’s retail market is at the cusp of growth. The Consumption power of urban Indians has amplified 5th largest retail destination in the world 100 % FDI in multi-brand retail for food Government Support rd products country’s large population base, an upwardly- to the extent that India is billed to be the world’s 3 Among top 3 employers in India GST was introduced as a single unified tax mobile affluent middle-class, evolving consumer largest consumer economy by 2023 10% contribution to India’s GDP 100% FDI under automatic route for single system brand retail trading attitudes, favourable demographics and internet US$ 60 bn current value of organised retail market Government has relaxed sourcing and 100% FDI allowed in duty free shops under US$ 52.75 bn is the value of FMCG market in India investment rules for supermarkets penetration are driving this surge in buying. automatic route Demand for retail space 51% FDI in multi-brand product retail (online Investment US$ 1.42 bn cumulative FDI Inflow between April presence not allowed) under government US retail giant Walmart has plans to open 50 2000 to June 2018 route stores by 2020 77th in the World Bank’s Ease of Doing Business allowed in cash& carry wholesale 100% FDI Swedish furniture retailer IKEA expected to Ranking for 2019 trading under automatic route invest US$ 1.54 billion in India British multinational retailer Marks & Spencer DIFFERENTIATORS IN INDIA’S MARKET has 71 stores in India German sportswear group runs 436 stores and 203 franchise run Reebok stores POTENTIAL Swedish fashion retailer Hennes & Mauritz will open 50 stores investing US$ 0.99mn by 2020 US$ 1 tn by 2020 is the expected value of India’s British firm Dyson to investUS$ 200 mn into 60% of India’s GDP is driven by Unorganized retail market India’s Millennials and Gen Z will retail market India operations over next 5 years US$ 6 tn opportunity by 2030 (World Economic domestic private consumption larger than organized become a major consumption pool Forum figures) One of the most dynamic consumption environments Multinationals expected to invest in warehouses, logistics, accounting,customer services etc creating ancillary jobs in the country 22-25% projected growth of organised retail rd rd 1/3 of India’s consumption 1/3 of India’s consumption 77% of consumers expect an market in 2021 market dominated by food and market dominated by food offering of products and offers that FMCG expected to be US$103.7 bn by 2020 grocery and grocery appeal to their personal tastes 72 73 POTENTIAL PROGRAMS Government Support ROADS & HIGHWAYS 1217 government projects underway The Government of India aims to complete 100% FDI is allowed under the automatic US$ 10.92 bn allocated to Ministry of Road 200,000 km national highways by 2022 route subject to laws and regulations Transport & Highways. It includes US$ 1.77 India has one of the largest road networks in highways and expressways in the country. Several opportunities in efficient operations & Funds to the State Government for bn of revenue expenditure and US$ 9.14 bn of the world. The country also holds the unique Private players are entering the business network management for improving logistics development of state roads capital expenditure. distinction of being the fastest developer of through India’s well-developed Public-Private efficiency Electronic Toll Collection System US$ 82 bn to be invested by 2022 under Bharatmala Pariyojana highways Government of India has launched Partnership (PPP) model. Bharatmala Pariyojana Phase-1 to be Value Engineering Programme to promote major initiatives to upgrade and strengthen implemented at a cost of US$ 82 bn use of new technologies, materials and Economic corridors development - 9,000 Kms equipment in highway projects executed in Investment at US$ 18.46 bn PPP or public funding mode KIM – Talasari NHDP VI Road Upgradation project – Gujarat, Maharashtra Inter-corridor & feeder roads - 6,000 Kms at Automation of Regional Transport Offices US$ 12.30 bn under Transportation Mission Mode Project Peripheral Ring-road Project – Karnataka National Corridors Efficiency – 5,000 Kms at Intelligent Transport Systems (ITS) Vadodara KIM NHDP VI Road upgradation Project - Gujarat US$ 15.38 bn Development of Logistic Hubs enabling INDIA’S PERFORMANCE Border & international connectivity roads - seamless inter-state public transportation Road Upgradation Project Nagapattinam- Tuthukudi – Tamil Nadu 2,000 Kms at US$ 3.84 bn Bidding for National Highways under the No 1 in speed of highway development in the 40km highways construction in India between Coastal & port connectivity roads- 2,000 Kms Toll-Operate-Transfer Scheme world 2018-19 US$ 3.07 bn Restoration/replacement of bridges nd 2 largest road network in the world spanning Project Monitoring Information System Expressways - 800 Kms at US$ 6.15 bn Replacement of level crossings 5.5 million kms, comprising National and State introduced by NHAI 4-laning of 37.03 km Punjab-Himachal Pradesh highways, urban and rural roads Tunnel projects No 1 FDI in Indian roads sector by MAIF 2 Border to Sihuni section at US$ 230 mn US$ 2.8 bn for building rural roads 2019-20 Asset recycling ToT (Toll-operate-Transfer) US$ 1.58 tn – estimated investment in 2019 Government building new expressway on model +200 national highways in India 64.5 % of all goods in the country transported via Greenfield alignment 15% share of GDP on logistics & transportation road 47,447 km roads constructed under Prime 90 % of India’s passenger traffic uses road Minister’s Gram Sadak Yojana (PMGSY) in 2017- network 18. 9,829 km construction of highways in 2018 26.93 km average length of highway constructed per day Highest ever construction of 133 km per day of rural roads in 2016-17 744 projects awarded under PPP 74 75 POLICIES Government Support Investments TEXTILES & GARMENTS Technology Upgradation Fund Scheme, Textile Processing Project, a one-time capital subsidy for eligible Periyapattu, Tamil Nadu The history of India’s textiles and garments India’s industrial output in value terms, 2% industry and offer a wide variety of products to 100% FDI under automatic route benchmarked machinery Development of Garment Park, Bhatauli , industry dates back several centuries. This of the GDP and 15% of the country’s export market within India and around the world. The Scheme for Integrated Textile Parks (SITP) to Integrated Skill Development Scheme to Jabalpur, Madhya Pradesh provide the industry with state-of-the-art world- sector comprising yarn, fibre, processed fabric earnings. The industry’s strengths lie both in country also enjoys a competitive advantage enable the textile processing sector in meeting class infrastructure facilities Cotton Yarn Project, and apparel is one of the largest in the world. the hand-woven sector as well as mill sector. in terms of skilled manpower and cost of environmental standards through appropriate Sindhudurg, Maharashtra Technology Mission for technical textiles technology A vast raw material base and manufacturing Cotton, wool, silk and jute, synthetics and production. Silk Fabrics Project, Budget allocation increased by 14% to Infrastructure Development Schemes for strengths across all value chains, India’s Textile a new array of innovative fabrics including Nashik, Maharashtra US$ 1.1 bn Integrated Textile Parks, (SITP), Integrated and Garments industry contributes to 7% of technical textiles form the backbone of the Amended technology upgradation fund Processing Development and Mega Textile New Mega Clusters, scheme Clusters Bareilly, Lucknow and Kutch and J&K Free trade with ASEAN Silk Samagra scheme to promote R&D and 65 textile parks enhance brand image of Indian silk globally Special package to boost exports, attract investments and create employment INDIA’S PERFORMANCE POTENTIAL PROGRAMS opportunities 10% to 20% increase in basic customs duty No 1 cotton producer 9% of the world’s total consumption of technical 10% expected sector CAGR (2016-2021) Manmade fiber and filament manufacturing for 501 textile products, to boost indigenous No 1 weaving capacity in the world textiles US$ 123 bn by 2021: Projection for the Textile Value added and specialty fabrics production 2nd largest cotton exporter 197775 looms were upgraded and and Apparel industry manufacturing Rebate of state levies disbursed to exporters US$ 36.5 mn released 2nd largest spindle capacity US$ 300 bn by 2024: Projection for exports Fabric processing units for all kind of natural, Capacity building programmes through NIFT 73 Yarn Bank projects approved synthetic and specialty textiles US$ 2.97 bn FDI during April 2000-June 2018 17 mn skilled workers required by 2022 Indiasize, a national sizing survey to 21 e-commerce entities engaged for online Apparel US$ 39.20 bn in 2018 exports from textiles from Increase in organised retail conducted by National Institute of Fashion marketing of handloom products India reached Growth sectors – branded garments, man-made Retail brands Technology (NIFT), New Delhi 34.9 mn bales of raw cotton fibres & technical textiles Innovations in silk production Area based incentives India Handloom Brand launched Growth in construction sectors to raise demand Investment in retail operations Jute ICARE programme for farmers for non-clothing textiles 3,400 textile mills with an installed capacity of 50 Technology transfer Promotion of Wool sector mn spindles Rising exports of textiles and apparels Skill Development Revival of NTC 2.7 mn power looms operational Value additions in textiles and garments Commercialisation of Indian handloom National handloom development +100 countries import fabrics, textiles and Knitwear programme for skill up-gradation, product and design development clothing from India India as a hub for handloom Weaver Mudra scheme loans to weavers 60% of exported fabric produced on power Exports of finished products looms Textile equipment 76 77 INDIA’S PERFORMANCE POLICIES Government Support TOURISM & HOSPITALITY Tax incentives by the State and Central 1st in the world in terms of direct contribution to Government India is a 365-day tourist destination which mountains, hill stations, deserts, palaces, tourism economy in less than a decade. That employment (2016) India’s National Tourism Policy to promote India as a 365 day tourism Assistance in large revenue-generating projects attracts tourists through its numerous curated traditional cuisine and myriad shopping the average tourist to India spends one of rd 3 in WTTC Travel & Tourism Power and destination Public Private Partnerships (PPPs) in experiences, resorts, homestays, hotels, experiences. the highest figures in the world of tourism is Performance FDI Policy allows 100% FDI in tourism and infrastructure development world heritage sites, national parks, shrines a matter of much interest to investors in this th The World Travel & Tourism Council expects 7 largest tourism economy in the world allied businesses Schemes for capacity-building of service providers for worship, fairs and festivals, beaches, sector. th India to become the 4th largest travel and 9 largest in cultural resources and business VISA Policy is conducive to investments in Incentives for setting up projects in special areas travel in the world this sector 14.6 mn jobs created by the tourism industry Investments between 2014 -18 Amaravati Theme Park - Amaravati 9.4 mn foreign tourist arrivals between Jan-Nov, Gorai Entertainment Park - Mumbai 2018 registering a growth of 5.6% GROWTH Samuka Tourism Park – Puri 2.3% 13.4% 12% 10.2% 41.5% US$ 22.3 bn Foreign Exchange Earnings (FEEs) PROGRAMS between Jan-Oct, 2018 Dadasaheb Film City – Mumbai Foreign tourist GDP from Forex earnings e-Visas PARAMETERS Domestic Prospects Nirmal Nag Riverfront - Nagpur tourist visits arrivals intl tourism 73 theme-based circuits covering 30 States POTENTIAL and Union Territories Integrated development of iconic tourist sites and pilgrimage destinations India offers the INDIA’S NICHE TOURISM OFFERINGS 250 tourism infrastructure related projects following types worth US$ 5.8 bn 9 projects launched under the Swadesh Darshan Scheme in Manipur, Arunachal 5 mega economic tourism zones to attract of e-visas to 167 global tourism players Pradesh, Andhra Pradesh, Nagaland, Chhattisgarh and Madhya Pradesh countries: Udaan Scheme to include tourism infrastructure development ‘Adopt a Heritage’ project, conducted in collaboration with the Ministry of Culture and ƒƒ e-Tourist Visa Destination circuits and restoration of heritage the Archaeological Survey of India sites ƒƒ e-Business Visa Cruise tourism Eco-tourism Adventure tourism Rural tourism Golf tourism Holistic development of islands program – Public-Private-Partnership programs for Andaman & Nicobar islands ƒƒ e-Conference Visa. Infrastructure improvements Inauguration of Indian Culinary Institute in ƒƒ e-Medical Visa Improved support functions such as packaged NOIDA and Tirupati to preserve, document and tour services, cab services and recreational promote Indian cuisine ƒƒ e-Film Visa facilities at tourist locations ƒƒ e-Medical Attendant Visa Polo tourism Wellness tourism Film tourism Medical tourism MICE (Meetings,Incentives 78 Conferences & Exhibitions) 79 Economic Diplomacy and States Division, Jawahar Lal Nehru Bhawan, 23 – D, Janpath, New Delhi – 110011 www.mea.gov.in 80II