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10/2020

INDIA Contact: Rajesh Nath, Managing Director Please Note: Jamly John, General Manager Telephone: +91 33 40602364 1 trillion = 100,000 crores or Fax: +91 33 23217073 1,000 billions 1 billion = 100 crores or 10,000 lakhs E-mail: [email protected] 1 crore = 100 lakhs 1 million= 10 lakhs The Economic Scenario 1 Euro = Rs.85

Economic Growth The government is likely to tweak its newly proposed € 1176 million (Rs.10,000 crore) scheme aimed at boosting domestic manufacturing of active pharmaceutical ingredients (APIs), widening its scope to also encourage exports of these raw materials for drug makers. The scheme, which seeks to cut dependence on China for APIs, was meant to cater to only domestic demand.

However, in a recent meeting held by government think tank Niti Aayog with the Ministry of Health and the Department of Pharmaceuticals, it was decided to expand the scope of the scheme to allow exports. The government departments are also of the view that the move will help generate revenue. ’s pharmaceuticals industry is the third largest in the world but is dependent on China for crucial raw material. The new scheme seeks to reduce this dependency and ensure adequate domestic supply of bulk drugs and APIs.

Enthused by initial response of industry with regard to the production-linked incentive (PLI) scheme, Ministry of Economic Affairs mentioned that the government is considering an extension of the scheme to 7-8 more sectors to promote domestic manufacturing. With the view to make India a manufacturing hub, the government recently announced the PLI scheme for mobile phones, pharma products and medical equipment sectors.

There are about 7-8 new sectors where the PLI scheme would be extended as per the Ministry. The PLI scheme, unlike other schemes, is an outcome- and output-oriented programme where manufacturers get cash incentives over 5-7 years for production. The response received was overwhelming from the mobile phones industry which has given a lot of confidence that there is demand in the world now, to have a diversification of supply chains, and India can definitely take advantage. For global manufacturer, the country provides a large domestic market other than the exports potential.

The Finance Ministry report released expressed cautious optimism on India’s growth story. It expects the economy to regain pre-Covid levels by the end of the current fiscal. However, it does caution about a possible second wave of the pandemic which could affect recovery. The report, prepared by the

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444 2 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Economic Affairs Department (DEA), also indicated expenditure to go up as there is improvement in revenue especially that from the Goods and Services Tax (GST).

It acknowledged that continuous improvement in forward-looking RBI indices of consumption and business sentiment for the next year augurs hope of a strong economic rebound. This is also corroborated by IMF’s October 2020 projection of 8.8% real GDP growth of India in FY2021-22, the highest globally.

The report has come after most high-frequency economic indicators, barring foreign trade, showed an encouraging sign. Purchasing Managers’ Index (PMI) for services released recently had crossed 50 reading for the first time after February and reached 54.1 in October. Manufacturing PMI clocked a decade-high reading with 58.9. With the onset of the festive season, overall consumption is expected to see further uptick in the coming months enhancing the prospects of faster economic normalisation.

It noted moderation of export in October, primarily driven by weak oil exports, but this has not affected cargo movement related to various products. The expected current account surplus during the year is likely to provide a cushion to increased spending in the economy. With net FPI inflows staying robust in October, the rupee stood strong at about € 0.86 (Rs. 73) to the USD on the back of forex reserves now comfortably settled in excess of half a trillion dollars, it said.

There is a disturbance in the fiscal space due to shortfall in revenue collection been highlighted. It may be noted that in April, the government categorised all Ministries and Departments into three categories from a cash management point of view. No expenditure was capping proposed for the first category (which includes health and agriculture beside others), but it placed a quarterly limit of 20% and 15% for the other two categories, respectively. All these are applicable till December 31.

Now, with some improvement, there are indications that there will be some relaxation during the fourth quarter. Given that there are indications of India’s GDP growth in the current year being higher than currently projected by various agencies, the fiscal space is set to widen to accommodate other priorities of the government, GST collection was over € 11765 million (Rs.1 lakh crore) in October.

India and the US have announced five important pacts including the Basic Exchange and Cooperation Agreement for Geo-Spatial Cooperation (BECA), which will allow India access to crucial data and images, and an agreement for the electronic exchange of Customs data between the Postal Operators in both countries.

US Secretary of State and Secretary of Defence met with their Indian counterparts Ministry of External Affairs and Defence Ministry. The officials stated their intention to fast-track projects under the Defence Technology and Trade Initiative, jointly promote access to Covid-19 vaccines, check cross-border terrorism, and reaffirmed their commitment towards an open, reliable and secure internet in the joint communiqué issued after the meeting.

The Ministers welcomed the virtual convening of the India-US Information and Communication Technology (ICT) Working Group on October 1, 2020. They emphasised fostering cooperation between their industry and academia for an open, secure and resilient supply of strategic material and critical infrastructure and to independently evaluate the risk associated with deployment of emerging ICT technologies, including 5G networks.

To counter the global pandemic, the Ministrys’ sought to jointly promote access to high-quality, safe, effective and affordable Covid-19 vaccines and treatments on a global scale. The pacts announced also include an MoU for technical cooperation in Earth Observations and Earth Sciences; an arrangement extending the duration of the MoU between India and the US on cooperation with the Global Center for Nuclear Energy Partnership, and a letter of intent for cooperation in the area of alternative medicines.

India and Latin American economic major Chile deliberated upon expanding their Preferential Trade Agreement and creating Joint Business Council to promote multi-faceted business and trade links as India hopes to expand its Indo-Pacific construct. The Pacific Alliance seeks closer ties with India and the Alliance can be an anchor for India in one geographical part of the Indo-Pacific region. India and Chile have signed the Double Taxation Avoidance Agreement in March 2020; and two sides are working to sign a Bilateral Investment Protection Treaty. In addition to this, the further expansion of the PTA was discussed.

Chile is today the fifth largest trading partner of India in the Latin American region. Chile has a huge base of natural resources which includes copper, tin, forest resources. India and Chile are also working on a MoU for cooperation on health and export of generic medicines from here to Chile. The two sides are focussing on agricultural cooperation, which includes an agreement on Agriculture as well as market access issues for products of mutual interest.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

3 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Industry Scenario

Infrastructure

World’s longest highway tunnel opened in Himachal Pradesh The Prime Minister recently inaugurated the Atal Tunnel at Rohtang at an altitude above 3,000 metres in Himachal Pradesh. The tunnel would provide new strength to the country’s border infrastructure. The 9.02 km-long-tunnel, built by the Border Roads Organisation (BRO), is the world’s longest highway tunnel and connects Manali to Lahaul-Spiti valley. It provides all-weather connectivity to the landlocked valley of Lahaul-Spiti. The tunnel reduces the distance by 46 km between Manali and Leh and the travel time by about 4 to 5 hours. It is expected to boost tourism and winter sports in the region. The tunnel, also significant from the military logistics viewpoint, will provide better connectivity to the armed forces in reaching Ladakh. It was completed after spending € 376.5 million (Rs. 3,200 crore). In the last six years, multiple connectivity development projects in the border areas have been completed and work on several others is being done.

Union Ministry inaugurates and lays foundation for projects in Andhra Pradesh Union Ministry inaugurated and laid the foundation stones of highways projects worth € 1834 million (Rs 15,592 crore) in Andhra Pradesh. These include 16 highway projects stretching over 1,411 km. It connects Amaravati, new capital city of Andhra Pradesh, with Anantapuramu of Rayalaseema Region, and provides a major connectivity between NH-44 and NH-16 which are lifeline in Andhra Pradesh. 5,000 km of national highways are being developed as a part of the Bharatmala Pariyojana in the state. In addition, 400 km of port connectivity roads will also be developed under the programme. Another 2,371-km project costing € 4016 million (Rs. 34,133 crore) are at the initial stages. These include 10 projects with a road length of 713 km at a cost of € 2301.05 million (Rs. 19,559 crore) by National Highways Authority of India (NHAI).

AAI to develop Greenfield Airport in Arunachal Pradesh's Hollongi Airport Authority of India (AAI) has undertaken the work of constructing a Greenfield Airport at Hollongi, 15 Kms from Itanagar in Arunachal Pradesh with estimated cost of €76.57 million (₹650 crore). The project includes development work i.e. construction of airport pavements, air side work, terminal building, and city side works.With an area of 4100 sqm, the new domestic terminal building of the Hollongi Airport will be able to handle 200 passengers during peak hours. Equipped with eight check-in counters, the terminal building will have all modern passenger facilities. The terminal will be an energy efficient building provisioned with Rainwater Harvesting system and sustainable landscape. The development work also includes construction of ATC Tower cum Technical Block, Fire station, Medical Centre, and other ancillary works. Itanagar, the capital of Arunachal Pradesh is situated at the foothills of Himalayas. Presently, no airport exists in vicinity of Itanagar, the closest one being Lilabari Airport which is at 80km in the state of Assam and takes around three hours to reach by road.

SAIL plans to start commercial production of HH rails in FY21 Steel Authority of India Limited (SAIL) plans to commence commercial production of head hardened (HH) rails in this fiscal. HH rails are special rails used in high-speed freight corridors and metro rail projects, SAIL has set up facilities for production of HH rails at the new Universal Rail Mill (URM) at its Bhilai Steel Plant (BSP) in Chhattisgarh, and the cold trials for the same have already been completed. SAIL-BSP successfully rolled and supplied the R 260 grade vanadium alloyed special grade prime rails to the national transporter. SAIL has set up a new 1.2 million tonne per annum universal rail mill (URM) at a cost of about €141.18 million (₹1,200 crore), as part of its modernization programme for Bhilai Steel Plant, to produce different types of rails. The 130-meter rail rolled at URM is the world's longest rail in a single piece. BSP produces the cleanest rail steel in the world with hydrogen content below 1.6 ppm at Tundish level. Equipped with secondary refining units, the steel melting shops at BSP have the capability to produce a wide variety of steel. SAIL is now able to meet the entire requirement for rails of and further strengthen the partnership with IR. VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

4 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Automobile

TN government rolls out 100% tax exemption for e-vehicles In a major boost to the adoption of electric vehicles in the State, the Tamil Nadu government has passed on order for 100% exemption of motor vehicle tax for battery-operated vehicles (BOVs). The State government had earlier issued orders for a 50% concessional rate of lifetime tax in respect of battery-operated two-wheelers and four-wheelers of non-transport vehicles. All BOVs, both transport and non-transport (EVs), are exempted from payment of motor vehicle tax under the Act from November 3, 2020 to December 31, 2022. After establishing itself as a hub for automotive manufacturing, the Tamil Nadu government has been making several efforts to emerge as an attractive centre for electric mobility. Last year, it launched a separate policy for EVs, paving the way for fresh investments by several players into EV manufacturing and associated areas.

Greenfuel eyes trebling revenues by 2023 Greenfuel Energy Solutions, a manufacturer of CNG kits, is looking at tapping into the country’s drive towards electric vehicles to more than treble revenue over the next three years. The company has set up a lithium-ion battery pack manufacturing plant in Manesar, Haryana. Greenfuel plans to increase investments in the facility to increase capacity for li-ion batteries for three-wheelers and two-wheelers, sales of which it expects to grow manifold by 2023. The company declined to disclose the investments planned over the next 2-3 years. Electric mobility in India will gain acceptance in three-wheelers, then two-wheelers and cars. In the electric three-wheeler segment, used for last-mile logistics, running costs are already economical. Greenfuel expects better sales in the second half of the financial year. However, revenue for the year is likely to decline on account of the Covid-19-induced lockdown. They had recorded peak revenue of € 10 million (Rs. 85 crore) in FY19. Last year, auto sales declined by 18%, their revenues fell 10%. This year, there was a hit because of the outbreak of the pandemic and the subsequent lockdown.

Mercedes-Benz to start local assembly of vehicle range AMG in India German luxury car maker Mercedes-Benz will start local assembly of its performance vehicle range AMG in India. The first Mercedes-AMG product to roll out of the assembly line from Mercedes-Benz India's plant at Chakan in Pune will be the AMG GLC 43 4MATIC Coupe. The decision to locally produce AMG in India underlines Mercedes-Benz's clear road map for the Indian market and our long- term commitment to our Indian customers. They are confident that the launch of the locally produced AMG GLC 43 4MATIC Coupe will drive in value and aspiration for customers and help the model retain its top preference among the discerning AMG customers. Till date, Mercedes-Benz India locally produces Mercedes Maybach S 560, S-Class, E-Class Long Wheelbase, CLA, C-Class and the GLA, GLC, GLC Coupe, long wheelbase GLE G350d and GLS luxury SUVs. The companies completely built imported cars portfolio includes the V-Class, CLS, C-Class Cabriolet, the G 350d, the EQC and the other products of the AMG range.

Passenger vehicle exports tumble 58% in H1FY21 Passenger vehicle exports from India declined 57.52% in April-September period of the current fiscal year as COVID-19 related disruptions hampered dispatches to various global markets. As per the latest data by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle exports in the first half of 2020-21 stood at 1,55,156 units as compared with 3,65,247 units in the year-ago period. Passenger car exports during the period under review stood at 1,00,529 units, down 64.93% from 2,86,618 units in April-September, 2019-20. Similarly, utility vehicle shipments saw a drop of 29.67% at 54,375 units from 77,309 units in the same period of 2019-20. This can be largely attributed to the COVID-19 related disruptions globally, which has led to closure of plants and dealerships, supply chain disruptions, curfews in cities and interruptions in international trade. However, with relaxation in lockdown norms globally, exports have improved in the recent past and the monthly shipments in second half of the current fiscal are expected to be higher than earlier months. During the second quarter (July-September), PV exports declined by 41.96% to 1,11,555 units as compared with 1,92,193 units in the same period of 2019-20.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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Power

CCEA approves investment for 210 MW Luhri Stage-I hydel project The Cabinet Committee on Economic Affairs has approved the investment of € 213 million (Rs.1,810.56 crore) for the 210 MW Luhri Stage-I Hydro Electric Project located on the Sutlej river. The project will be situated in Shimla and Kullu districts of Himachal Pradesh. This project will generate 758.20 million units of electricity annually. The construction will result in direct and indirect employment to around 2,000 persons and will contribute to overall socio-economic development of the State. The Project Affected Families will be provided with 100 units of free electricity per month for ten years, Himachal Pradesh will benefit with free power worth around € 134 million (Rs.1,140 crore) from the Luhri Stage-I Hydro Electric Project, during the Project Life Cycle of 40 years. The hydel project will be commissioned within a span of 62 months.

NHPC board approves merger of Lanco Teesta VI hydro power project National Hydroelectric Power Corporation (NHPC) board approved a proposal to start merger of Lanco Teesta Hydro Power Ltd into the company. The NHPC had bagged the 500 MW Teesta VI hydro power project under corporate insolvency resolution process. Lanco Teesta Hydro Power Ltd was executing the 500 MW (125 MWx 4) Teesta VI hydro project on Teesta river in Sikkim. The project will supply power at a levelized tariff and is likely to be completed in the next four years. The project will be implemented at an estimated cost of € 676.24 million (Rs. 5,748.04 crore), which includes a bid amount of € 105.59 million (Rs. 897.50 crore) for the acquisition.

Adani Green Energy completes acquisition of 205 MW operating solar assets Adani Green Energy Ltd (AGEL) announced that it has completed the acquisition of 205 megawatt operating solar assets from Essel Green Energy Pvt Ltd (EGEPL) and Essel Infraprojects Ltd (EIL). The assets are in Punjab, Karnataka and Uttar Pradesh. The portfolio is relatively young with an average remaining power purchase agreement life of nearly 21 years. The acquisition marks the first operational portfolio acquisition by AGEL. The company had earlier announced the execution of definitive agreements for the acquisition of Essel portfolio. This is another step towards taking AGEL closer to its targeted footprint of 25 GW of renewable power by 2025. AGEL, a part of the Adani Group, has 14 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties. The company aims to achieve 25 GW of renewable power by 2025 and is committed to contribute to India's Conference of Parties (COP) 21 goals.

Rays Experts commissions 600 megawatt solar projects in Rajasthan Rays Experts have successfully commissioned six solar parks in Rajasthan with a combined power capacity of 600 megawatt (MW). Rays Experts has invested € 352.94 million (₹ 3,000 crore), on the six parks which are spread across 2,500 acres of land, mainly in the districts of Bikaner and Jodhpur, and provide more than 4 lakh houses with renewable energy. Rajasthan has over 15 GW solar plants in the planning stage for the next 3 years and the company is a part of its solar journey. Rays Experts plans on investing €5.88 million (₹ 50 crore) additionally in Rajasthan over the next two years. The Solar EPC (Engineering Procurement Construction) and park developer has a current order book of 250 MW in the state. It is developing around four solar parks in other states as well, three of which have been approved and are in advanced stages of development. The company aims to reach the 1,000 MW installation milestone by the end of 2021.

Share of renewable energy rises to 26% in Apr-Aug this year The share of renewable energy in the country's power mix has increased from 23 % to 26 % in April- August period this fiscal. Green energy's share increased at a time when the power sector witnessed sluggish demand due to the COVID-19 pandemic. The share of renewable energy has increased from 23% to 26% from April to August 2020, Central Electricity Authority (CEA). India will reach the target of carbon emission reduction by 30-33 % before the pledged year of 2030. According to Union Power Ministry, though the country aims at 40% of its installed electricity capacity to be renewable or nuclear by 2030, thermal power will have a substantial share in the power generation mix.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

6 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Paper & Printing

Government measure is a big blow to print As per the Department of Finance office memorandum, the world is increasingly moving towards adopting digital force multipliers for productivity and given the fact that using technological innovations for planning, scheduling and forecasting is known to be economical, efficient and effective, the Government of India has decided that there will be no further activities towards printing wall calendars, desktop calendars, diaries, festival greeting cards and similar materials by all Ministries /Departments /Autonomous bodies and other organs of the government. As per the industry, 2,50,000 printers of the country are already facing the crunch of lockdown, and there is loss in demand from educational institutions due to which many printers were not able to afford their livelihood. The printers look forward to New Year and were eagerly waiting for the orders of calendars and diaries, which is a source of income for the 85% micro and small printers of the country. With this measure, the hope of survival for this key industry is dismal. Meanwhile, the clarion call from the industry is that lobbying, and government pressure needs to be maintained against such schemes.

India begins anti-dumping probe on imports of décor paper, Hydrofluorocarbon Blend from China India has begun an anti-dumping probe on Decor Paper imports from China after ITC Limited alleged injury because of the alleged dumping in the form of increased volume of dumped imports. The Applicant has claimed that its performance has been adversely impacted in respect of lost market share, accumulated inventories and consequent decline in profits, cash profits and decline in return on capital employed, as a result of increase in imports of product under consideration. As per Directorate General of Trade Remedies (DGTR) there is sufficient prima facie evidence that the injury is being caused to the domestic industry by dumped imports. It is also initiating a probe on imports of Hydrofluorocarbon (HFC) Blends from China based on a complaint by SRF Limited. The company has claimed that its performance has been adversely impacted leading to decline in production, sales, capacity utilization and market share, negative return on capital employed and losses. DGTR recommends the duties while the Finance Ministry takes a call on levying them. HFC blends are used in residential air conditioning and heat pumps, commercial air conditioning, commercial refrigeration, transportation refrigeration, and process refrigeration e.g., food processing and chemical manufacturing.

Indian paper industry growing at 6-7% The Indian paper industry is expanding at a rate of 6-7% which would drive the growth of Century Pulp and Paper. The company, one of the largest paper manufacturing companies, is making a foray into retail tissue paper segment and is launching a campaign to create awareness among masses about benefit of using tissue paper mainly in tier II cities. At present in India the per capita consumption of tissue paper is low at 123 grams compared to other countries. Century Pulp and Paper, Indian paper industry has growing by 6-7%, which put a positive impact on our company's growth as well.

ICMR issues advisory for use of paper strip test The paper-strip uses gene-editing technology to identify the genetic material of SARS-CoV-2. The Indian Council of Medical Research (ICMR) has issued an advisory for the use of indigenously developed Feluda paper strip test, which is based on CRISPR-Cas9 technology for diagnosis of SARS- CoV-2, by laboratories. The paper-strip uses cutting-edge Clustered regularly interspaced short palindromic repeats (CRISPR) gene-editing technology to identify and target the genetic material of SARS-CoV-2, the virus that causes Covid-19 in less than an hour. As claimed by the manufacturer, no further Reverse transcription polymerase chain reaction (RT-PCR) based confirmation is required for samples that are confirmed as positive or negative by the CRISPR SARS-CoV-2 test. The test has been developed by the Council of Scientific and Industrial Research’s (CSIRs) Institute of Genomics and Integrative Biology (IGIB), Delhi, and has been validated by the National Centre for Biological Sciences and the Tata Institute of Fundamental Research.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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Ports & Shipping

Chowgule partners with Denmark’s Tuco Marine to build patrol boats Chowgule and Company, a part of the Chowgule Group, has teamed up with Denmark’s Tuco Marine Group for manufacturing advanced patrol boats in India. The 16-meter-long patrol boats, designed as per Tuco Marine´s ProZero concept, will strengthen the company’s existing business of manufacturing composite fibre-reinforced plastic (FRP) boats.ProZero’s new patrol boats are specially designed for law enforcement specialists, crews, and interception teams. The company is looking at exporting boats to South-East Asia and other regions. The need for world-class patrol boats, interceptors, and workboats that are specifically designed for the use of police, coast guards, and the military.

Adani Ports and SEZ completes acquisition of Krishnapatnam Port Co Adani Ports and Special Economic Zone (APSEZ) Limited, India’s largest port developer, announced the completion of the acquisition of Krishnapatnam Port Company Ltd., (KPCL) for an enterprise value of €1,411.76 million (Rs. 12,000 crore). This will result in APSEZ having a controlling stake of 75% in KPCL from the CVR Group and other investors. KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh which has the second largest coastline in India. All APSEZ’s ports handled 223 million metric tons of cargo in 2019-20. This acquisition will accelerate APSEZ’s plans to achieve 500 million metric tons by 2025.

Kolkata Port to pump in € 4.7 million (Rs.40 crore) to push digital adoption The Port Trust (KoPT), rechristened as the Syama Prasad Mookerjee Port, is investing on digital technologies, and has lined up at least € 4.7 million (Rs.40 crore) for various projects to bolster ease of doing business. The port authorities are undertaking an ambitious project to develop an integrated e-marketplace to facilitate coastal shipping. The e-marketplace will be a single-window system for all coastal shipments. It will facilitate an integrated, transparent, and hassle-free online system for the coastal shipping stakeholders. A Radio-frequency identification (RFID)-based port access control system (PACS) is already in place in both Kolkata Dock System and Haldia Dock Complex, for addressing traffic congestion at gates. But now it will go beyond tracking trucks. Now, every container can be located with the same technology in any yard by their owners. To eliminate the paper-based information exchange, the port authorities streamlined the process for adoption of electronic delivery order under the port access control system for import containers.

Director General of Shipping notified as National Authority for Recycling of Ships The Central Government notified the Director General of Shipping as National Authority for Recycling of Ships under section 3 of the Recycling of Ships Act, 2019. As an apex body, DG Shipping will look after the sustainable development of the ship recycling industry, monitoring the compliance with environment-friendly norms and safety and health measures for the stakeholders working in the ship recycling industry. India is looking to double its contribution from ship recycling to the country's GDP to over € 1.7 ($ 2) billion post enactment of the ship recycling Act. It also aims to take direct jobs from recycling sector to about 90,000. Currently, India recycles 70 lakh gross tonnage of ships per annum, while Bangladesh's contribution is 68 lakh gross tonnage. Pakistan scraps ships worth 37 lakh gross tonnage, while China accounts for 34 lakh gross tonnage of recycling. These four countries account for 90% of the ships recycled globally. Post enactment of Recycle Act, India eyes 50%of the global share as many countries will be sending ships here after India ratified the global convention. Hoping for an increase in the business, many recycling plots at Alang are obtaining Statement of Compliance (SOC) with the Hong Kong Convention.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

8 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Garment and Leather

Expecting continuous improvement in leather, footwear exports in coming months The country’s exports of leather and footwear items are expected to see continuous improvement in the growth rate in the coming months on account of increasing demand in global markets. As of now, there is an increase in demand for casual products and lesser demand for formal items, as more people are still working from home. But the industry is optimistic that once the pandemic situation settles down, the overall demand will increase and there will be more opportunities for the sector. The industry should be prepared for unexpected challenges and at the same time, utilise the emerging market opportunities. It which employs 4.42 million people, was also hit by the COVID-19 pandemic. Italy, Germany, Spain, France, the UK, and the US account for about 65% of India’s leather exports.

Gap Inc. and Arvind Fashions to terminate franchise business in India Gap Inc. and Arvind Fashions are parting ways, 6 years after the Bengaluru-based company signed a master franchisee for India and Arvind and US fashion group are currently looking for a buyer for Gap's India business. Arvind, along with the US fashion company, are looking for a buyer for Gap franchisee in India. As next steps, both companies will work out modalities regarding transition of the Gap business. Gap contributed about 4.7% of Arvind Fashions’ consolidated turnover or € 21.41 million (Rs.182 crore) in the fiscal year ending March 2020 with a loss of € 4 million (Rs. 34 crore) before taxes. Over the years, Arvind has been trying to make Gap business profitable by pruning the store sizes and by increasing local sourcing for the brand in India but the Covid-19 pandemic hit it hard with stores shut for months and with dwindling footfalls even after that as consumers shied away from malls and high streets. Arvind Fashions blamed poor business amid the pandemic that is leading to the snapping of ties.

Japanese apparel retailer Uniqlo launches online store in India To deliver across over 17,000 pin codes, apparel retailer Uniqlo launched e-commerce operations in the country in a bid to make the brand accessible pan-India. The company’s launch of the online store comes at a time when the pandemic has accelerated the adoption of digital platforms for purchases and payments. The Japanese fashion retailer entered the Indian market in 2019 through the single brand retail route. Currently it operates four stores in Delhi-NCR and will soon be launching its fifth store. This strategic initiative was taken in response to customers’ desire for products to be delivered to their doorstep swiftly in times of cautious mobility and is the first step towards making Uniqlo apparel accessible to customers across India. Uniqlo India plans to be deliver to people in more than 17,000 pin codes across the country. They will offer full line-up of over 20,000 items through the online store, including iconic products such as Ultra-Light Down jackets, EZY Jeans, HEATTECH, AIRism masks and Fleece jackets, among others. It added that it is actively engaged in building a robust e-commerce solution, given the current challenging situation. This interim solution is to provide customers a way to easily access and experience the brand.

Hennes & Mauritz overtakes rival Zara to become India's largest clothing brand Swedish fashion retailer Hennes & Mauritz (H&M) has overtaken its main rival Zara to become India's largest clothing brand by revenues in FY19-20, helped by aggressive store expansion and lower pricing. H&M expanded sales 28% to € 186 million (Rs1582 crore) during the year ended March 2020. In comparison, Inditex Trent, a joint venture with Tata that runs Zara stores in India, saw revenue rise 9% to € 185 million (Rs.1,570 crore) last fiscal. While the difference may be small, H&M's revenue is significant considering it entered India in 2015, five years after the Spanish rival Zara opened its first door in 2010. The product prices of H&M is far more reachable and its consumers are younger compared to Zara which are priced higher with a mature set of consumer base. H&M is extremely aggressive in terms of store launches and its digital push. This reflects in their net profits too - H&M's profit was € 0.94 million (Rs. 8 crore), a decline of 82% while Zara's net profit rose 45% to € 12.23 million(Rs.104 crore) during last fiscal.

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

9 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

General

Nitya Electro Controls starts production at Greater Noida plant Nitya Electro Controls Group production has started at its wires and cables manufacturing plant at Greater Noida in Uttar Pradesh. They will manufacture German technology-based house wires, multicore cables, specialty cables, LT Power cables at the plant. They are coming up with German technology advanced products for Indian consumers to ensure the best quality and safety. They had earlier announced plans to invest € 23.53 million (₹ 200 crore) over a five-year period.

Dixon to open third handset assembly plant by January Indian electronics manufacturer Dixon Technologies will begin operations in its 11th manufacturing facility - its third dedicated plant for assembling mobile phones - in Noida by January next year entailing an investment of € 8.82 million (Rs. 75 crore). This will increase their total capacity from 30 million units to 80 million units in the first year. The new plant will create more than 4000 direct jobs, including 900 in the first year. The consumer durables manufacturer Dixon has a varied product portfolio of mobile phones, lighting products, smart TVs and washing machines. It currently has 10 manufacturing units - four in Noida (Uttar Pradesh), four in Dehradun (Uttarakhand) and two in Tirupati (Andhra Pradesh). Handsets are assembled in Noida plants. The new 220,000 square feet plant will specialize in SMT, assembly, testing and manufacturing batteries. Dixon already has in-house capabilities for panel assembly and PCB (printed circuit board) assembly. Motorola is in talks with Dixon Technologies and Lava for a contract of manufacturing € 0.85 billion ($1 billion) worth of smartphones in India.

Samsung to commence local production of TV sets from December Samsung India, the country’s largest consumer electronics and smartphone maker will commence local production of TV sets by December 2020, but it needs permission to import TV sets till then to ensure that ‘business continuity’ is not drastically impacted in the festive season. Maintaining the current threshold volumes is pivotal for setting up of the domestic TV manufacturing facility. The government had put television sets on the restricted list of imports for the first time in 20 years, as part of its strategy to discourage imports from China and boost local manufacturing. Companies now need licences to import TV sets and so far, the government has not issued any such permit. The import impediments were against the ethos of Ease of Doing Business and imports held at customs were impacting business. Samsung has been manufacturing some TV models in India through contract manufacturer Dixon since early this year.

Tetra Pak will increase investments in recycling in collaboration with industry, governments Tetra Pak will continue to invest in strengthening collection and recycling in collaboration with industry, central and state governments. Over 80% of Tetra Pak packages sold in India now display the FSC logo indicating that paperboard used in them is made from responsibly sourced wood. Tetra Pak, which works with Amul, Nestle and Coca-Cola among various other consumer goods companies within foods and beverages, It has aligned with 16 companies across juices, dairy, pharma, liquor and packaging to double collection and recycling of used paper cartons by 2025. Tetra Pak has invested € 23 million between 2012 and 2019 and increased its facilities from 40 in 2002 to more than 170 now.

Engineering exports down 18% to $26 bn in April-August period of FY21 Exports of engineering goods declined over 18% to € 19.55 million ($26 billion) in the April- August period of the current fiscal. The shipment of such goods was at € 27.12 billion ($31.9 billion) in the first five months of the previous fiscal. 28 of 33 product categories showed a year-on-year fall in exports. On a cumulative basis, the decline in engineering exports was 18.73% during the April-August period of the 2020-21 fiscal. The overall export market remains very challenging as the COVID-19 continues to rage the world. However, the early signals point towards a pickup in industrial activity in select countries, mostly in North Asia. An improvement in exports of iron, steel, copper, and zinc in the first five months of the current fiscal was witnessed. However, the shipment of value-added iron and steel products saw a 29.7% decrease in the period. The overall exports continue to remain in the negative territory except for critical base metals.

AP CM reviews mega projects at SIPB, Adani data centre, among others Andhra Pradesh Chief Minister has reviewed the progress of some of the mega projects, including Adani data centre and it's related project, with proposed investment of € 1722 million (Rs. 14,634 crore). The proposal of Adani Enterprises Ltd for setting up of Integrated Data Centre Park, Integrated IT and Business Park, Recreation Centre, along with proposals to set up a Skill University at Madhurawada in Visakhapatnam was also discussed. Adani project will employ a total of 24,990 people. Intelligent SEZ Ltd (Footwear Manufacturing) plans to invest € 82 million (Rs.700 crore) in two phases, at Inagaluru in Srikalahasti Mandal, Chittoor district, which would employ 10,000 people. ATC AP Pvt Ltd (Off- Highway Tires) company at Achuthapuram SEZ will invest € 115 million (Rs.980 crore) and provide employment to 2000 people. VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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Focus State – Andhra Pradesh

Governor: Shri Biswabhusan Harichandan

Chief Minister: Shri Y.S Jaganmohan Reddy

General Facts Area (sq km) 162,970 sq kms Total Population 5.40 crores

Literacy Rate 67.41 % Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Airports Bobbili, Nagarjuna Sagar, Cuddapah & Puttaparthi.

Infrastructure

Roads As of March 2019, the state was connected via 46,237.65 km of National Highways. In September 2016, the state had approved India’s first coastal corridor – the Vishakhapatnam Chennai Industrial Corridor (VCIC). The Asian Development Bank (ADB) has approved € 536.35($ 631) million (in loans and grants) for the project. Further, in State Budget 2018-19, the government allocated € 219.98 ($ 258.81)(Rs 1,668 crore) million for the project. Under the project,four nodes – Vishakhapatnam, Kakinada, Kankipadu - Gannavaram and Yerpedu- Srikalahasti have been identified for development. The master planning of two nodes of the corridor – Vishakhapatnam and Yerpedu - Srikalahasti – is currently ongoing. As per the State Budget 2019-20, Andhra Pradesh has allocated 1.6% of its total expenditure for roads and bridges. For 2019-20, the state government has allocated € 754.4 ($ 887.53) million as capital expenditure on transport, road and buildings department in the state. Under Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (AP PCPIR), construction of 40 km of national highways, 42 km of state highways & nearly 75 km of major districts roads is under planning & is expected to be completed in the next 5 years. As of July 2018, the draft master plan and draft Environmental Impact Assessment Study has been prepared.

By Air Andhra Pradesh has eight operational airports/air strips at Visakhapatnam, Tirupati, Rajahmundry, Vijayawada, Bobbili, Nagarjuna Sagar and Puttaparthi. Apart from these, Donakonda airport is non-operational (closed) whereas 4 are under development in Nellore, Kurnool, Ongole. Kadapa airport has been made operational. Visakhapatnam, also popular as Vizag, has an international airport, which is under the Navy's command. In January 2018, Andhra Pradesh inaugurated its seventh airport at Orvakallu near Kurnool city. It is developed on a 1010 acre site at a cost of € 12.96 ($ 15.25) million. The upcoming international airport Bhogapuram will be developed by the state government, under PPP mode, at an estimated cost of € 279.31 ($ 328.60) million & will cater to 6.3 million passengers a year. It is expected that the airport will be completed by December 2020. In 2019, existing runways at Vijaywada airport has been extended from 2,286 metres to 3,360 metres similarly, Rajahmundry airport extended from 1,750 metres to 3,165 metres.

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Railways The state is well connected through the rail network. Visakhapatnam, the largest city in the state, has rail accessibility to nine district headquarters out of thirteen in the new state. The city is also well connected to the neighbouring states of Odisha and Chhattisgarh. The state government has undertaken construction of Nadikudi Srikalahasti line, covering a length of 308 km. The main purpose behind the construction of this new line is to develop the backward areas of Guntur, Prakasam, Nellore and Chittoor districts and improve their connectivity with other states and also enable exports of raw materials that are used in cement and granite industries. As of July 2018, a section of the line stretching between Piduguralla and Rompicherla has been laid and trial runs initiated. The Union Government has also planned to develop metro rail projects at Visakhapatnam and Vijayawada. The Visakhapatnam project, estimated to cost € 1,093.95 ($ 1,287.82) million, will develop three important routes. As of Nov 2018, the state government has approved the proposal for metro rail with public private partnership. The first phase of the Vijayawada Metro Rail Project is expected to be completed by August 2018 and the Rail Project is expected to be completed by December 2018

Ports Traffic handled by Visakhapatnam port reached 63.54 million tonnes in 2017-18. In 2018-19, traffic handled reached 65.30 million tonnes. The state government had invited bids for development of Bhavanapadu port in 2016. In January 2018, the state government finalised Adani Ports and SEZ Ltd as the developer of the greenfield project. The port is expected to have a capacity of 30.57 million tonnes and will be constructed over 2,050 acres of land. The project is expected to be completed by 2023 to 2024. Further, the Visakhapatnam multi-modal logistics parks (MMLP) is ready for operation. The government has also announced its plans to set up 2 more MMLPs at Krishnapatnam and Kakinada. On November 17, 2019, ports of Visakhapatnam and Ranong in Thailand enteredin joint venture to explore business opportunities. In November 2019, Visakha Container Terminal at Vizag port operated the first- ever direct service from South East India to North Europe (IEX), also connecting the Mediterranean region.

Power As of February 2020, Andhra Pradesh had a total installed power generation capacity of 24,803.00 MW. Out of the total, private utilities contributed 15,749.75 MW, state utilities contributed 6975.18 MW and central utilities contributed 2,078.08 MW. With a contribution of 14,688.21 MW, thermal power accounted for the highest share of the overall installed power generation capacity of the state, followed by renewable energy with a contribution of 8,313.92 MW. In Budget 2019-20, the state government announced plans to invest € 674.85 ($ 793.95) million for the development of the energy sector in the state. The government had approved setting up of 6 light-water nuclear reactors in the state in 2016. The nuclear reactors will be set up in Kovvada and will have a capacity of 1,208 MW each. As of August 2018, project proposal for setting up the reactors in cooperation with USA are in progress. Government of Andhra Pradesh has been saving upto 2,000 million units (MU) of power and about € 115.66 ($ 36.08) million annually for last three years by promoting energy efficiency initiatives with an aim to conserve 15,000 MU of power by 2023. In January 2019, the Government of Andhra Pradesh launched Wind Power Policy 2018 for the period of five years and the incentives are declared for the period of 10 years. It aims to expand the base of wind projects.

Telecom According to the Telecom Regulatory Authority of India (TRAI), Andhra Pradesh had nearly 87.02 million wireless subscribers and 1.35 million wireline subscribers, up to December 2019. As of December 2019, the overall tele-density in the state stood at 97.28%. By the end of December 2019, 39.58 million subscribers had submitted requests for mobile number portability in the State.

Economy At current prices, the GSDP of Andhra Pradesh was € 130.9 ($154.62) billion in 2019-20. The GSDP grew at a CAGR of 13.97% from 2011-12 to 2019-20. The state’s per capita GSDP in 2018-19 was € 2,224.11 ($ 2,616.6) compared with € 1,396.06($ 1,642.42) in 2011- 12. Per capita GSDP increased at a CAGR of 13.15% between 2011-12 and 2018-19.

At current prices, the NSDP of Andhra Pradesh was € 103.02 ($ 121.20) billion in 2018-19. The NSDP grew at a CAGR of 13.97% from 2011-12 to 2018-19. The state’s per capita NSDP in 2018-19 is

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€1,994.87($ 2,346.90) compared with € 1,251.06 ($ 1,471.84) in 2011- 12. Per capita GSDP increased at a CAGR of 13.17% between 2011-12 and 2018-19. During 2018-19, the services sector accounted for a share of 43.6% in the total GVA of the state, followed by agriculture and allied sector at 33.64% and Industry at 23.38%. The agriculture and allied sector grew at the fastest rate at 20.49% between 2011-12 and 2017-18AE, followed by the services sector at 17.02% and industry sector at 10.03%.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in Andhra Pradesh between April 2000 and June 2019 reached € 16.13 ($ 18.98) billion. During AP-CII Partnership Summit 2018 held at Vishakhapatnam, the state signed MoUs worth € 57.89 ($ 68.11) billion. In January 2019, Asia Pulp & Paper decided to invest € 2.98 ($ 3.5) billion for setting up of a greenfield pulp and paper plant in Prakasam district. During 2019, up to March 2019, 139 investment intentions worth € 2.28 ($ 2.69) billion were filed in Andhra Pradesh.

Merchandise exports from Andhra Pradesh have increased to € 11.96 ($ 14.08) billion in 2018-19 from € 10.15 ($ 11.94) billion in 2016-17. In 2019-20 they have reached € 9.07 ($ 10.68) billion. Drugs Formulations, Biologicals is the largest export category of the state, accounting for nearly 38.06% of total exports in 2019-20, followed by Rice (10.14%) and Ship, Boats and Other Floating Structures (6.90%). As of FY 2020 merchandise exports from Andhra Pradesh stood at € 9.08 ($ 10.69) billion.

Social Infrastructure Andhra Pradesh has a literacy rate of 67.4%, as per Census 2011. The Sarva Siksha Abhiyaa and Rashtriya Madhyamik Siksha Abhiyaan are two schemes which are focusing towards fulfilling the aim of reinforcing the education in the schools in accordance to the enrolment, quality, access as well as retention. Under the State Budget 2019-20, government has allocated € 78.46 ($ 92.3) million to the Jagananna Ammavodi programme, € 18.24 ($ 21.46) million for modernisation of infrastructure in schools and for Samagra Shiksha scheme € 14.08 ($ 16.56) million has been allocated. Funds allocated under Sarva Shiksha Abhiyan for Andhra Pradesh increased stood at € 380.15 ($ 447.24) million. In Budget 2018-19, € 28.37 ($ 33.38) billion is allocated for secondary education and € 372.22 ($ 437.91) million for higher education.

Health As of March 2020, the state had 1,533 primary health centres, 7,459 sub centres, 47 sub-district hospitals and 26 district hospitals. The state government has come up with new programmes which include 102 Talli Bidda Express for Maternal & Child Health, Tele Radiology, eAushadi, etc. to provide ensured health care services to the people of the state. Under the State Budget, government has allocated € 21.06 ($ 24.78) million to National Health Mission and € 18.24 ($ 21.46) million for infrastructure facilities at hospital. An allocation of € 1.22 ($ 1.44) billion has been proposed by the state government for health care sector in the state, as per the Budget 2019-20.

Industrial Infrastructure Government of India is setting up a National Investment & Manufacturing Zone (NIMZ) in Prakasam district, which would be set up in an area of 14,231 acres and help in generating 5 lakh jobs over next 10 years. Land acquisition for the project is currently underway. Also, development of Visakhapatnam- Chennai industrial corridor is ongoing. The project once completed is expected to attract investments of worth € 14.20 ($ 16.7) billion and generate more than 50,000 jobs. Also, development of Visakhapatnam - Chennai industrial corridor is ongoing. The project once completed is expected to attract investments of worth € 14.20 ($ 16.7) billion andgeneratemorethan50,000jobs. The MoU is signed between JSW Group and Andhra Pradesh Economic Development Board. The company expected to investment of Rs 4,500 crore € 530.15 ($ 623.70) million to build a jetty at Ramayapatnam Port and plans to expand their logistic footprint. In February 2020, Isuzu Motors India, Japanese utility vehicle manufacturer, commenced its Phase-II operations of its manufacturing facility located in Sri City in Andhra Pradesh. Andhra Pradesh was home to 20 operational SEZs, 32 SEZs with formal approvals, four SEZs with in-principle approval and 27 notified SEZs, as of February 2020. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-product, pharma, IT SEZs, etc.

Key Industries in the State

Drugs and Pharmaceuticals Andhra Pradesh is home to many global & national pharma players; various companies have set up their manufacturing hubs in Visakhapatnam & Srikakulam districts. Exports of pharmaceuticals from the state stood at € 0.98 ($ 1.15) billion in FY19 and reached €1.21 ($ 1.42) billion in FY20 (up to December 2019). In December 2018, the first phase of Andhra Pradesh Medtech Zone (AMTZ) was inaugurated at Pedagantyada in Visakhapatnam. It will have around 240 companies manufacturing medical equipments and will generate 25,000 jobs. In February 2020, Novartis has launched Biome India, a VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

13 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office digital innovation hub, in Hyderabad. This is the company’s first such centre in Asia and the fourth globally.

Agriculture and Allied Industries The presence of rich climatic and soil conditions makes Andhra Pradesh a major agricultural belt. The state ranks first in area and production of fruits and spices in the country. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram. The overall production of food grains in the state, during 2018-19 is expected to have reached 15.11 million tonnes with pulses production reaching 752 thousand tonnes. The production of fruits and vegetables is estimated to have reached 7.09 million tonnes and 17.61 million tonnes in 2018-19P, respectively. The production of pulses and total food grains reached 752,000 tonnes and 15,112,000 tonnes in 2018-19. Production of total oilseeds reached 2,493,000 in 2018-19. Andhra Pradesh is also home to a thriving fisheries industry. The state ranks first in the production of fish and shrimp in India and contributes more than 65 per cent of the country’s cultures shrimp production. Fish and prawn’s production contributed around 7.4% of the state’s GSDP and supported livelihood of 1.45 million persons, as of 2018-17. The state’s exports of marine products have increased from € 1325.57 ($ 1,559.49) million in 2014-15 to € 1642.57 ($ 1,932.43) million in 2018-19 and reached € 1864.22 ($ 2,193.2) million in 2019-20 (up to December 2019).

Petroleum, Chemicals and Petrochemicals According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil & natural gas reserves. The state’s Krishna Godavari basin, spread over an area of nearly 52,000 sq km, has a total hydrocarbon resource base of 1,130 million metric tonnes. Production of crude oil and natural gas in the state was recorded at 273 thousand metric tonnes and 961 mcm during 2018-19, respectively. To promote investments in the industry, Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) is being set up. The projects is coming up over an investment area of 603 square km and will boost refining, petrochemicals, chemical and manufacturing sectors in the state. The production of major chemical and petrochemicals stood at 659,200 tonnes in 2017-18.

Tourism Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine & hospitable people. The state continued to witness increase in domestic tourist arrivals over the last few years. In 2019 (as of December 2019), domestic tourist arrivals in the state stood at 195.8 million, while foreign tourist arrivals stood at 0.23 million. As per budget 2018-19, the Government of Andhra Pradesh announced plans to spend € 38.25 ($ 45.00) million for the development of tourism and Culture department in the state.

State Acts and Policies Andhra Pradesh Internet of Things (IoT) Policy 2016-2020 To develop Andhra Pradesh as an IoT hub and accomplish a considerable share in the country’s IoT market by 2020. To create opportunities related to employment in Iot space for educated youth of the state.

Industrial Development Policy 2015-2020 To ensure sustainable & inclusive industrial growth. To be among the Top 3 states in terms of industrial investments by 2022 and be the most preferred logistics hub and India’s gateway to East and Southeast Asia by 2029. To enhance the quantum and quality of skilled manpower and create significant employment opportunities.

Textile, Apparel and Garments Policy 2018-23 To attract new investments in value added textile activities worth € 1.90 ($ 2.24) billion (Rs 15,000 crore) by 2023. To convert the major portion of yarn produced in the state into fabric and garments within the state.

Andhra Pradesh Solar Power Policy 2015 To aid the development of solar power projects in the state and attract new investments for capacity addition of 5,000 MW over next five years NREDCAP would act as the nodal agency and responsible for capacity allotment.

Andhra Pradesh Wind Power Policy 2015 The new policy would replace the existing policy in order to attract new investments and achieve 4,000 MW capacity addition through wind power projects in the state NREDCAP would act as the nodal agency and would be responsible for capacity allotment of up to 40 MW.

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14 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Automobile and Auto Components Policy 2015-20 To provide a special focus on Automobile Industry by the provision of subsidies and reimbursements on CST, VAT/SGST. The development of Industrial Corridors(VCIC/CBIC) by providing excellent port logistics and infrastructure has been highlighted in the policy. To attract high investments in the state and improving the employment status.

Food Processing Policy 2015-2020 To attract investments worth € 643.45 (~$ 757) million by the end of 2020 in order to make the state as one of the most preferred destinations for food processing industries Create 50,000 job opportunities in the state by 2020.

Andhra Pradesh Single Desk Policy 2015-20 To create a conducive ecosystem to provide all clearances required to setup industry within 21 working days. To provide spot and deemed approvals based on self-certification and to provide parallel processing of streamlined processes.

New Tourism Policy2015-20 To attract investments worth € 1.28 (~$ 1.5) billion by the end of 2020 through projects under the public- private participation (PPP) mode Create 500,000 job opportunities in the state by 2020.

Biotechnology Policy - 2015-20 To attract investments worth € 771.8(~$ 908) million by the end of 2020 and support the state to emerge as most preferred destination for biotech investments Create 5,000 job opportunities in the state by 2020.

Innovation & Start-up Policy 2014-2020 To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipment, computers & peripherals, and strategic electronics & components (semiconductors, solar & displays).

Andhra Pradesh Cyber Security Policy 2017 To create a robust cyber ecosystem in Andhra Pradesh Establishment of a Cyber Security framework and strengthening law enforcement agencies.

Andhra Pradesh Electronics Policy 2014- 2020 To develop Electronics Industry as an important growth engine for Andhra The Policy aims to attract investments to the tune of € 4.25 ($ 5 billion) in ESDM sector and create an employment of 0.4 Million by 2020.

Andhra Pradesh Port Policy 2015 To make minor ports of the state as the favoured ports for container cargos from North and Central regions of the country. To allow commercial feasibility of various projects related to the ports.

Andhra Pradesh Fisheries Policy 2015-20 To double theproductionand exportof shrimpandfishto 4.2 million metric tonsand € 2.04 (US$ 2.4) Billion respectively.

Andhra Pradesh State Mega Seed Park Policy, 2018 To make Andhra Pradesh one of the most preferred destinations for seed industry. To attract new Investments in seed industry worth € 0.38 ($ 0.45) billion (Rs 3,000 crore) by 2023. To create additional employment opportunity for 40,000 personnel by 2023.

Designated Technology Parks (DTP) Policy, 2017-2020 To incentivise real estate developers to build larger world class Information Technology (IT) office spaces. To reduce the approval time for office spaces for IT companies from 50 days to 21 days.

Electric Mobility Policy To attract investments worth € 3.80 ($ 4.47) billion in manufacturing of electric vehicles (EVs) in the next five years. To replace public transport buses in four cities to electric buses by 2024 and across the state by 2030.

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15 Indian Economic and Industrial Scenario, 10/2020 VDMA INDIA Office

Animation, Visual Effects, Gaming and Comics (AVGC) Policy 2018-2020 To attract investments worth € 811.45 ($ 954.65) million (Rs 6,400 crore) in the sector by 2020. To bridge the demand and supply gap of human resources and capture a larger share of outsourced work in gaming, animation, media and entertainment sector.

Some of the operational SEZs in Andhra Pradesh

Key Approvals Required

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Cost of Doing Business in Andhra Pradesh

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Seminars & Exhibitions

Acrex India 2021 Date Venue Organizer Profile Products/ Participants

Bangalore Nürnberg Messe India The 22nd edition of International Pvt. Ltd. ACREX India will Pack aged Chillers Exhibition focus shall be on Air Handling & Distribution

Centre (BIEC) German House, 2, advancements in Products technology in the Unitary Products (Air

202 1 Nyaya Marg, Bengaluru HVAC sector, Conditioners) Chanakyapuri, which is pivotal in Water Distribution New Delhi – 110 021 creating a better Water Treatment Retrospect: 2019 future, better world. Corrosion

February Tel: (0)11 47168888/

Electricals

h 96060 39487 / 96060 t Services

7 Exhibitors: 39468 2 Indoor Air Quality

– 400 Products Email: Visitors: mansi.chawla@nm- 30,000 india.com / rohan.chopra@nm- February india.com th Countries: 40 25 Website: www.acrex.in/home

Engimach 2021 Date Venue Organizer Profile Products/ Participants

Helipad K AND D The 15th edition of Machine Tools Cutting & Exhibition COMMUNICATION LTD. Engimach, the Forming Centre biggest and best Pumps & Valves Engineering Gears, Motors & Drives

Gujarat 206, 2 Floor, Harmony Technology Tools, Power Tools & Icon, Near Baghban Party Exhibition, is apt Hand Tools

202 1 platform for Material Handling Retrospect: Plot, Thaltej Hebatpur presenting and Equipment 2019 Road, Thaltej, Ahmedabad - 380059, viewing the Surface Finishing & Gujarat, INDIA industry's Blasting Exhibitors: innovations in all its Robotics & Automation 589 December glory. ITES Tel: 99090 41613 / Tube & Pipe Technology

5th 99090 41618 Electronics & Electricals 0 Visitors:

– Machine Tools

78,431 E-mail: Accessories Brass Parts Countries: 16 [email protected] Industrial Lubricants Website: Hydraulics & Pneumatics

December Air compressor www.kdclglobal.com/en gimach-2021.html Testing & Measuring

01st Instruments Welding Equipment & Consumables Newly launched products & technology

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Activities & services of the VDMA India Office Promote sales of members in participating divisions within VDMA especially exports, including participation in exhibitions.

Organize symposia and similar presentations of German companies in India.

Participate and service bilateral programs such as those in existence, with governmental participation between Germany and India.

Furnish information about the complete product program of the German industry to assist Indian companies to identify right partners for mutual business relationship.

Provide information on market trends, prospects, future development, new projects and tenders.

Contact: VDMA INDIA SERVICES PRIVATE Mr. Sandip Roy, Regional Head-East LIMITED Telephone: +91 33 40602364 Fax: +91 33 2321 7073 E-mail: [email protected] Mr. Rajesh Nath, Managing Director GC 36, Sector III, Salt Lake Mr. Rijoy Sengupta, Regional Manager- Kolkata– 700106, India North Telephone: +91 33 40602364 Telephone: 01204255029 Fax: +91 33 2321 7073 Mobile: 7044080755 Email: [email protected] Email: [email protected]

Ms. Jamly John, General Manager Mr. S Manohar, Regional Head-South Telephone: 022 44764525 Telephone: 08025595901 / 43007722 Mobile: 9819045109 Mobile: 9663310403 Email: [email protected] Email: [email protected]

VDMA India Quarterly Newsletter-German Machinery Industry

The VDMA India office publishes a Quarterly Newsletter-German Machinery Industry. This Newsletter informs the Indian industry about the development in the German Machinery industry in various industrial sectors. This Newsletter has a circulation of around 7000 copies in different industrial divisions. The VDMA member companies have the possibility of giving an advertisement in this Newsletter at a discounted rate.

For further details, please contact:

Mr. S Manohar: [email protected]

VDMA-Newsletter “India”, Edition 10/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444