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Maha Udyog Varta MAHAINDUSTRY : MIDC’s Business News Letter Government of Maharashtra 4rd Edition November 2019 Region in Focus – Nagpur of the aerospace and defence manufacturing with annual export target of USD 5 billion by 2025 • Nagpur is projected to be the fth fastest growing city • Defence industry of India is a strategically important in the world from 2019-2035 with an average growth sector in India. With a strength of over 1.44 million of 8.41%. It has been proposed as one of the Smart active personnel, it is the world's 2nd largest military Cities in Maharashtra and is one of the top ten cities in force after People's Republic of China India in Smart City Project execution • India has the world's largest military of over 5.1 million • Nagpur was identied as the best city in India topping personnel. The total budget sanctioned for the Indian in livability, greenery, public transport, and health care military for the nancial year 2019 is USD 60.9 billion. indices in 2013. The city was adjudged the 20th India's annual military expenditure has grown by over cleanest city in India and the top mover in the western 231 percent over decade. zone as per Swachh Sarvekshan 2016 • As per Economic Survey of Maharashtra per capita Country Focus: Russia income was INR 123,610 (USD 1,800) in 2015 and its • India is the second largest market for the Russian GDP was estimated to be USD 15.10 Billion in 2016. defence industry between 2014-2018. In 2017, Sector Focus- Defence approximately 68% of the Indian Military's hardware import came from Russia, making Russia the chief • Defence is one of the major sectors occupying a supplier of defence equipment. sizeable portion of the Government of India's • Between 2013 and 2018, Russia accounted for 62% spending. The geographical and topographical of arms sales to India. Russia 68%, USA 14% and diversity, especially the 15,000 km long border which Israel 7.2% are the major arms suppliers to India India shares with seven countries poses unique (2012-2016). challenges to the Indian Defence Forces. • Bilateral trade between India and Russia in 2002 • In recent years the Defence sector has grown stood at USD 1.5 billion and increased by over 7 times extensively with a CAGR of 10%. India's defence to USD 11 billion in 2012 and with both governments industry accounts for about 1.6% of the GDP by setting a bilateral trade target of USD 30 billion by value. The allocation of Defence in India's union 2025. budget is approximately USD 34.53 billion out of which 31.1% of the defense budget is spent on capital • The Indo-Russian strategic partnership has been acquisitions. built on ve major components: politics, defence, civil nuclear energy, anti-terrorism co-operation and • India's defence exports were INR 4,682 crore (USD space. However, in recent years a sixth, economic 660 million) in 2017–2018 and INR 10,500 crore component has grown in importance, with both (USD 1.47 billion) in 2018–2019, of 2018–2019 countries setting a target of reaching USD 30 billion in exports India's 8 Defence Public Sector Undertakings bilateral trade by 2025, from about USD 9.4 billion in (DPSU) and 41 Ordnance Factories (OF) contributed the year 2017. In order to meet this goal, both INR 800 crore (7.6% of total defence exports). countries are looking to develop a free trade • Defence Production Policy of 2018 (DPrP-2018) agreement. Bilateral trade between both countries in India, has set a goal to become top 5 global producers 2012 grew by over 24%. 01 MAHAINDUSTRY : MIDC’s Business News Letter CEO’S Corner Innovation, Cloud Computing, FinTech and Tourism & Hospitality. Exclusive policies for these sectors were Maharashtra is set to welcome 4th released in Magnetic Maharashtra 2018 Summit and Industrial Revolution. It envisions the Industries Department along with Maharashtra to become a USD 1 trillion Industrial Development Corporation (MIDC) are economy by 2025. Thrust areas working on realizing the roadmap to success. for Maharashtra to reach its vision Focus on enhancement of Information Technology will include the following aspects. sector. Maharashtra being a tech education hub of Value addition and job creation India, supply of quality IT engineering graduates is for agriculture-based businesses & industries. This will high. Connecting this skilled manpower with the transform the stressed agriculture sector into a growth increasing demand is critical. New age technology- led sector. based industries such as Robotics, Aerospace, As a leading industrialised state, Maharashtra has Biotechnology, Health Sciences, Electric Vehicle, always met and often surpassed the need of the Electronics etc. will continue to lead growth of New industries be it for the industries present in the state, in India and a Magnetic Maharashtra. the country or for new global businesses looking for a Regards conducive business environment. The state has undertaken various reforms for simplifying the Dr. P Anbalagan (IAS), procedures for setting up businesses in the state. One s u c h m a j o r r e f o r m i s e s t a b l i s h i n g M A I T R I CEO, MIDC (Maharashtra Industry Trade & Investment Facilitation cell) as a sole point of contact for getting necessary MIDC: In the news approvals, NOCs (No Objection Certicates), Registrations etc. In addition, the state has come out Russian steel major Novolipstek Steel (NLMK) is set to with a public cloud policy virtually mandating its invest INR 6,800 crore in two phases by 2022 in departments to shift their data storage onto the cloud, Maharashtra. NMLK makes special kind of steel creating a USD 2 billion opportunity for the industry. required for electricity conduction and transformers. Important technological improvements have also been At present, Russian steel major supplies 20 per cent of made using Single Window access systems at transformer steel. department levels to ensure process transparency and In the rst phase, there will be an investment of INR 800 efciency including online availability of information to reduce delays. crore. The second phase will begin in 2022 which would envisage an investment of INR 6,000 crore, the While core industries in Maharashtra such as company is expected to boost investment in the state Automobile, IT/ITES and Textile remain consistent which would create more job opportunities. Therefore, performers, the state has also started focusing on new the government would extend all possible cooperation businesses and industries that would be key growth to the company at all levels. Once the company starts enablers for Maharashtra's Trillion-dollar vision by production in Maharashtra, this steel will be available 2025. These industries include Electric Vehicles, Next within the country. Gen Logistics, Defence, Aerospace, Start-up, 02 MAHAINDUSTRY : MIDC’s Business News Letter over 20 acres is being created at MIHAN, Nagpur, Nagpur Region: At A Glance with an investment of about INR 235 crores. The cluster will provide manpower training and land to SME units, it will pave the way for training 45,000 technicians in defence manufacturing by 2023. • Nagpur is an important city for the Indian armed forces. Maintenance Command of Indian Air Force has its current headquarters at Vayusena Nagar in Nagpur. It houses Mi-8 helicopters and the IAF carriers IL-76 and handles the maintenance, repair, Nagpur and operations of all aircraft, helicopters and other equipment. • Nagpur's National Civil Defence College provides Nagpur city is the winter capital of the state of civil defence and disaster management training to Maharashtra, with a population of more than 46 lakhs. It pupils from all over India and abroad. Indian Air has also recently been ranked as the cleanest city and Force's IL-76 transport planes are also based in the second greenest city of India. In addition to be the Nagpur. seat of annual winter session of Maharashtra state Opportunity in the Region assembly “Vidhan Sabha”, Nagpur is also a major MIHAN commercial and political center of the Vidarbha region of • In order to remove the regional disparity in the state, Maharashtra Govt. of Maharashtra has decided to develop a Road Connectivity composite project called 'Multi-Model International • Nagpur is a major road junction, since India's two Passenger and Cargo Hub Airport at Nagpur' major national highways (NH 7 from Kanyakumari to (MIHAN). The project comprises of developing the Varanasi and NH-6 from Hazira to Kolkata) pass existing domestic airport of Nagpur as an through the city, The Nagpur–Aurangabad–Mumbai international passenger and cargo hub airport, along express highway, connects the state capital with a huge Special Economic Zone (SEZ), abutting (Mumbai) to Nagpur via Aurangabad and signicantly to the boundary of the airport. reduces the distance traveled by NH 6 and NH 3 • Companies which have been allotted land in MIHAN between the cities. include Lupin, All India Institute of Medical Sciences • Maharashtra Samruddhi Mahamarg which is 700 (AIIMS), Indo UK Institute of Health, Suraj Eyecare, kms. super communication expressway from Mumbai Essem Compliance, Zim Laboratories, Arco Life (JNPT) to Nagpur (Mihan) is eight-lane expressway, Sciences, Glowide Pharma, Pharmacheck, Nubeno running through 10 districts, 26 tehsils, and over 390 Pharma, Divya Pharmacy and S K Logistics. villages. SEZ (Special Economic Zone) : Railway Connectivity • A new SEZ of 2086 hectares, the largest multi- • Due to its central location, Nagpur is a rail junction product SEZ in India, is being built alongside the connecting India's four major metropolises: Mumbai, airport. Out of 2086 hectares, 1472 hectares is used Delhi, Chennai, and Kolkata.
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