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6/2020

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.82

Economic Growth As per the United Nations Conference on Trade and Development (UNCTAD), ’s economy could prove the most resilient in South Asia and its large market will continue to attract market-seeking investments to the country even as it expects a dramatic fall in global foreign direct investment (FDI).

However, inflows may shrink sharply. India jumped to ninth spot in 2019 on the list of global top FDI recipients from the twelfth spot in 2018.

Due to the Covid-19 crisis, global FDI flows are forecast to nosedive by upto 40% in 2020, from their 2019 value of € 1.40 ($1.54) trillion, bringing FDI below € 0.91 ($1) trillion for the first time since 2005. FDI is projected to decrease by a further 5-10% in 2021 and a recovery is likely in 2022 amid a highly uncertain outlook.

A rebound in 2022, with FDI reverting to the pre-pandemic underlying trend, is possible, but only at the upper bound of expectations. The outlook looks highly uncertain.

FDI inflows into India rose 13% on year in FY20 to a record € 45 ($49.97) billion compared to € 40 ($44.36) billion in 2018-19. In 2019, FDI flows to the region declined by 5%, to € 431 ($474) billion, despite gains in South East Asia, and India. FDI to India has been on a long-term growth trend. Positive, albeit lower, economic growth in the post pandemic period and India’s large market will continue to attract market-seeking investments to the country.

India’s most sought-after industries, which include professional services and the digital economy, could see a faster rebound as global venture capital firms and technology companies continue to show interest in India’s market through acquisitions. Investors concluded deals worth over € 592 ($650) million in the first quarter of 2020, mostly in the digital sector, twelve large deals in energy were also concluded. Singapore remained the largest source of intraregional investment and a major investor in India. The largest five recipients were China, Hong Kong (China), Singapore, India and Indonesia in

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444 2 Indian Economic and Industrial Scenario, 6/2020 VDMA INDIA Office developing Asia. Outflows from South Asia grew 6%, driven by investment from India. Yet they remained small, representing only 1% of global outflows. Companies in India are the subregion’s largest investors, with more than 90% of outflows in 2019.

Investments from India are expected to decline in 2020, with the largest MNEs revising their earnings down by 25% in early 2020 due to the impact of the pandemic.

In order to address the adverse impact of the pandemic, several economies have recently adopted policy measures to boost investment in those industries that are crucial to containing the spread of the virus. India, Italy and the US have adopted measures to encourage manufacturers to expand or shift production lines to medical equipment and personal protective equipment (PPE) to increase the quantity available.

All states are expected to see a contraction in their gross state domestic products (GSDP) this fiscal, averaging a sharp 6.3% decline. With contractions ranging from 1.4%-14.3%, four states will witness double-digit GSDP declines. is likely to be worst affected at the upper end of the range, followed by -12.4% for and -10.9% and 10.7% for and respectively.

As agricultural activities were considered as essential services and were less impacted by the lockdown, states with a higher share of agriculture took a relatively smaller hit than others. Similarly, the high levels of digital penetration in the operations of IT, IT enabled, banking and financial services cushioned the lockdown impact on these sectors, giving an advantage to states with a high share of these activities.

Among the major states, those likely to be most impacted over the fiscal were , , , and , whereas the least affected would be , Punjab, Bihar, and .

Further, given that the states’ own tax revenue (SOTR) is a function of nominal GSDP, states with a high share of SOTR in their total revenue would see a more pronounced impact than others. The most vulnerable states in this respect are Maharashtra, Gujarat, Tamil Nadu, Kerala, and .

These states are likely to see a higher deviation in nominal GSDP compared to budgeted GSDP of around 15-24%, since they have budgeted for SOTR at between 57-64% of their respective total FY21 revenues.

India is looking to increase the scrutiny of imports from Chinese companies or entities located in Association of Southeast Asian Nations (Asean) countries. New Delhi has information about China setting up new entities or acquiring defunct companies in countries such as Vietnam and using these shell enterprises to re-label and export goods to India, exploiting India’s free trade agreement (FTA) with Asean.

The government has also sounded out industry and importers to identify such shipments that abuse the FTA as it contemplates actions such as enhanced checks on country of origin certificates by customs authorities. The FTA with Asean allows lower tariffs on most manufactured goods. There are large quantities of imports that are being routed under the Indian-Asean, India-Singapore Free Trade Agreement. A number of these entities there are just engaged in re-labelling of goods for re-export to India.

India is seeking to lower its dependence on imports and, following border hostilities with China, looking for ways in which it can reduce trade and business ties with its northern neighbour.

The identification of such entities will help the government take effective measures to curb imports through stringent checks of country of origin certificates. These certify where an item has been manufactured and the amount of value addition in the country from which they are shipped. Moreover, verification that exports were being carried out by a shell entity will allow India to make a case for strict country of origin rules, said the people cited above.

India’s imports from Asean rose 26% in FY19 against a 10% overall increase. Imports from Vietnam were up 43.3% to € 7 ($7.2) billion. Customs and other revenue agencies can seek verification of country of origin certificates, which are issued by local trade bodies, from revenue authorities in the partner country. This was done in 2015 following a spurt in gold jewellery imports from Thailand. Raising tariffs helps domestic industry only partially as importers resort to the FTA route that offers lower tariffs on 80% of goods.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Industry Scenario

Infrastructure

European infra company A&M’s JV to invest in Metro project A&M Development Group has committed € 12.20 million (Rs 100 crore) to a Mumbai metro project along with RCC Infra Ventures through its recently formed Indian arm, Oberoi-A&M Infra-Consortium. The company, backed by Nasdaq-listed Polaris Energy Resources, has written to Maharashtra Government seeking permission to invest in Chembur-Bandra-Kurla Complex (BKC) phase of the Mumbai metro project. This will be A&M Development Group’s maiden investment in India after its announcement to invest € 18.2 ($20) billion in mega projects including smart cities in the country in the coming years. Amid the ongoing Covid-19 crisis, A&M Development Group established its India office with plans to develop and execute roads, bridges, metro networks, airports, hydroelectric and irrigation dams, smart cities and low-cost housing projects through contracting and finance route.

Delhi-Amritsar travel to get shorter: Govt clears € 3,049 million (Rs 25K) cr for expressway Amritsar will be connected with the national capital via a brand new expressway as the Government sanctioned a sum of € 3,049 million (Rs 25,000 crore) to kick-start the ambitious project. The project will be a Greenfield or a fresh contract under the Union Government’s Bharatmala scheme. The road is part of the larger expressway that would eventually terminate at Katra in Jammu & Kashmir. The proposed expressway would have a completely different alignment from the existing highway that connects Delhi to Amritsar and would reduce the travel time between the two cities by half. The alignment of expressway was firmed up in January 2019 and process of land acquisition has been initiated. The government had envisaged a Delhi-Katra Expressway that would pass through Amritsar and hence conceived Delhi-Amrtsar-Katra Expressway under Bharatmala. With this expressway, travel time from Amritsar to International airport Delhi would reduce to about 4 hours from nearly 8 hours at present.

ArcelorMittal to invest € 244 million (Rs 2,000 cr) in Odisha ArcelorMittal’s has pledged € 244 million (Rs 2,000 crore) investment in Odisha. Even though they could not operate at peak capacity at the Hazira plant during the Covid-19 crisis, they could produce steel in Odisha and export pellets. ArcelorMittal Nippon Steel India (AM/NS India), a joint venture between ArcelorMittal and Japan’s Nippon Steel, acquired the debt laden Essar Steel in an insolvency resolution process overseen by National Company Law Tribunal (NCLT). It was Essar Steel that bagged the first ever iron ore mine auctioned in the country in Odisha- Ghoraburhani-Sagasahi mine endowed with 99.59 million tonne deposits. The mine containing high grade iron ore reserves is meant to feed the integrated steel plant at Hazira. The Odisha government had issued the Letter of Intent (LoI) for developing the iron ore mine. As per initial plan, 7.16 million tonne was to be extracted each year. The block is at G2 exploration stage and located in Koira sector in Sundargarh district.

Another steel plant coming up in Andhra Pradesh IMR Metallurgical Resources-AG proposed to set up a10-million- tonne capacity steelplant in Kadapa district of Andhra Pradesh. Big firms like Hyundai Motors, Tata Steels and Essar Steels have come forward to partner with the state government for setting up another steel plant in the same district. While the one proposed by the Swiss company at an investment of € 1,463.4 million (Rs 12,000 crore) would be an independent venture. The Kadapa Steel Plant (KSP), which would be developed by an SPV AP High Grade Steels Limited (APHGSL), would have a government equity share of € 60.98 million (Rs 500 crore).The plant with three million tonne per annum production capacity would be completed in three years in Sunnapurallapalli village.The development of a township and allied infrastructure would be completed in two years while soil- testing and geo-technical survey for the plant. would be completed by this month-end.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Automobile

DICV to invest € 278 million (Rs 2,277cr) to expand commercial vehicle production at plant Daimler India Commercial Vehicles (DICV) will invest € 278 million (Rs 2,277 crore) to expand commercial vehicle production at its Oragadam plant near . The company has signed a memorandum of understanding (MoU) with the Tamil Nadu government, covering € 278 million (Rs 2,277 crore) of investments designed to expand its commercial vehicle production. DICV has already invested € 671 million (Rs 5,500 crore) on its Oragadam plant. Since launching its made-for-India CV brand BharatBenz in 2012, DICV has sold well over 1 lakh trucks and buses in India and abroad. The company also exports to around 50 countries and has already exported more than 30,000 vehicles and 1.25 crore parts.

Skoda Volkswagen aims for carbon neutral car production in India by 2025 While electric vehicle sales are yet to take off in a meaningful way, Volkswagen Group is looking to make its factories carbon neutral in India in a bid to curb emissions and rein in climate change. Globally, the Volkswagen Group wants to make manufacturing carbon neutral by 2030. But its Indian arm has set the target of making both the domestic manufacturing plants carbon neutral by 2025 by investing in solar and wind energy, they want to make the entire value channel carbon-neutral or have carbon-fixing projects that compensate for whatever carbon we generate. Presently, they save almost 10,000 tons of carbon emissions annually at its and Aurangabad plants by employing rooftop solar panels the equivalent of over 5000 electric vehicles (EVs). About 30% of their electricity requirement at its manufacturing plants is being met through solar energy, which it aims to increase to 50% by next year. They will also be net water positive by next year. Being net water positive means using that the company uses less water than it conserves through rainwater harvesting.

Indian auto component industry aims to cut dependence on Chinese imports The € 52 ($ 57) billion Indian auto component industry has started taking steps towards deep localisation to de-risk business from Chinese imports with the border dispute between the two countries only acting as a catalyst to speed up the process. Further, the domestic automobile industry is also seeking to cut dependence on Chinese imports after facing severe shortage of critical components due to the coronavirus pandemic, as companies based out of China currently continue to be the leading suppliers of automotive components. In 2018-19 India imported auto components worth € 16 ($ 17.6) billion, of which 27% € 4.3 ($4.75) billion were from China. With COVID-19 and associated lockdowns, all economies and industries have started to look inwards and minimise their reliance-on imports. There is no denying that the industry needs to be 'atmanirbhar' and companies and the government should together define a roadmap and deliver accordingly and this cannot be done singularly by either the industry or the government, both will have to work in tandem.

FCA India aims to expand used car business Automaker FCA India is looking to expand its pre-owned car business with plans to have 65 outlets operational by August end. They currently run its pre-owned car business SELECTEDforYOU from 42 sales outlets. The automaker had introduced a pilot operation of SELECTEDforYOU in Delhi, Mumbai and in 2019 and will now plan to scale it up across the country. The Jeep Compass enjoys exceptional residual value in the Indian automobile market, and that is a great opportunity for their customers. SELECTEDforYOU, being cultivated as a shop-in-shop business model, assures trust, confidence and peace of mind for customers. FCA India has sold around 60,000 units of Jeep Compass in the country till date. Every pre-owned Jeep Compass will be certified only after a 125-point inspection check, thorough verification of past ownership, service records and extensive presale on- road testing. A SELECTEDforYOU certified Jeep Compass will be offered with a warranty of 36 months or 60,000 km complemented by 24x7 roadside assistance (RSA).

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Power

Prakasam:1,000 MW solar power plant to come up in Donakonda The government will establish a 1,000 MW solar power plant in 5,200 acres of land at Rudrasamudram village in Donakonda mandal. It has taken a decision in the Cabinet meeting to establish a solar power plant with a capacity of 1,000 MW in the state. The government ordered to prepare proposals to establish 1,000 MW solar power plants each at Rudrasamudram in Donakonda mandal and Pedda Gogulapalli in Chandrasekhara Puram mandal. They wanted to establish the solar power plants to provide uninterrupted free electricity to the farmers as the thermal and hydel power plants are expensive. They inspected the lands at the Rudrasamudram, Bhumanapalli, Manginapudi and would conduct Gramasabha to take consent from the farmers and public. They would take action also to establish the VHF centre and paper industry in Donakonda and assured to take up industrial development activities in the district.

EESL, GAIL sign MoU for trigeneration projects GAIL and Energy Efficiency Services Ltd (EESL) signed a memorandum of understanding for cooperation in development of trigeneration projects in India. Trigeneration or Combined Cooling, Heat and Power (CCHP) typically involves natural gas-fired generators to produce electricity. The waste heat from flue gas is recovered to produce hot water or steam which in turn is used for heating purposes and also in absorption chillers for cooling. The memorandum of understanding (MoU) aims at building a closer strategic partnership between the two companies by jointly exploring business opportunities in trigeneration business segment in India. Under this MoU, GAIL and EESL shall jointly undertake studies and if found viable, a 50:50 joint venture between the two companies will be incorporated for undertaking trigeneration projects. Further, it would also push gas usage in new applications which is in line with GAIL's Strategy 2030. The intervention potential of trigeneration technology in revolutionising India's energy landscape is significant. EESL is proud to pioneer the effort towards harnessing this potential with GAIL which will set a precedent for upcoming trigeneration projects.

Tata Power to develop 100 MW solar project in Maharashtra Tata Power’s wholly-owned arm has bagged a contract to develop a 100 MW solar project in Maharashtra. Tata Power Renewable Energy Limited (TPREL) has received a letter of award from Maharashtra State Electricity Distribution Co Ltd. (MSEDCL) to develop a 100 MW solar project in Maharashtra. The energy will be supplied to MSEDCL under a power purchase agreement, valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within 18 months from the date of execution of the PPA. With this award, the cumulative capacity of renewable will be 3,557 MW. The plant is expected to generate about 240 million units of energy per year and will annually offset approximately 240 million kg of CO2. Tata Power's renewable capacity will increase to 3,557 MW, out of which 2,637 MW is operational and 920 MW is under implementation including 100 MW won under this letter of award.

India’s wind capacity addition in 2020 will be lower than in the last few years India is expected to install between 1,306-1,506MW of wind capacity in calendar year 2020, which because of the Covid-19 outbreak this year, will be substantially lower than in the last few years. The country installed 2,370MW in 2019 and 2,290MW in 2018. In a recent report on the global wind market, three different estimates of likely wind capacity addition, depending on whether the outbreak turns out to be a single-wave pandemic, a multiple wave pandemic or an enduring pandemic. If Covid-19 remains confined to a single-wave pandemic, the country is expected to install 1,506MW in 2020. India is chasing a wind capacity target of 60,000 MW by end 2022 and was expected to step up its installation over previous years this year had the situation remained normal. But if it returns to normal following a single wave pandemic, it is expected to reach 3,799 MW to be installed in 2021. Under this multiple wave-pandemic scenario, installations in 2021 are expected to be 3,164MW. It is foreseen that installations will remain at 1,306 MW in 2020 even if the pandemic turns out to be enduring the same as in the case of a multiple wave pandemic. However, 2021 installations will be worse affected in this case, going down to 2,649 MW.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Paper & Printing

Making beds made of paper for Covid-19 quarantine hubs Khetan Corru Case is a three-decade-old family-run organisation based out of Mumbai and Hyderabad with a new 5-ply automatic plant equipped with the latest technology to meet global standards in the corrugated board. The company has a vast experience of working with big companies such as Pepsico, ITC, Flipkart and Carlsberg and many other multinational FMCG companies. Khetan Corru Case has developed Corrubeds, which is both strong and water-resistant. The beds can take a load of up to 250 kgs and come with special chemical coating, which enables its water-resistant characteristic. The Corrubeds comes in a portable knock-down-flat format, which takes less than four minutes to assemble. Since the beds are made from paper, it can be re-pulped and recycled, making it an eco-friendly solution. They claim that the production of the beds can be scaled to over 2,000 beds per day, depending on the quantity of the orders. The bed is made of high strength corrugated board made from high strength kraft paper. The water-resistance capability was validated at the Packaging Clinic and Research Institute (PCRI) lab in Hyderabad. These beds are around 40% cheaper than the conventional metal beds and is eco-friendly and easy to dispose.

HP's 3D printing tech helps manufacture ventilator parts for COVID-19 treatment in India HP Inc has partnered with Redington 3D in India to produce 1.2 lakh ventilator parts for AgVa Healthcare. As part of this initiative, 12 categories of parts have been 3D printed to manufacture 10,000 ventilators. These ventilators are being deployed across India for the treatment of COVID-19 patients. 3D printing refers to creation of a three-dimensional object in which layers of materials are formed with computers controlling the process. The parts include inhale and exhale connectors, valve holders, oxygen nozzles and solenoid mounts, among others. AgVa Healthcare's ventilator is an ICU ventilator with volume, pressure and flow control. The entire system can be controlled by a capacitive multi-touch interface without the need of compressed medical air. This partnership is part of HP's global commitment in the battle against COVID-19. HP and partners have produced more than 2.3 million 3D printed parts.

Paper imports continue despite Covid Paper imports continue to surge even as domestic paper manufacturers limp back to restart production after the Covid outbreak. Both inward and outward supply chains of the paper industry have been totally disrupted and are yet to recover fully. Import of paper has been rising steadily. The domestic paper industry is operating under challenging conditions post-Covid. Amid a sharp fall in demand, substantial quantities of paper are imported at significantly lower costs from countries such as China. Paper imports have risen 2% to € 223.17 million (₹1,830 crore) in the first 11 months of FY20. Even after the Covid outbreak there in November, China has managed to export paper worth € 223.29 million (₹1,831 crore) to India. Countries such as China and Indonesia, which have significant excess domestic production capacity, are using the opportunity to push their excess inventory into India at very low prices, which attract either nil import duty under the India-ASEAN FTA or a preferential import duty under the Asia- Pacific Trade Agreement.

Amazon India scraps single-use plastic at fulfilment centres Amazon India had successfully eliminated single-use plastics in the packaging of goods at its fulfilment centres across the country, sticking to a commitment made nine months ago to replace all packaging material with reusable or recyclable materials. The company has replaced bubble wrap and plastic pillows with paper dunnage and biodegradable paper tape and is also urging sellers on its platform who directly ship products to consumers to adopt its sustainable packaging practices. It has also stopped the use of cling film in packaging products.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Ports & Shipping

Government invites global vessel owners to register ships in India to take advantage of Make in India The government has invited global vessel owners to flag their ships in India to take advantage of the Make in in India policy. The government has recently revised its Make in India Policy for public procurement, under which no global tender enquiry will be issued, except with the approval of the competent authority, for the procurement of all services with estimated value of less than € 24.39 million (Rs 200 crore). It is estimated that the Make in India policy will provide an opportunity to at least double the number of Indian flag vessels in the immediate term from the present approximately 450 to at least 900 and more over a period of 3 years leaving further scope for additional investment in the in the Indian flag tonnage. With a modern maritime administration, continuous supply of trained seafarers, ship management skills already available, ship owners worldwide are invited to now flag their ships in India to take advantage of the Make in India policy in respect of transportation of government cargoes.

Coastal Economic Zone project to make Karwar-Ankola a hub Karnataka is pursuing a Coastal Economic Zone (CEZ) project in an about 50-km stretch along the west coast to make the Karwar-Ankola region a hub for economic development. The proposed CEZ project would incorporate works that were already in the pipeline for air, water and rail connectivity, including development of the Belekeri port, a civil enclave at the planned Karwar naval airport and the Hubballi- Ankola railway line. The state’s infrastructure development department (IDD) has prepared the proposal streamlining major infrastructure projects in the region, which will give a push to the development potential of Karwar and attract investors. One of the proposals is to develop an all-weather port at Belekeri, 30 km from the Karwar port with the proximity to the existing Konkan Railway line and the proposed Hubballi-Ankola railway line. The Belekeri port would attract the hinterland traffic from JSW steel plant, KIOCL and other industries from Ballari and the central Karnataka region which is presently moved towards Krishnapatnam and Chennai ports.

GMR to develop at Bhogapuram, inks pact with State government GMR Infrastructure Limited will develop a greenfield airport at Bhogapuram near the port city of . The diversified infrastructure company, which has developed marquee projects including the Hyderabad and Delhi airports, has assured the Government that the new airport will serve as a landmark in the State. Like in other airports, services of some of the leading global partners will be engaged to complete the project. The airport is seen to serve as a gateway for the northern part of the State connectivity to the airport from Vizag will also be developed. A metro link to the airport is also under consideration.

Varanasi, Haldia river terminals to be privatised on equip-operate-transfer model The Shipping Ministry is making a fresh attempt to privatize the multi-modal cargo terminals at Varanasi, Haldia and Sahibganj on National Waterway 1. The Inland Waterways Authority of India (IWAI) has sought bids to privatise the multi-modal terminals at Varanasi and Haldia on an equip, operate and transfer basis while a tender will be floated soon to privatise the Sahibganj terminal on a operate, manage and develop (OMD) model. In January, the IWAI had scrapped a tender to privatise the Varanasi terminal on the OMD model, wherein the successful bidder would operate and manage the facility and also expand its capacity from 1.26 million tonnes (mt) a year to 3.85 mt a year, within four years from the start of commercial operations. The Haldia terminal, with a capacity to handle 3.26 mt of cargo, is also been put up for privatisation on the EOT model. The IWAI has constructed the Haldia facility with an investment of € 56.7 million (₹465 crore). The Haldia contract will have a concession period of 15 years, which can be extended by an extra five years.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Garment and Leather

Textile firms want a piece of the growing hygiene products pie Arvind Limited will be launching a fabric it claims could destroy coronaviruses when droplets containing viral load land on it. The fabric was developed in collaboration with a Swiss company, which produces a chemical coating for fabric that lends anti-viral properties. While initially the products would be launched under the Arvind Intellifabrix brand, going forward, they will extend it to other consumer brands in its portfolio. Arvind markets brands like Arrow, US Polo Association and Flying Machine in India, amongst several others. The company aims to achieve about 10% of the annual menswear sales of Arvind Intellifrabrix of about € 121.95 million (Rs 1000 crore) through this fabric. It will also sell masks and garments made from this material. Rival Welspun is also looking to invest in products like disinfectant wipes, masks, coveralls, and disposable bedsheets that would be in high demand in current times.

Budweiser diversifies into fashion apparel to beat pandemic blues Anheuser Busch InBev, the brewer, has set up a new unit to enter fashion clothing segment, hoping to build brands in a market where liquor advertising is banned. The move comes at a time when both apparel and beer market has shrunk after prolonged closure of outlets that sell them. The new retail firm, Budweiser Streetwear Co will make apparel and face masks and has partnered fashion marketplace Myntra to sell the brand. The in-house brand will sell T-shirts, sweatshirts, tops and track pants for younger consumers. Globally, as well as India, several spirits companies have extended their brands into lifestyle merchandise mostly associated with gifting or sportswear. There is growing affinity towards the category which is evident with the steep rise in demand in recent times.

Indian fashion industry on the verge of collapse Fashion retailers were ready with their spring-summer collections in early March but many could not even launch them as most states ordered closure of shopping malls to curb the spread of the novel coronavirus by then and then in late March the nationwide lockdown started. Hence, the move to run the unsold inventory until October when the winter season begins. The fashion apparel business declined by 70% year on year during June 1-15. Customers are still wary of getting into retail stores and we are only doing about 30% of business compared to last year. Manufacturers confirmed that they have hardly received any fresh order for retailers. Exports are seeing a stronger recovery. Both Europe and the US are opening up. Exports will start moving towards 60-70% of the original mark possibly by the end of second quarter. With most fashion brands looking to run their unsold spring-summer collections until October without placing fresh orders, garment manufacturers say many factories will be closed and hundreds of thousands will lose their jobs. Retailers will be liquidating inventory for the next two months and they will only start placing orders when the cash cycle starts to improve.

Lockdown tears into leather, apparel, handloom exports The lockdown has crippled leather, apparel and handloom exports due to shortage of labour and disruption in logistics, delaying shipments to major markets like Europe and US. The leather industry had suffered nearly € 0.91 ($1) billion export order losses due to the Covid-19-induced lockdown. Shipments for Christmas and New Year and crucial samples for the Spring (new) collection in Europe are being delayed. April to August are crucial months during when shipments for the festival season, and for the new Spring collections are dispatched. Though orders have come from European clients but there is a shortage of labour. The government has allowed units to function, but the staff need to stay at the factory or nearby. This is not possible, given that over 85% of employees are women. The lockdown restriction has also affected movement of goods by sea. Shipment of goods by air to save time escalates the operations cost by three to four times. Major markets of Europe and the US contribute to which 70% of leather exports from India. Any further lockdowns in Chennai and its surrounding districts will result in a very huge number of large-scale order cancellations € 137 (~ $150 million) for exporters.

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

General

Ashok Piramal Group sells Miranda Tools to Swedish Dormer Pramet The Ashok Piramal Group has sold its high-speed steel cutting tools business, Miranda Tools to Swedish Dormer Pramet. The acquisition enhances Dormer Pramet's product offering and facilitates an improved presence in key markets such as India, China and Southeast Asia through an access to Miranda Tool's distribution network and manufacturing facilities. Ashok Piramal Group is looking to sell its non-core businesses. In 2019, Miranda Tools had revenues of about 200 million SEK and around 580 employees. Such precision engineering businesses are highly profitable and are valued at around 10-12 times EBITDA. Globally and in India, these businesses have around 25-28% EBITDA margins. The acquisition is aligned with Sandvik Machining Solutions' focus on strengthening their round tools offer whilst also adding greater production capacity and flexibility to support long-term growth. The transaction highlights the strategic fit between Sandvik and Miranda Tools' businesses and also the continued interest of global buyers looking at strong manufacturing businesses in India.

IIT-Madras and General Electric tie-up to build a next-gen combustor for small aircraft and helicopter engines IIT Madras and General Electric India Technology Centre (GEITC) are jointly developing a 3D printed combustor aimed at reducing weight and improving fuel efficiency in small aircraft and helicopter engines. Both organisations are designing the combustor the burner in a gas turbine engine, with nearly one-tenth of the parts as compared to traditional engines. The fabricated combustor has only four parts whereas the same combustor, with conventional manufacturing, will have at least thirty parts. The primary objective of this project is to reduce the length of the combustor, which will reduce its weight. It also reduces the fuel consumption of the engine. The engine could also be used in power generation. In larger aircraft, it could be used as part of an auxiliary power unit (APU), as well as for distributed/ decentralised power generation as in backup gensets, or in remote locations, or along with hybrid solar/wind smart grid solutions. The size and weight of the engine would be the same depending upon how the combustor is designed to fit into the rest of the engine. A special feature of this project is that it marks the first time that a 3D printed full annular combustor was tested at actual turbine conditions in India.

Thomson brand licensee Super Plastronics to invest in 5 years Super Plastronics Pvt Ltd (SPPL) would invest € 122 million (Rs 1,000 crore) in the next five years to expand its manufacturing capacity and strengthen its presence in the consumer electronics and appliances segment. It would continue to focus on the affordability with aggressive pricing and harness the potentials of e-commerce channels. They would be investing to create facilities for production and product expansion. The company plans to expand its product line in the appliances segment in a phased manner, starting with washing machines. This would be the fourth plant of Super Plastronics, which is coming in Uttar Pradesh, where the company has been allotted land by the state government at the Delhi-Meerut highway. The company has priced its range of semi-automatic washing machine, which would be available in three variants starting from € 85 (Rs 6,999), which would be exclusively available on Flipkart.

Samsung and OnePlus to manufacture most TV sets in India Samsung and OnePlus have partnered with Chinese electronics firm Skyworth to manufacture television sets in its Hyderabad facility which it runs as a joint-venture with an Indian partner. Samsung has also expanded the existing partnership with home grown contract manufacturer Dixon Technologies to include smart TV models from 43 to 58-inches. Till recently, Dixon was manufacturing the 32-and 43 inch models for Samsung in India since January this year. Skyworth will be producing the 32 and 43 inches as of now. For OnePlus, this is the first time it will make televisions in India after it entered the segment as a global first in the country last year. Samsung’s decision to produce locally is to be self- reliant, take advantage of zero import duties and since there was pressure on the company to restart TV manufacturing in India as its exit was against the government’s make in India initiative.

Greenko Energies plans 3,960 MW pumped storage project in Telangana Greenko Energies has proposed to develop a 3,960 MW mega pumped storage project in Mulugu district of Telangana with an investment outlay of € 2220 million (Rs.18,203 crore). The project is based on the concept of non-consumptive utilisation (re-circulation) of 1.65 TMC of water from the Godavari river and involves creation of two reservoirs and setting up of 12 turbines of 330 MW each. The Ippugudem project, which is now under consideration of the Ministry of Environment and Forests for environment impact assessment (EIA), will be an off-stream project and entails construction of two reservoirs, where 1.65 TMC water will be lifted one time from the river Godavari. The project will have a surface powerhouse downstream and include 12 reversible type units of a generator/motor and a turbine pump each with a capacity of 330 MW. The company expects to complete the project within 36 months. VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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

Focus State – Tamil Nadu

Governor: Shri Banwarilal Purohit

Chief Minister: Shri K. Palaniswami

General Facts Area (sq km) 130,058 sq kms Total Population 6.79 crores

Literacy Rate 80.09 % Chennai International Airport ,Trichy, International Airport, International Airport ( Airport), , Airports International Airport, Puducherry Airport

Infrastructure

Roads Tamil Nadu has 28 national highways. It is an important terminus in the Golden Quadrilateral road link of NHAI. District centres are linked via 187 state highways. Tamil Nadu to get 6-8 lane expressways of 2000 km, 4 lane highways of 5000 km and all the highways to be converted into double-lane along with paved shoulders. An amount of € 594.958 ($ 653.8) million, Rs 4,570 crore has been allocated for regular maintenance of roads in the Budget Estimates 2019-20. As of June 2018, 106 road project works have been completed in the state under PMGSY. During 2019-20, 622 km of roads will be covered at a cost of € 93.09 ($ 102.3) million Rs 715 crore in Sivagangai division under PBMC model.

By Air Tamil Nadu has international airports at Chennai, Coimbatore & Trichy; it has domestic airports at Tuticorin, Salem, Vellore (non-operational) & Madurai. The Chennai International Airport was the 1st in the country to get ISO 9001-2000 certification. Tamil Nadu Vision 2023 envisages an investment of € 4.73 ($ 5.2) billion1 for developing a Greenfield airport near Chennai & upgrading other airports. Construction work on a new passenger terminal at the Chennai International Airport has been completed. The terminal would have a capacity of 10 million passengers. Electronic Data Interchange (EDI) facility for customs clearance is available at the Chennai Airport. A new integrated terminal building has been constructed at . Thanjavur is slated to get an airport, as the government has identified 50 locations in smaller cities for airport. In June 2017, the plan for the development of a new domestic airport in the border town of , district had been approved by the state government. An MoU was also signed between the state government and the Ministry of Civil Aviation to launch low cost-air services from the Hosur Aerodrome. As of August 2018, Bengaluru airport has agreed to give permission of operating flights from the airport. In February 2019, The Airports Authority of India (AAI) more than 25% of budget allotted for the expansion of airports in Tamil Nadu, The project costing € 311.16 ($341.93) million Rs 2,467 crore

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

Railways Tamil Nadu’s railway network falls under the jurisdiction of Southern Railways, which covers Tamil Nadu, Kerala, Puducherry & a small part of Andhra Pradesh. It has 6 divisions, 4 of which are in Tamil Nadu (Chennai, Tiruchirappalli, Madurai & Salem). Coimbatore is also a key railway junction. Tamil Nadu presently has a 4,181 km rail network, with 690 railway stations. Chennai has a well-established suburban railway network connecting it to the suburbs & neighbouring cities. Mass-Rapid-Transit System (MRTS) is an elevated line of the suburban railway in Chennai. It runs from the Chennai beach junction to the suburb, covering a distance of 25 km over 21 stations. It is operated by the Southern Railways. A stretch of 10 km out of the 45 km under 1st phase of the rail project is already operational. About 9 km of Extension under 1st Phase of the Chennai metro rail project is also expected to be completed in March 2020. Chennai Metro Rail Budget Allocation for 2019-20 was € 338.15 ($ 371.59) million Rs 2,681 crore.

Ports Tamil Nadu has 3 major ports: Chennai, & VO Chidambaranar. The state also has 15 minor ports. The mainly handles container cargo, while the Ennore & V O Chidambaranar ports handle coal, ores & other bulk minerals. Tamil Nadu Vision 2023 envisages an investment of € 2.82 ($ 3.1) billion for 3 greenfield ports & 5 minor ports, with a cumulative capacity of 150 million tonnes. During 2018-19, total traffic handled at non-major ports in Tamil Nadu stood at 0.37 million tonnes.

Telecom According to the Telecom Regulatory Authority of India (TRAI), Tamil Nadu had nearly 81.80 million wireless subscribers and 2.07 million wire-line subscribers as of December 2019. Tamil Nadu had a high tele-density of 115.68 per cent, as of December 2019. By the end of December 2019, 39.27 million subscribers had submitted requests for mobile number portability in Tamil Nadu. In order to boost the speed of mobile broadband up to 135 Mbps, in the state, Bharti Airtel invested in development of 4G advanced network services. The investment of € 8.34 ($ 9.16) billion, was made as a part of “Project Leap” that the company had deployed for enhancing network transformation in India. The Bharti-Singtel submarine cable link between Chennai & Singapore has a bandwidth of 8.4 terabits per second; a 2nd submarine cable of 5.12 terabits per second bandwidth has been commissioned by Tata Communications Ltd. (formerly, VSNL) between Chennai & Singapore.

Power The total installed capacity of Tamil Nadu is forecasted to expand Installed power capacity (GW) and the State Government invested € 678.70 ($ 745.82) million Rs 5,000 crore to boost renewable energy policies, transmission infrastructure and commission a floating solar plant. The Tamil Nadu Government has proposed to provide 2,000 solar powered pumps up to a capacity of 10 HP for improving the micro irrigation in the state. As per budget 2019-20, € 10.60 ($ 11.65) million have been allocated for this project. 55 GW by 2026-27. As of February 2020, the state had a total installed power generation capacity of 32.97 GW. Thermal power contributed 15.01 GW to the total installed power generation capacity, followed by renewable power, hydropower & nuclear power with contributions of 14.33 GW, 2.18 GW and 1.45 GW, respectively. The private sector was the biggest contributor to the total installed power generation capacity in Tamil Nadu with a capacity of 19.43 GW, followed by 7.14 GW under state utilities and 6.39 GW under central utilities.

Economy At current prices, Tamil Nadu’s GSDP was about € 245.08 ($ 269.32) billion Rs 20.92 trillion in 2020-21. The GSDP of the state grew at a CAGR of 12.05% between 2011-12 and 2020-21. The state’s per capita GSDP was € 2,617.36 ($ 2,876.23) Rs 207,519.98 in 2018-19. Per capita GSDP increased at a CAGR of 10.43% between 2011-12 and 2018-19.

Tamil Nadu’s Net State Domestic Product (NSDP) was about € 181.72 ($199.69) billion Rs 14.41 trillion in 2018-19. NSDP of the state grew at a CAGR of 11.45% between 2011-12 and 2018-19. The state’s per capita NSDP was € 2,348.18 ($ 2,580.42) Rs 186,177.65 in 2018-19. The per capita NSDP increased at a CAGR of 10.43% between 2011-12 and 2018-19. In 2018-19, the tertiary sector contributed 54.48% to the state’s GSVA at current prices, followed by the secondary sector at 32.46%.The tertiary sector grew at an average rate of 12.40% between 2011-12 & 2018-19., driven by trade, hotels, real estate, finance, insurance, transport, communications & other services. The secondary sector grew at an average rate of 9.38% between 2011-12 & 2018-19. Mainly driven by

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

12 Indian Economic and Industrial Scenario, 6/2020 VDMA INDIA Office manufacturing & construction sectors. The primary sector grew at an average rate of 11.10% between

2011-12 & 2018-19.

According to the DPIIT, cumulative FDI inflows in Tamil Nadu during April 2000 to September 2019 stood at € 28.39 ($ 31.20) billion. Tamil Nadu organised its second Global Investor Meet (GIM) on January 23 and 24, 2019. The state surpassed the targeted investment and attracted € 44.27 ($ 48.65) billion Rs 3.4 lakh crore investments in 12 sectors including automobile, textiles, renewable energy, etc. Around 146 MoUs were signed with an expectation to generate 10.5 lakh job opportunities in the state.

Total merchandise exports from the state stood at € 27.77 ($ 30.52) billion during 2017-18. During April- December 2019, exports stood at € 20.83 ($ 22.90) billion. Major items exported from the state of Tamil Nadu are motor vehicles, readymade garments including accessories and auto components and parts etc.

Urban Infrastructure Tamil Nadu Sustainable Urban Development Programme has been taken up by the state government with the assistance of World Bank at an amount of € 532.54 ($ 585.24) million. Tamil Nadu Vision 2023 envisages an investment of € 52.23 ($ 57.4 billion) for urban infrastructure development. Google India and Tata Trusts have decided to expand their ‘Internet Saathi’ program in Tamil Nadu in which Google India will facilitate the provision of Google Cloud credits for eligible startups engaged with Tamil Nadu Government’s startup initiative. Technical mentorship and advisory support to various startups will also be made available by Google India. The state government has allocated € 214.83 ($ 236.08) million Rs 1,650 crore for the smart cities and € 188.79 ($ 207.46) million Rs 1,450 crore for AMRUT programme, as per budget 2019-20. As of October 2018, 100% households have been electrified in the state under Saubhagya Scheme.

Social Infrastructure

Education Tamil Nadu is one of the states running the Total Literacy Campaign, the Post-Literacy Mission & the Continuing Education Programme (CEP). In the Budget 2019-20, € 3.74 ($ 4.11) billion Rs 28,757.62 crore has been proposed for the school education. A sum of € 177.37 ($ 194.91) million Rs 1,362.27 crore has been allocated in this Budget for providing laptops to school students during 2019- 20. An amount of € 596.87 ($ 655.91) million Rs 4,584.21 crore has been provided in the Budget Estimates 2019-20 for Higher Education. Tamil Nadu is expected to get three new government-funded residential schools in 2018. Union Education Ministry had recently approved the state's proposal to construct the facilities at Villupuram, Nagapattinam and where the dropout rate has been high compared to other areas.

Health The state has a 3-tier health infrastructure comprising hospitals, primary health centres, health units, community health centres & subcentres. As of January 2020, the state had 34 district hospitals, 319 sub-district health centres, 1,976 primary health centres, 8,725 subcentres & 449 community health centres. As per State Budget 2019-20, a premium amount of € 177.46 ($ 195.02) million Rs 1,363 crore was allocated for Pradhan Mantri Jan Arogya Yojana. A total amount of € 134.54 ($ 147.85) million Rs 1,033.29 crore has been provided in the Budget Estimates 2020-21 for the CMCHIS. In the Budget Estimates 2020-21, € 2.07 ($ 2.27) billion Rs 15,863.37 crore has been allocated to Health and Family Welfare Department. The Government of India’s Pradhan Mantri Matru Vandana Yojana has been provided a sum of € 124.89 ($ 137.24) million Rs 959.21 crore in the Budget Estimates 2020-21.

Industrial Infrastructure TIDCO, State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tamil Nadu Industrial Investment Corporation Ltd. (TIIC) & Tamil Nadu Small Industries Development Corporation Ltd (TANSIDCO) are jointly developing industrial infrastructure in the state. Tamil Nadu Industrial Guidance & Export Promotion Bureau has been set up with the objective of attracting major investment proposals into Tamil Nadu. As of November 2019, the state had 54 formally approved SEZs, 50 notified SEZs and four with in-principle approval SEZs and has total 40 exporting SEZs. In May 2017, an MoU was signed between the Tamil Nadu National Industrial Development Corporation Ltd. (TIDCO) and the National Highways Authority of India for the development of a multimodal logistics park in the Industrial Node area near Kamarajar Port.

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

Key Industries in the State

Agriculture and Allied Industries Tamil Nadu is one of the leading producers of bananas, flowers, tapioca, mango, coconut, groundnut, coffee, tea & sugarcane. Tamil Nadu is the second largest producer of poultry and dairy products in India and the third largest producer of tea and coffee in the country. The state is among the leading producers of horticultural crops and fruits in the country. With the aim of creating a conducive environment for the healthy growth of the food processing industry, an exclusive Food Processing Policy will be unveiled in 2018-2019. A sum of € 1.37 ($ 1.50 billion) Rs 10,550.85 crore has been provided in the Budget estimates 2019-20 for the agriculture sector, which includes € 39.05 ($ 42.92 million) Rs 300 crore under National Agriculture Development Programme and € 11.35 ($ 12.47 million) Rs 87.22 crore for National Mission for Sustainable Agriculture. In the Budget Estimates 2019-20, an amount of € 163.06 ($ 179.19 million) Rs 1,252.41 crore has been allocated for Animal Husbandry and € 37.16 ($ 40.84 million) Rs 258.45 crore for Dairy Sector. A sum of € 179.95 ($ 197.75 million) Rs 1,229.85 crore has been provided in the Budget Estimates 2020-21 for Fisheries Sector.

Textiles Tamil Nadu is known as the “Yarn Bowl” of the country. Tamil Nadu is the largest producer of cotton yarn, accounting for 41% of India’s production. Coimbatore and Tirupur are the major textile centres in Tamil Nadu. Tirupur is known as the ‘Knitting City’, while Coimbatore is called the ‘Manchester of ’. In the State Budget 2019-20, € 5.20 ($ 5.72) million was allocated under the newly launched Handloom Support Programme for the year 2019-20. Allocation of € 159.40 ($ 175.17) million for Handlooms and Textiles sectors and € 27.49 ($ 30.21) million for Handicrafts and Khadi sectors have been provided in the Budget Estimates 2020-21. During 2018-19, Tamil Nadu produced 2,072 MT of raw silk. During April-September 2019, raw silk production stood at 922 MT. In 2019, Chief Minister launched the Tamil Nadu New Integrated Textile Policy, 2019.

IT and ITes Tamil Nadu has emerged as a key destination for IT investments. The state has 22 approved IT Parks. The in Chennai is spread over 1.28 million sq ft. It is the largest IT facility in India, promoted by TIDCO and ELCOT. Electronics Corporation of Tamil Nadu Limited (ELCOT) has established eight Information Technology Special Economic Zones (ELCOSEZs) in Chennai and seven in Tier-II locations: Coimbatore, Madurai (2), Trichy, Salem, and Hosur. The state had 18 operational SEZs for IT/ITeS as of March 2019. IT & ITeS exports from Tamil Nadu have increased to Rs 1.39 lakh crore (US$ 19.9 billion) in 2018-19, at a growth rate of 10 per cent year-on-year. In September 2018, Information Communication Technology (ICT) Policy, 2018 was announced by the state government for investors especially IT and ITeS companies, start-ups and MSMEs. This policy will provide incentives like administrative incentives, capital subsidies and tax exemptions etc. to the investors. The state government is planning to make Tamil Nadu a global SaaS hub. It is planning to attract € 1.95 ($ 2.14 billion) Rs 15,000 crore in the IT and ITeS sector in the second Global Investors Meet (GIM) to be held in January 2019.

Tourism Tamil Nadu is a highly preferred tourist destination by both domestic & foreign tourists. Tamil Nadu boasts of historical monuments, forts, wildlife & bird sanctuaries, temple towns, numerous places of worship, hill resorts, rich heritage & culture, waterfalls, beaches, breath-taking valleys, mangrove forests, backwaters, music & dance festivals. Chennai & Coimbatore are becoming popular for Meetings, Incentives, Conferences & Exhibitions (MICE) tourism. The state is one of the leading medical tourism & wellness tourism destinations in India. The state is focusing on Clean & Green Destination Campaign in order to attract more & more tourists. Tamil Nadu’s tourism industry increased in terms of tourist arrivals to reach 349.92 million in 2017, at a CAGR of 16% between 2011 & 2017. It ranked first in terms of domestic tourist arrivals and second in terms of foreign tourist arrival in 2017(P)

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

Key Procedures & Policies

Aerospace and Defence Industrial Policy, 2019 To create an end-to-end ecosystem for Aerospace sector development covering design, engineering and manufacturing of aircraft for civil and defence sector.

Tamil Nadu Solar Energy Policy 2019 To achieve energy security. To reduce carbon emissions. To project Tamil Nadu as a solar hub.

Information Communication Technology (ICT) Policy 2018 To address the investors especially IT and ITeS companies, MSMEs, and Start-ups To provide incentives like capital subsidies, tax exemptions, administrative incentives, fiscal incentives. To promote research and green IT industry.

Micro, Small and Medium Industries Policy 2014-15 To develop MSMEs in the state. To enhance joint ventures of private industries with new industrial estates such as SIDCO to encourage the export of products of MSMEs in the state.

Tamil Nadu Disaster Management Policy To develop a new culture of prevention, preparedness and quick response to disasters. To reduce the vulnerability of the community through proper risk assessment.

Tamil Nadu Biotechnology Policy 2014 Thorough record of bio-resources to be engaged in the state. To invite R&D institutions and manufacturing firms.

Tamil Nadu Automobile and Auto Components Policy 2014 To promote competitiveness and cut costs for the industry. To address the specific organisational gaps and scarcities. To develop the talent pool to meet the skilled manpower requirements of this industry.

Enhanced Rural BPO Policy 2012 Attract willing entrepreneurs to set up business centres in rural areas. Provide conducive environment for the BPO industry to thrive in rural areas.

E-Waste Policy 2010 To minimise e-waste generation, utilise e-waste for beneficial purposes through environmentally sound recycling and ensure environmentally sound disposal of residual waste.

E Security Policy 2010 To define a set of minimum information security requirements that shall be met by all departments of the .

Tamil Nadu Business Facilitation Bill 2009 To facilitate the single-window clearance system in the state of Tamil Nadu, with the statutory powers to hasten project approvals.

Micro, Small and Medium Industries Policy 2008 To develop MSMEs in the state. To encourage the export of the products of MSMEs in the state.

Information Communication Technology (ICT) Policy 2008 To make Tamil Nadu the ICT Hub of South Asia by creating a knowledge-driven ecosystem, leveraging entrepreneurship and promoting socially inclusive growth to achieve a 25.0% production share of the Indian ICT industry.

Tamil Nadu Minor Port Policy 2007 To increase the share of Tamil Nadu in the export and import sector. To decongest the major ports at Ennore, Chennai and Tuticorin in order to improve their productivity.

Tamil Nadu SEZ Policy 2003 To provide legislative support to SEZs. To provide adequate water supply to SEZs. To ensure continuous power supply of required quality to SEZ units. To provide single-window clearance to all SEZ units.

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

Development Projects: Industrial Clusters & SEZs

VDMA-Newsletter “India”, Edition 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444

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Seminars & Exhibitions

ISH India 2020 Date Venue Organizer Profile Products/ Participants

Bombay Messe Frankfurt Trade ISH India powered . The bathroom

Exhibition Fairs India Pvt Ltd by IPA, in its 4th experience Centre (BEC) edition aims to . Building and energy Gala Impecca, 5th Floor raise the bar by technology Mumbai Andheri Kurla Road, bringing . Kitchens international Andheri East . Efficient systems and manufacturers and Retrospect: Mumbai 400 059 renewable energies suppliers dealing 2019 with plumbing, World of installation September 2020 September Tel: 022 6144 5430 / 022 sanitation, technology 6103 8412 Exhibitors: 60 bathroom, kitchen

20th and renewable – Email: energy together Visitors:6,276 [email protected] sefrankfurt.com; with regional [email protected] distributors and efrankfurt.com buyers.

Website: www.ish-india.in 18thSeptember

IFAT India 2020 Date Venue Organizer Profile Products/ Participants

Bombay Messe Muenchen India IFAT India - India's . Hydraulic engineering Exhibition Pvt. Ltd. leading and well construction Centre (BEC) environmental . Water and sewage Solitaire Corporate Park technology trade Treatment Mumbai Building No. 7, 167, Unit fair provides a . Water supply and unique platform to No. 762/862, sewerage systems Guru Hargovindji Marg, key industry

Retrospect: . Solid waste management (Andheri-Ghatkopar Link players, scientists 2019 Road), Andheri (East), and innovators and recycling Mumbai – 400 093, India from all over the . Generating energy from Exhibitors: 311 world to come waste materials Tel: 022 4255 4744 / 022 together to provide . Energy efficiency solutions to resolve October 2020 October 4255 4744 technologies, services

Countries :23

th the environmental and products

15 concerns of the . Decontamination of old - Email Visitors: 9,633 : hour. [email protected], sites/soil treatment [email protected] . Air pollution control and noise reduction October October Web: www.ifat-india.com . Measuring, control and th

3 1 laboratory technology . Environment management and services . Science, research, technology transfer

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

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 E-mail: [email protected] Email: [email protected]

Ms. Jamly John, General Manager Mr. S Manohar, Regional Head-South Telephone: 022 6818 1087 / 88 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 6/2020 Contact: Oliver Wack, Phone: +49 69 6603-1444